From power to hospitals: NSE rolls out 11 new sector-focused indices
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NSE’s index services subsidiary, NSE Indices Limited, today launched 11 new sectoral indices, expanding its sectoral index suite to 34 and providing a more granular representation of key segments of the Indian economy.
The newly launched indices are:
1. Nifty Power
2. Nifty Capital Goods
3. Nifty Telecommunications
4. Nifty Construction
5. Nifty Consumer Services
6. Nifty Commercial & Transport Services
7. Nifty Retail
8. Nifty Hospitals
9. Nifty NBFC
10. Nifty Housing Finance
11. Nifty Insurance
According to the circular, “This expanded suite of sector indices offers a more comprehensive and granular coverage across established and emerging sectors.” The exchange added that the launch of these 11 indices takes the total count of sectoral indices to 34, “enhancing the breadth and depth of sectoral representation across India’s economy.”
The new indices are expected to act as benchmarks for asset managers and serve as reference indices tracked by passive investment products, including Exchange Traded Funds (ETFs), index funds and structured products.
NSE goes beyond equities
NSE has also been expanding its presence across commodities and market infrastructure. The stock exchange signed a Memorandum of Understanding (MoU) with SUFI to collaborate on the development and growth of the steel and other relevant commodity derivatives ecosystem in India.
The partnership aims to build a transparent and efficient price-risk management framework for participants across the steel value chain by promoting the use of exchange-traded derivatives, according to the release. The release noted that the initiative is expected to benefit steel manufacturers, processors, MSMEs, infrastructure companies, OEMs, and other end-users that are increasingly exposed to fluctuations in raw material and steel prices.
The exchange is also in discussions on a strategic collaboration with the Indian Gas Exchange (IGX) to develop and launch natural gas futures. The proposed futures contract is designed to offer market participants a transparent, efficient and robust risk management tool, aligned with India’s evolving natural gas pricing framework.
Separately, NSE has launched electronic gold receipts (EGRs) as a new segment, in a move aimed at bringing greater transparency, efficiency, and formalisation to India’s gold market. “A transformative initiative designed to bring transparency, efficiency, and formalisation to India’s massive, deeply tradition-rooted gold market,” NSE said in a release.
The exchange said the initiative is designed to bridge the gap between physical gold and financial markets by offering a regulated, secure, and technology-driven platform for trading the precious metal. EGRs are dematerialised securities that represent ownership of physical gold, which is stored in Securities and Exchange Board of India (Sebi)-accredited vaults and held electronically through depositories. Each EGR is fully backed by physical gold and can be traded on the exchange, enabling seamless integration of gold into the formal financial system, as per the release.