NSE Introduces Nifty500 Quality and Volatility Indices

Ganesh Dhamodkar, CC BY-SA 4.0 , via Wikimedia Commons

NSE Indices Limited, a company formed by NSE, has announced the launch of two innovative strategy indices-the Nifty500 Quality 50 and the Nifty500 Low Volatility 50. Both indices provide investors with refined benchmarks that they could use based on quality and stability for various investment strategies.

The Nifty500 Quality 50 index is supposed to track the top 50 companies in the Nifty 500 that have the highest quality scores. The quality metrics include a combination of return on equity, debt equity ratio, and consistent growth over five years in earnings. Emphasis is laid on long-term financial performance and stability.

On the contrary, the Nifty500 Low Volatility 50 Index expresses the 50 least volatile stocks in the ambit of the Nifty 500. It is calculated by the standard deviation of daily price returns for the last year. Thus, it becomes an option to risk-averse investors looking for stable returns.

Both indices take the combined score of factor scores and free-float market capitalization to determine stock weights and impose caps for balancing. Both indices have a base date of April 01, 2005, with a base value of 1,000. Further, these will reconstitute and rebalance semi-annually to reflect market conditions.

The indices would act as an appropriate benchmark for ETFs, index funds, and structured products and place new tools at the disposal of asset managers to align their offerings with emerging market directions.

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Tomorrow 24rd December is celebrated as National Consumer Rights Day ! 


As  stated in Bhagavad Gita : (Bhagavad Gita 10.20)

विभूतिं च जगतां तस्माद् अहं आत्मा गुडाकेश।

I am the source of all creation; everything emanates from Me.


NASA’s Parker Probe will be making a historic flyby of the Sun.

This probe is making NASA history, the Parker Solar Probe of the agency will be making a spectacular flyby in the Sun’s corona on December 24, 2024-the first-ever flyby of the Sun and the closest approach to the Sun than any spacecraft ever made.


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 ₹21 Crore Fraud: SEBI Investigates Misuse of Non-Public Information in Stock Trades
Published on: December 22, 2024 at 8.30 PM GMT.


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