NSE Indices unveils Nifty India Internet & E-Commerce Index to track digital economy stocks
Mumbai: NSE Indices, a subsidiary of the National Stock Exchange (NSE), has introduced the Nifty India Internet & E-Commerce Index, a thematic benchmark designed to track companies primarily operating through online platforms, reported Moneycontrol.
The index, which was launched on February 28, consists of 21 constituents selected from the Nifty Total Market Index.
It follows a free-float market capitalisation-based weighting system, with individual stock weights capped at 20 percent, said the report.
The base date for the index is October 1, 2021, set at 1,000 points.
Among the constituents, Zomato holds the highest weight at 20.3 percent, followed by Info Edge at 18.83 percent and PB Fintech at 16.72 percent.
Other major companies include Paytm (One 97 Communications), Nykaa (FSN E-Commerce Ventures), and IRCTC, each contributing 7-8 percent, while Angel One, Motilal Oswal, Swiggy, and IndiaMART InterMESH have weights below 5 percent, the report said.
Sector-wise, Consumer Services dominate the index at 65.32 percent, followed by Financial Services at 33.48 percent and Media, Entertainment & Publication at 1.21 percent.
The index will undergo a semi-annual review in March and September, based on six-month average data ending in January and July.
Quarterly screenings will ensure compliance with SEBI’s portfolio concentration norms for ETFs and index funds, with corrective measures applied if required.
Additionally, NSE Indices may conduct ad-hoc rebalancing in response to stock suspensions, delistings, or corporate restructuring, the Moneycontrol report said.
Despite falling 18.87 percent year-to-date as of February 14, the index has recorded a 26.65 percent gain over the past year.
It trades at a price-to-earnings ratio of 89.07 and a price-to-book value of 7.13, with a dividend yield of 0.22 percent.
With a focus on digital and e-commerce businesses, the index provides investors with exposure to India’s rapidly expanding internet economy.
On the same day, the Sensex and Nifty saw a sharp decline of nearly 2 percent, driven by broad-based selling amid growing fears of a global trade war and concerns over a slowing U.S. economy.
All 13 major sectoral indices ended deep in the red, with the BSE Smallcap and BSE Midcap indices slipping 2.5 percent and 3 percent, respectively.
Market sentiment remained weak, with 908 stocks hitting a 52-week low, leading to a Rs 8.8 lakh crore wipeout in market capitalisation.
Tata Motors emerged as the biggest Nifty loser, tumbling 4 percent to Rs 623.
Other major decliners included ACC, Aarti Drugs, Aarti Industries, 5paisa, Utkarsh Small Finance Bank, ABB India, 3M India, and Timken.
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