Description

NSE introduces the Nifty500 Flexicap Quality 30 index and its Total Returns variant for tracking top quality stocks across market capitalizations, available for benchmarking and derivative products.

Summary

NSE has announced the dissemination of the Nifty500 Flexicap Quality 30 index in the Futures and Options segment. The index tracks the performance of top 10 quality stocks each from Nifty100 Quality 30, Nifty Midcap150 Quality 50, and Nifty Smallcap250 Quality 50, selected based on six-month average free-float market capitalization. The index launched on April 04, 2025, with a base date of October 01, 2009, and base value of 1000.

Key Points

  • Index comprises 30 equally weighted constituents across large, mid, and small cap segments
  • Semi-annual reconstitution with quarterly rebalancing based on cut-off dates of May 31 and November 30
  • Total Returns Index variant also available for tracking
  • Top sectors: Information Technology (29.67%), Financial Services (23.44%), FMCG (16.84%)
  • Current fundamentals: P/E ratio of 29.28, P/B ratio of 5.57, Dividend Yield of 1.7%
  • As of September 30, 2025: YTD return of -13.36% (price), -12.22% (total return)
  • Can be used for benchmarking portfolios, launching index funds, ETFs, and structured products
  • Four weeks prior notice provided for any changes

Regulatory Changes

No regulatory changes mandated. This is an informational circular announcing the availability of a new index for market participants.

Compliance Requirements

No compliance requirements. Market participants may voluntarily use this index for:

  • Benchmarking fund portfolios
  • Launching index funds and ETFs
  • Creating structured products
  • Derivative product development

Important Dates

  • Launch Date: April 04, 2025
  • Base Date: October 01, 2009
  • Semi-Annual Review Cut-off Dates: May 31 and November 30 annually
  • Factsheet Date: September 30, 2025
  • Notice Period: Four weeks prior to any index changes

Impact Assessment

Market Impact: Medium - Provides new benchmarking and investment product opportunities focusing on quality stocks across market capitalizations. The equal-weighted methodology and flexicap approach offers diversification benefits.

Operational Impact: Low - No mandatory changes required for existing operations. Asset managers and product issuers may choose to develop products based on this index.

Investor Impact: The index’s quality focus combined with flexicap allocation could appeal to investors seeking balanced exposure to high-quality companies across market caps. Recent negative performance (-17.98% over 1 year) may present entry opportunities for long-term investors, though the index shows strong 5-year CAGR of 20.57%.

Impact Justification

New index dissemination enables benchmarking and potential derivative products but does not mandate immediate action from market participants