Description

Introduction of Nifty Conglomerate 50 Index tracking performance of 50 stocks from Nifty 500 representing India's major conglomerates, available for derivatives trading.

Summary

NSE has disseminated information about the Nifty Conglomerate 50 Index in the Futures and Options Segment. The index tracks performance of 50 stocks from Nifty 500 representing India’s major conglomerates. Launched on September 01, 2025, with base date April 01, 2005 (base value 1000), it uses periodic capped free float methodology with quarterly rebalancing. The index can be used for benchmarking, index funds, ETFs, and structured products.

Key Points

  • Index comprises 50 largest stocks from Nifty 500 representing major Indian conglomerate groups
  • Selection based on 6-month average free float market capitalization
  • Conglomerate group weight capped at 23%, individual stock capped at 10%
  • Quarterly rebalancing in March, June, September, and December
  • Top holdings: Larsen & Toubro (10.02%), Reliance Industries (10.00%), M&M (8.20%), TCS (8.11%)
  • Sector concentration: Financial Services (15.91%), Automobile (13.56%), Metals & Mining (12.66%), IT (12.51%)
  • As of December 31, 2025: P/E ratio 29.31, P/B ratio 3.97, Dividend Yield 1.03%
  • YTD return: 11.28% (Price Return), 18.12% (Total Return)
  • Total Returns Index variant available

Regulatory Changes

No regulatory changes. This is an informational circular about a new index product available for derivatives trading in the F&O segment.

Compliance Requirements

No specific compliance requirements for market participants. The circular provides factsheet information for reference purposes only.

Important Dates

  • Launch Date: September 01, 2025
  • Base Date: April 01, 2005
  • Index Rebalancing: Quarterly (March, June, September, December)
  • Data as of: December 31, 2025

Impact Assessment

Market Impact: Medium - Provides new benchmarking and investment product opportunities for conglomerate-focused portfolios. Enables launch of derivative contracts, index funds, ETFs, and structured products based on conglomerate stocks.

Investor Impact: Offers diversified exposure to India’s major business houses through a single index, with built-in concentration limits preventing excessive exposure to any single group or stock.

Trading Impact: Creates potential for new F&O instruments, improving market depth and liquidity for conglomerate stocks. The quarterly rebalancing frequency provides predictability for index-tracking strategies.

Impact Justification

New index product offering diversification across conglomerate stocks, enables new derivative instruments and investment products but limited immediate trading impact