Description

NSE launches Nifty Conglomerate 50 Index tracking top 50 stocks from Nifty 500 representing India's major conglomerates, with quarterly rebalancing and sector-based diversification.

Summary

NSE has introduced the Nifty Conglomerate 50 Index, launched on September 01, 2025, to track the performance of 50 stocks from the Nifty 500 Index representing India’s major conglomerates. The index uses a periodic capped free float methodology with a base date of April 01, 2005 (base value: 1000). It can be used for benchmarking fund portfolios and launching index funds, ETFs, and structured products. The index variant includes the Nifty Conglomerate 50 Total Returns Index.

Key Points

  • Comprises 50 largest stocks from each Indian conglomerate group in Nifty 500 based on 6-month average free float market capitalization
  • Conglomerate group weight capped at 23% and individual stock weight capped at 10%
  • Quarterly rebalancing in March, June, September, and December
  • Top sectors: Financial Services (15.91%), Automobile and Auto Components (13.56%), Metals & Mining (12.66%), Information Technology (12.51%)
  • Top constituents: Larsen & Toubro (10.02%), Reliance Industries (10.00%), Mahindra & Mahindra (8.20%), TCS (8.11%), Bajaj Finance (6.49%)
  • Calculation frequency: End of Day
  • As of December 31, 2025: P/E ratio 29.31, P/B ratio 3.97, Dividend Yield 1.03%

Regulatory Changes

No regulatory changes mandated. This is an informational circular regarding a new index product offering.

Compliance Requirements

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

  • Benchmarking fund portfolios
  • Launching index funds
  • Creating ETFs (Exchange Traded Funds)
  • Developing structured products

Important Dates

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

Impact Assessment

Market Impact: Medium - The index provides a new benchmarking tool for India’s conglomerate sector, offering diversified exposure across 20 sectors. With 1-year returns of 10.40% (Price Return) and 11.28% (Total Return), it presents an attractive investment proposition.

Operational Impact: Low - No immediate operational changes required for market participants. Asset managers and product issuers may evaluate this index for new product launches.

Investment Implications: The index offers concentrated exposure to India’s largest business groups with built-in diversification through sector representation and capping rules, reducing concentration risk while maintaining conglomerate focus.

Impact Justification

New index product for benchmarking and investment products; provides diversified exposure to conglomerate stocks but does not mandate immediate action from market participants