NSE announces rebranding of all indices
CNX Nifty will now become ‘Nifty 50’, Nifty Junior will become 'Nifty Next 50', CNX IT will be called 'Nifty IT' etc
On
this very auspicious day of Dhanteras, India’s largest stock exchange
NSE wishes all of you a very Happy Diwali. Today onwards
entire family of indices from NSE’s group company – India Index
Services & Products Limited (IISL), will be rebranded, with a prefix
NIFTY and some changes in names to make it more significant and
meaningful.
In just 20 years since its inception on November
03, 1995, NIFTY 50 has become synonymous with the Indian equity market
both domestically and internationally.
NIFTY 50 options traded on NSE
are the largest traded contract globally in equity index options
category. In addition to NSE, NIFTY 50 derivatives
are also traded on Singapore Exchange Ltd., Chicago Mercantile Exchange
Inc. and Osaka Exchange Inc.
"While this is
an important indication of the attractiveness of the Indian market, it
is also a significant indication of the trust, faith and respect for the
NIFTY brand name.
It is only natural that
the name NIFTY should be the natural choice and become the umbrella
brand", said Ms Chitra Ramkrishna, MD and CEO, NSE.
While India’s benchmark CNX Nifty becomes ‘Nifty 50’, please find some moments associated with this beautiful journey below.
-
There
are 16 constituents which are ever present in Nifty 50 since inception.
At the time of inception, Nifty 50 constituents captured 62% of
turnover and 34% of full market
capitalization of the Indian equity market
-
Over
the years, market representation in terms of full market capitalization
by Nifty 50 constituents has increased to 58.5%, and in terms of
turnover representation has
been in the range of 42% to 67%.
-
IT sector was not represented at the time of inception, but as on September 30, 2015 it represents 15.7% of weight in the index
-
Since
inception, Nifty 50 has given annualized returns of 11% while having
volatility of 25.4%. Volatility in recent periods has reduced from over
24% in 10 and 15 years
period to below 19%.
-
Nifty
50 as on September 30, 2015 is trading at P/E of 22.2 and P/B of 3.2
which is lower than the high of 28.5 and 6.6 respectively observed since
1999. Average P/E and
P/B of Nifty 50 is 18.6 and 3.6 respectively.
-
In
terms of calendar year return since 1996, Nifty 50 has given more than
50% return 4 times and more than 30% return in 7 calendar years.
-
Nifty
50 is the most widely used ETF benchmark in Indian domestic market with
11 out of 34 ETF tracking the index as underlying. ETFs on Nifty 50
account for 33% of total
equity ETF AUM tracking Indian domestic markets.
-
Global
ETF providers like iShares and db x-trackers have chosen Nifty 50 Index
as a benchmark to launch ETFs on Indian markets. Out of 24 India
focused ETFs listed in international
markets, 6 are based on Nifty 50 with the total AUM of USD 1120 Mn.
-
Futures
and options contracts on Nifty 50 are widely traded on National Stock
Exchange of India Ltd. (NSE). Nifty 50 options are the most traded Index
options in the world.
In 2014 the number of contracts traded were almost a billion (0.97Bn)
-
Derivatives
on Nifty 50 Index is currently traded on 3 international exchanges,
namely; Singapore Stock Exchange, Osaka Stock Exchange amd Chicago
Mercantile Exchange. In
Singapore stock exchange, no. of contracts traded have consistently
increased from 7.5 Mn. in FY 2009-10 to 19.9 Mn in FY 2014-15.
About The National Stock Exchange of India Ltd (NSE)
In
its 20 years of existence, NSE has transformed the capital market,
based on technology, innovation, high standards of corporate governance
and management practices.
NSE's business practices and high level of
integrity have earned it the trust of the financial markets worldwide.
Besides being a platform of choice for all exchange traded financial
products in India, NSE's flagship index, Nifty50
is used extensively by investors in India and around the world as a
barometer the of Indian capital markets.
Since inception, the exchange
has been covered extensively by global media and has won many accolades
in recognition of its contribution in reforming
the Indian securities market.
RSVP:
Arindam Saha
Head – Corporate Communications
99300 19202
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