NSE Introduces Nifty India Internet & E-Commerce Index

Key Facts:

National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges in India, based in Mumbai.

It is the 7th largest stock exchange in the world by total market capitalization.

NSE is the world’s largest derivatives exchange by number of contracts traded for the fifth consecutive year

Prime Highlights:

NSE Indices has launched the Nifty India Internet & E-Commerce Index to track companies operating primarily through online platforms.

The index includes companies from the Nifty Total Market, focusing on digital and e-commerce businesses.

Key Background:

The National Stock Exchange (NSE), through its subsidiary NSE Indices, has launched the Nifty India Internet & E-Commerce Index, a new thematic index aimed at tracking the performance of companies that primarily operate through online platforms. The index is part of the Nifty Total Market and includes businesses engaged in internet-based operations across various sectors.

Designed to serve as a benchmark for asset managers, the index is also expected to be a reference point for passive investment vehicles such as Exchange Traded Funds (ETFs), index funds, and structured products. Stock weights within the index are determined based on free-float market capitalization, with a cap of 20% on the weight of any individual stock. The index’s base date is set at October 1, 2021, with an initial value of 1000. It will undergo semi-annual reconstitution and quarterly rebalancing to reflect changes in the market.

The index delivered a total return of 26.91% over the past year and a compound annual growth rate (CAGR) of 5.11% since its inception. The index’s composition is heavily skewed towards Consumer Services (65.32%) and Financial Services (33.48%), with a smaller proportion from Media, Entertainment & Publication (1.21%).

Notable constituents of the index include leading players in India’s digital economy, such as Zomato (20.30%), Info Edge (India) (18.83%), PB Fintech (16.72%), One 97 Communications (7.90%), and FSN E-Commerce Ventures (7.38%), reflecting the growing prominence of e-commerce and internet-driven businesses in the country.