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NSE announces rebranding of all indices

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National Stock Exchange, NSE, Bonds, Sale

CNX Nifty will now become ‘Nifty 50’, Nifty Junior will become 'Nifty Next 50', CNX IT will be called 'Nifty IT' etc

 MUMBAI: 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.

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