NSE’s index services subsidiary, NSE Indices has launched a new thematic index called Nifty India Tourism which will track the performance of stocks in Nifty 500 index representing the travel and tourism theme.
The base date for the index is April 1, 2005 and the base value is 1,000. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.
The index comprises 17 stocks including the likes of InterGlobe Aviation (Indigo), Indian Railway Catering and Tourism Corporation (IRCTC), Easy Trip Planners, GMR Airports Infrastructure, Devyani International, Jubilant Foodworks, Safari Industries (India), V.I.P. Industries and Mahindra Holidays & Resorts India among others.
In a media communique, NSE outlined its rationale behind the launch stating the government’s focus on the travel and tourism sector.
“India is a leading country in terms of international tourism expenditure. Travel and tourism are two of the largest industries in India, with a total contribution of about $199.6 billion to the country’s GDP,” reads the release.
Highlights
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The index has a base date of April 01, 2005, with a base value of 1000.
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Stocks part of the Nifty 500 index at the time of review are eligible for inclusion in the index.
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Stocks forming part of the eligible basic industries shall be eligible to be included from the universe at the time of review.
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The index comprises of a maximum of 30 stocks.
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The weight of each stock in the index is based on free float market capitalization.
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The index is reconstituted semi-annually and rebalanced quarterly.
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Stock weights are capped at 20%.