On Oct. 22, NCDEX unveiled NDEX and FINNDEX, two rule‑based equity indices that will be priced in real time during market hours. NDEX selects 20 large, liquid NSE‑listed companies from a universe of 60, while FINNDEX covers 15 financial sector stocks, excluding insurers, from the top 40 eligible firms.
The composite score that feeds both indices blends free‑float market cap (30%), average daily traded value (30%), beta (20%) and volatility (20%). Final weights split the free‑float market‑cap contribution and composite score equally, capping each constituent at 15% during every rebalancing.
Ownership of the indices rests with NCDEX, but calculation and maintenance are handled by NSE Indices Ltd. Rebalancing occurs twice a year—in March and September—with ad hoc adjustments permitted under specified circumstances.
Vikas Goel, managing director and CEO of NCDEX, described the launch as a milestone in the exchange’s shift toward a multi‑segment platform. Tojo Banerjee, chief of equity business, highlighted that the indices go beyond market cap, incorporating factors that influence company behaviour, and that FINNDEX will broaden exposure to non‑banking financial firms and fintech.
Analysts view the new indices as a strategic move to increase NCDEX’s footprint in the equity space, potentially driving more liquidity into the underlying stocks and enhancing derivative trading opportunities. The indices’ base value of 10,000 and biannual review schedule should provide a stable benchmark for investors and traders alike.