New Delhi

NCDEX, formerly known as National Commodities and Derivatives Exchange, on Thursday launched two rule-based equity indices, NDEX and FINNDEX, marking its entry into the equity and equity derivatives markets.

The indices use a multi-factor approach to stock selection and weighting, combining free-float market capitalisation (30 per cent), average daily traded value (30 per cent), beta (20 per cent) and volatility (20 per cent), NCDEX said in a statement.

NDEX comprises 20 large, liquid Indian equities selected from the top 60 NSE-listed companies, while FINNDEX tracks 15 financial-sector stocks, excluding insurance companies, selected from the top 40 eligible companies.

These indices, owned by NCDEX Ltd, will be calculated and maintained by NSE Indices Ltd. They will be reviewed and rebalanced twice a year, in March and September, with each stock capped at a 15 per cent weight, it added.

Their base month is January 2010, with a base value of 10,000. Index values will be disseminated in real time during market hours. “With these indices, we aim to contribute to the development of market infrastructure that supports informed investment decisions, strengthens the range of tools available to market participants and reinforces India’s position as an increasingly important destination for global capital,” said Vikas Goel, MD and CEO at NCDEX.