The weight of each stock in the
index will be on the basis of a combination of stock's quality score and its
free float market capitalization
India
Index Services & Products Limited (IISL), a subsidiary of the National
Stock Exchange (NSE), on Wednesday launched Nifty 200 Quality 30 index, which will
track the performance of select companies on the basis of their 'quality'
scores, (IISL) said in a statement.
The
quality score for each company will be decided based on return on equity,
financial leverage or debt-equity ratio, and earnings growth variability analyzed
during the earlier 5 years. The weight of each stock in the index will be
on the basis of a combination of stock's quality score and its free float
market capitalization (M-Cap).
The
launch of Nifty-200 Quality 30, together with the existing suite of Nifty smart
beta indices strengthens the commitment of the National Stock Exchange towards
developing the passive fund management space.
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