INDIA: NSE Indices Launches Nifty Midcap150 Momentum 50 Index

Wednesday August 17 2022

On 16^th August 2022, the National Stock Exchange (NSE) index services subsidiary, NSE Indices launched a new momentum factor based smart beta index – Nifty Midcap150 Momentum 50.

The Nifty Midcap150 Momentum 50 index consists of 50 companies selected from its parent Nifty Midcap 150 index based on their Normalized Momentum Score. The Normalized Momentum Score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its free-float market capitalization. Stock weights are capped at the lower of 5% or 5 times the weight of the stock in the index based only on free float market capitalization.

The base date for the index is April 01st, 2005, and base value is 1000. Index will be reconstituted and rebalanced semi-annually.

The index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.

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