-New Delhi: India Index Services & Products Ltd (IISL), an arm of National Stock Exchange (NSE), on Tuesday launched a new index to track market performance of private sector banks in India.
The index - Nifty Private Bank - will track 10-largest private sector banks listed on the NSE.
"The index will complement the existing Nifty Bank and Nifty PSU Bank indices and provide the investors with gamut of banking sector indices catering to different investment needs," IISL CEO Mukesh Agarwal said in a statement.
Nifty Private Bank index is calculated using free float market capitalisation method and stock weights are capped at 25 per cent.
The base date of this index is April 1, 2005 and base value is 1,000. The index will be maintained by IISL and calculated on an end-of-day basis.
The new index will be available for licensing for the launch of financial products such as exchange traded fund and structured products.
IISL was setup in May 1998 to provide a variety of indices and index related services for the capital markets. It maintains more than 100 equity indices comprising broad-based benchmark indices, sectoral indices and customised indices.
Also, it maintains fixed income indices based on Government of India bond.