NSE Introduces NIFTY India Tourism Index

On Tuesday, NSE Indices Ltd., a subsidiary of the National Stock Exchange Ltd., launched a new thematic index called Nifty India Tourism. This index is designed to monitor the performance of stocks related to the travel and tourism sector from the Nifty 500. Currently, this index comprises 17 stocks, Nifty India Tourism will undergo semi-annual reconstitution and quarterly rebalancing. NSE specified that it has a base date of April 1, 2005, with a base value set at 1,000, as per their statement.

Eligibility Criteria 

Stocks eligible for inclusion in the Nifty 500 during the review period will be considered for inclusion in the index. Additionally, stocks from eligible basic industries can also be included during the review. The index will consist of a maximum of 30 stocks, with each stock’s weight capped at 20%, determined by its free-float market capitalization.

NIFTY India Tourism Index Top Constituents

Conclusion: The Nifty India Tourism Index can be used for a variety of purposes such as benchmarking fund portfolios, launching index funds, ETFs, and structured products. the launch of the Nifty India Tourism Index by NSE Indices Ltd. marks a significant development in tracking the performance of the travel and tourism sector within the Nifty 500. By including up to 30 stocks and capping individual stock weight at 20% based on free-float market capitalization, the index aims to provide a comprehensive and balanced representation of the industry.