NCDEX Launches Two New Equity Indices: NDEX and FINNDEX
- 23 Oct 2026
On October 22, 2026, the National Commodity and Derivatives Exchange (NCDEX) launched two equity indices named NDEX and FINNDEX, marking its expansion into the stock market.
Key Facts
- New Indices: Expanding beyond trading focused on agricultural commodities, NCDEX has developed two rule-based indices for the equity market.
- Structure of NDEX: It will measure the performance of shares of 20 large and highly traded companies selected from the top 60 companies listed on the NSE.
- Structure of FINNDEX: It includes 15 stocks from among the top 40 eligible companies in the financial sector. Insurance companies have been excluded from this.
- Selection Methodology: In both indices, free-float market capitalization and average daily turnover value are assigned weights of 30%–30%, while beta and volatility are assigned weights of 20%–20%.
- Final Weight Determination: The weight of each stock is determined by an equal proportion of weight based on free-float market capitalization and weight based on a combined multi-factor score.
- Maximum Cap: At the time of rebalancing, the weight of a single company's stock will not exceed 15%, thereby limiting the risk of high concentration.
- Ownership & Management: Both indices are owned by NCDEX Limited, while their calculation and maintenance will be performed by NSE Indices Limited.
- Review & Rebalancing: Regular reviews of both indices will take place in March and September. Under special circumstances, additional changes can also be made as per prescribed procedures.
- Base Value: The base month for both indices is set as January 2010 with a base value of 10,000.
- Real-time Updates: During market trading hours, their values will be calculated and disseminated in real time.
- Future Application: These indices can be used as an underlying base for ETFs, index funds, and future derivative products like futures and options.
