Now, NSE Quality to guide investors

Mumbai: India Index Services and Products (IISL), a group company of National Stock Exchange (NSE) on Thursday announced the launch of NSE quality 30 index, which will provide investors with an ideal benchmark around which they can build equity portfolio or plan their investment strategies. 

The NSE quality 30 index would reflect the performance of stocks of top 30 quality companies chosen from a pool of 100 large and liquid companies.

Quality companies are identified on the basis of quality score, which is based on high return on equity (RoE), low debt to equity ratio and year on year growth in profit after tax (PAT) after the last year. While many of the stocks in Nifty have been made part of the new index, stocks of some fundamentally good companies, which are not part of 50-share Nifty have also been included in the newly launched index. They include companies like Havells, Exide Industries, MRF, Cummins India, Britannia, Colgate Palmolive, Dabur, Titan and Divi’s Laboratories among others.

Notable exclusion from the index include banking sector stocks due to high debt in their balance sheets. 

“The equity ETF are seeing good growth in India. AMC would now be able to launch ETF’s based on Nifty quality 30 index, which will give investors more choices to invest in,” said Mukesh Agarwal, chief, India Index Services and Products.

AuM of equity ETF’s have grown from Rs 928 crore in March 2014 to Rs 6,200 crore till date.