NSE Launches Its Tourism Index-Check The Components

On June 18th, 2024, the National Stock Exchange(NSE) subsidiary, NSE Indices Limited launched their new thematic Index named Nifty India Tourism Index.

Let’s understand the functioning and components of this NSE index.

What Does This Index Mean?

The Nifty India Tourism Index aims to track the performance of stocks from the Nifty 500 Index, representing the travel and tourism theme. The largest 30 stocks from eligible basic industries are selected based on a 6-month average free-float market capitalization, as highlighted on the Nifty Indices Website.

Which Sectors Does This Index Cater To?

Nifty India Tourism Index will cater to the following sectors:

• Airline
• Restaurants
• Hotel & Resorts
• Airport & Airport services
• Tour, Travel Related Services
• Amusement Parks/Other Recreation

Apart from the above basic industries, companies that manufacture trolley bags, suitcases, and luggage are eligible to be included in the index.

Important Properties Of this Index.

• The index has a base date of April 01, 2005, with a base value of 1000.
• Stocks part of the Nifty 500 index at the time of review are eligible for inclusion.
• Stocks forming part of the eligible basic industries shall be eligible to be included in the universe at the time of review.
• The index comprises a maximum of 30 stocks.
• The weight of each stock in the index is based on free-float market capitalization.
• The index is reconstituted semi-annually and rebalanced quarterly.
• Stock weights are capped at 20%.

Which Companies Are Currently Included?

The Index tracks a maximum of 30 companies from the Nifty 500 that are most significant in the travel and tourism industry which are the listed shares in nse. Currently, it comprises the following stocks with a weightage based on their periodic capped free-float market capitalization.

Not a single stock can be more than 20% in weightage, ensuring a sufficient diversification of stocks.

What Does It Mean For Investors?

This index is a landmark development for the Indian Tourism Industry. With rising disposable incomes in Indian households,we can expect significant investments in this sector giving a boost to the travel industry as well as increased trade for the NSE Indices Limited.

How NSE Is Expanding By Introducing New Indices?

The NSE has been releasing new indices into the market. On April 24, they launched 4 new Indices namely Nifty Tata Group, Nifty MidSmall Healthcare, Nifty500 Multicap Infrastructure, and Nifty500 MultiCap India Manufacturing. (Read more by clicking here.)

Now with this tourism index, NSE is trying to cover a wider base of industry-specific investors and help them with tracking and investing through NSE.

This competition has increased due to BSE coming up with different products in the F &O segment. Such index additions will lead to better competition by the NSE and increase NSE's market share.

How Can You Invest In NSE Shares?

The nse stock price has been skyrocketing since last year from Rs 3700 on Jun 23 to Rs 6200 per share on June 24.This surge comes near the announcement of Financial results for FY 23-24, which led to an increase in trading activity of the share.

The Average daily volumes and healthy financials suggest a strong positive sentiment in the eyes of investors. Unlike the BSE and MCX, NSE is an unlisted share in India. But you can buy and sell NSE shares in the unlisted market. After a 4:1 bonus NSE is now trading around Rs 1200 per share.

Stockify is India’s most trusted online unlisted shares brokerage firm that provides access to trending unlisted shares with their complete financial reports in different fiscal years. Here, you will get the updated NSE unlisted share price with financial metrics like EBITDA ratio, revenue, PAT, etc.

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