NCDEX (formerly National Commodities and Derivatives Exchange Limited) has launched two rule-based indices, NDEX and FINNDEX, marking its entry into the equity and equity derivatives markets. The launch is part of the exchange’s expansion into a broader range of market infrastructure services.
Both indices use a multi-factor methodology to select stocks and determine their weights. The framework assigns scores based on four parameters: free-float market capitalisation (30%), average daily traded value (30%), beta (20%) and volatility (20%). The methodology combines measures of company size, trading activity and sensitivity to market movements.
