Mumbai, April 9: Aniruddha Chatterjee, CEO of NSE Index Limited, stated on Thursday that the exchange’s index strategy is increasingly focusing on derivative-linked stocks and new methodologies, including products like the Nifty India FPI 150 Index.
During a press interaction at an event, Chatterjee emphasized that utilizing derivatives in index construction is not a new approach for the exchange, as it has incorporated such strategies into its offerings over the years.
He noted, “About four to five years ago, the exchange made a strategic decision to prioritize shares from the futures and options (F&O) segment while developing sectoral indices.”
Chatterjee further explained that a comprehensive strategy shift was announced last November, with implementation beginning in December. One of the key indices affected by this change was the Nifty Bank, also known as Bank Nifty.
“This transformation involved extensive consultations with industry stakeholders and was initiated in coordination with the Securities and Exchange Board of India (SEBI),” Chatterjee remarked.
Discussing the new product, he described the recently launched Nifty India FPI 150 Index as a significant step in expanding the exchange’s index ecosystem.
He stated, “This index introduces a unique foreign investment factor for determining stock weights, making it easier for foreign portfolio investors to replicate investment strategies.”
Chatterjee added that this launch is part of a broader plan to develop a new series of indices that cater to the changing needs of investors.
He concluded, “The exchange intends to introduce more such products in the future, drawing insights from three decades of experience in internal analysis and index construction.”
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