India Index Services & Products (IISL), an NSE Group entity, has launched a new Nifty Index to measure the performance of small and medium enterprises listed on the dedicated NSE platform for small companies.
The Nifty SME Emerge Index reflects the performance of a portfolio of eligible companies listed on the Emerge. The index represents about 62 per cent of the full market capitalisation of all SMEs listed on the Emerge.
The launch comes on a day when NSE saw the listing of its 100th SME today. As against this, the rival BSE's similar platform has over 200 companies listed on the exchange.
"The index is a well-diversified basket of SMEs spread across 14 sectors with services, IT and consumer goods as top three sectors by weight," IISL chief executive Mukesh Agarwal said in a statement.
"As the number of SMEs listed on the Emerge increases, we'll launch more variants of SME indices to meet the needs of various investors," he added.
Since inception in December 2016, the index has given 39 per cent return as of November 15, 2017.
The index will be calculated and published on an end- of-the-day basis and will cater to the benchmarking needs of investors seeking to track the performance of SMEs listed on the Emerge.