On 22 October 2026, the National Commodities and Derivatives Exchange (NCDEX) launched NDEX and FINNDEX, two rule-based equity indices, in New Delhi. The launch extended NCDEX’s activities beyond its traditional focus on agricultural commodities into equity and equity derivatives markets.
Composition of NDEX and FINNDEX
NDEX comprises 20 large and liquid Indian equities selected from the top 60 companies listed on the National Stock Exchange (NSE). FINNDEX tracks 15 financial-sector stocks, excluding insurance companies, selected from the top 40 eligible companies. An equity index measures the performance of a selected group of shares using a defined method for selecting and weighting its constituents.
Selection and weighting methodology
Both indices use a multi-factor approach that combines four measures: free-float market capitalisation at 30%, average daily traded value at 30%, beta at 20% and volatility at 20%. These weights together account for 100% of the selection and weighting framework. Free-float market capitalisation is based on shares available for public trading, rather than all shares issued by a company. Average daily traded value measures the value of shares traded per day over a specified period. Beta measures a stock’s sensitivity to movements in a broader market benchmark, while volatility measures the variation in its price over time.
Ownership, review and index values
NCDEX Ltd owns NDEX and FINNDEX, while NSE Indices Ltd calculates and maintains them. The indices are reviewed and rebalanced twice a year, in March and September, and an individual stock cannot exceed a 15% weight. Their base month is January 2010, and their base value is 10,000. Index values are disseminated in real time during market hours.
Important Facts for Exams
- NDEX contains 20 equities selected from the top 60 NSE-listed companies.
- FINNDEX covers 15 financial-sector stocks and excludes insurance companies.
- The four methodology weights are 30%, 30%, 20% and 20%.
- The indices have a January 2010 base month and a base value of 10,000.
NCDEX Ltd owns the indices, and NSE Indices Ltd is responsible for their calculation and maintenance. Both indices have a maximum individual stock weight of 15%.
