India Index Services and Products (IISL), a group company of the National Stock Exchange (NSE), on Friday announced revision in the stock selection criteria and renaming of NIFTY Free float Midcap 100 and NIFTY Free float Smallcap 100 indices.
Apart from renaming indices, IISL has announced closure of NIFTY Full Midcap 100 and NIFTY Full Smallcap 100 index with effect from April 2, 2018. “Effective April 2, 2018, NIFTY Free float Midcap 100 and NIFTY Free float Smallcap 100 indices will be renamed as NIFTY Midcap 100 and NIFTY Smallcap 100 respectively,” said IISL in a press release.
IISL said that in order to align with industry best practices, it has made revision in stock selection criteria by renaming and removing indices. Currently, companies within the range of 75th to 90th percentile based on average free float market capitalisation are ranked in the descending order of average daily turnover for the last six months for final selection of 100 companies.
After the revision, index will constitute all the companies from NIFTY Midcap 50 and the remaining 50 companies will be selected based on average daily turnover from NIFTY Midcap 150 index. “Revision in stock selection criteria may result into a one-time change in the composition of these indices. There shall be no change in the historical values of these indices,” added IISL. FE