NIFTY COMMODITIES (NIFTY COMMODITIES) live share price today at NSE

What is the Nifty Commodities Index?

The Nifty Commodities Index is a thematic index of the National Stock Exchange (NSE). It was constituted on 7th September 2011 with a base value of 1000 and a base date of 1st January 2004. 

The main objective of the Nifty Commodity Index is to track the performance of the NSE-listed companies that represent the commodity segment of the market. This index is a real-time performance evaluator of India’s commodity markets. 

The Nifty Commodity Index consists of 30 stocks representing the 6 industries of the Indian commodity segment. These sectors include oil, gas, and consumable fuels (28.27%), metal and mining (24.35%), power (21.48%), construction material (16.98%), chemicals (7.35%), and capital goods (1.58%).

The NSE Indices Limited (previously known as India Index Services & Products Limited), a wholly owned subsidiary of NSE, is responsible for operating and managing the Nifty Commodity Index. The index is governed through a tier structure, which includes the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee. 

• The Nifty Commodities Index falls under the thematic index category of the National Stock Exchange (NSE). 
• It comprises of 30 companies that represent the commodity segment of the market. 
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Nifty Alpha 50 Index - Selection Criteria

1. The company must be domiciled in India. 
2. Companies should form part of the Nifty 500 at the time of review. In case the number of eligible stocks representing a particular sector within the Nifty 500 falls below 10, then the deficit number of stocks shall be selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of Nifty 500.
3. As of the cutoff date, companies must have a listing history of at least 1 month and a trading frequency of 90% in the last six months. 
4. The final selection of the 30 companies is based on their free-float market capitalisation. 

The Nifty Commodity index is also subject to a semi-annual basis, with the cutoff date being 31st January and 31st July. To rebalance the index, the average date of the last six-month period ending on the cutoff date is considered. Also, at the time of rebalancing, a capping of 10% is applied to changes in index constituents, changes in investible factors, and constituent weightage. 

Nifty Commodities Index - Formula & Calculation

To provide a real-time and accurate picture of the Indian commodity markets, NSE Indices Limited ensures that the index is calculated using the most reliable values and methods. The Nifty Commodity Index is calculated using the free-float market capitalisation method. To calculate the value of the index, the following formula is used:

Nifty Commodities Index Formula = Current index market capitalisation / (base market cap * base index value)

Here,

Current index market cap = Shares outstanding * IWF * Capping Factor * Price 

Free float = The Amount of outstanding shares available for secondary trading

IWF (Investible Weight Factor) = 1 (because it is based on the market capitalisation)

Key Takeaways on Nifty Commodities Index  

• The Nifty Commodities Index consists of 30 NSE-listed companies and tracks the performance and behaviour of the Indian commodity segment. 
• It covers 6 sectors: oil, gas and consumable fuels, metal and mining, power, construction material, chemicals, and capital goods.
• The NSE Indices Limited operates and manages the Commodities index under the Nifty brand name.
• The index is calculated based on the free-float market capitalisation method and has a capping of 10% on rebalancing.