Nifty Metal (NIFTY METAL) live share price today at NSE

Nifty Metal Index - An Introduction

The Nifty Metal Index is a sectoral index of the National Stock Exchange (NSE). The index tracks and captures the overall performance of India’s metal sector (including mining) in real-time. The Nifty Metal index is made up of a maximum of 15 listed equity shares from the metal sector. 

The Nifty Metal index was launched on 12th July 2011, with a base date of 1st January 2004 and a base index value of 1000. NSE Indices Limited, a wholly owned subsidiary of NSE, is responsible for owning and managing the market indices under the Nifty brand. 

The Nifty Metal stocks include 15 companies such as Jindal Stainless Steel,  Steel Authority of India, APL Apollo Tubes, NMDC, and many others. All these index stocks represent the metal sectors of India (including mining). 

Nifty Metal Share Price Formula & Calculation 

The Nifty Metal Index is calculated using the free float market capitalisation method. Using the method, the resultant Nifty Metal share price represents the aggregate free float market cap of all its constituents. 

Nifty Metal Index Formula - Free float market capitalisation of the index / (base index value * base market cap)

Here, 

Base index value = 1000

Free float market cap = shares outstanding * IWF * capping factor * price 

Free float = Shares freely available for trading in secondary markets

IWF = Investible weight factor

The Nifty Metal index is subjected to semiannual review on 31st January and 31st July of each year. For the rebalancing of the index, the average data for the six months ending the cut-off date is considered. 

Nifty Metal Stocks - Eligibility Criteria

1. 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 Nifty 500 falls below 10, the remaining shall be selected from the securities ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on the previous six-month period data used for index rebalancing of Nifty 500.
2. Companies must form a part of the metal sector. 
3. The company’s trading frequency must be at least 90% in the last six months. 
4. The minimum listing history of a company must be at least 1 month. 
5. The final selection of Nifty Metal stocks is done on the full market capitalisation method. 
6. The weightage of each stock is capped at 33%, and the weightage of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing. 

What are Nifty Metal Index Returns?

The Nifty Metal Index has yielded over 10.91% price returns since its inception. Over the past 5 years and 1 year, the index has given 37.36% and -5.45% returns. The total returns of Nifty Metal for the past 5 years are 13.04%, whereas the 1-year and all-time price returns are 39.31% and -4.78%. 

Key Takeaways on Nifty Metal Index

1. The Nifty Metal Index is a thematic index of the National Stock Exchange (NSE). It comprises 15 NSE-listed stocks from India’s metal sector. 
2. This index focuses on capturing the real-time performance and behaviour of the metal sector (including mining). 
3. The Nifty Metal was launched on 12th July 2011 with a base date and index value of 1st January 2004 and 1000, respectively.