In fact, there a large number of indices which are essentially offshoots of the Nifty 50 and serve different purposes. Let us look at some of these index variants

NIFTY50 USD:

NIFTY50 USD, a dollar linked variant of NIFTY 50 index has been constructed as an instrument for measuring returns on their equity investment in the US dollar terms. NIFTY50 USD is NIFTY 50, measured in dollars.

Index value calculation:

Closing value of NIFTY 50 * Exchange rate as on base date/ Exchange rate for the day

Base date of NIFTY50 USD is same as NIFTY 50 i.e. November 3, 1995 and the base index value is 1000 points Exchange rate as on base date: 34.65

Effective April 3, 2017, WM/Reuters 4 pm FX benchmark USD-INR rate on a daily basis is considered in place of ‘INR-USD’ reference rate as published by Reserve Bank of India for calculation of daily index value.

NIFTY50 Dividend Points

The NIFTY 50 Dividend Points is a running total of dividend points of the securities forming part of NIFTY 50 Index. It is worth noting that the NIFTY 50 Dividend Points is a passive representation of annual index dividend points. It is not an active index of stocks representing a quantitative dividend based investment strategy.

The index measures the total ordinary dividends paid in the securities forming part of the underlying index since the previous rebalancing date. Indexed dividend of NIFTY 50 Index is dividends paid by index constituents expressed in terms of the level of NIFTY 50 Index.

The NIFTY50 Dividend Points resets to zero every year after the close of the settlement of exchange traded derivative contracts linked to NIFTY 50 Index in the month of March every year (normally the last Thursday in March). It is done to coincide with the expiry of exchange traded derivative contracts linked to NIFTY 50 Index for the month.

The formula for calculating the dividend index on any date (t) for the NIFTY 50 Index is:

Dividend Index (t) = Previous Dividend Index Value (t-1) + Indexed Dividend (t day)

The indexed dividend of the NIFTY 50 Index is calculated by taking the summation of dividend payout (adjusted for free float) specified by index constituents divided by the index divisor on ex-dividend date.

NIFTY50 PR 1x Inverse

The NIFTY50 PR 1x Inverse index aimsto provide inverse return of its underlying index. A broader index provides good exposure to an economy, an inverse index on a broader index will provide the desired exposure when the investor is bearish on the markets.

NIFTY50 PR 1x

Inverse Index provides the investor an opportunity to create a position which gives inverse (opposite) returns as compare to NIFTY 50 PR Index. The index is designed to provide the inverse performance of the NIFTY 50 PR, representing a short position in the index

NIFTY50 PR 2x Leverage

NIFTY50 PR 2x Leverage Index is designed to generate multiple time return of the underlying index in situations where the investor borrows funds to generate index exposure beyond his/her cash position.

NIFTY50 PR 2x Leverage

The above Index seeks twice the index return on a daily basis. Index is designed to provide magnified exposure to NIFTY 50 PR Index value Index value calculation is as under:

NIFTY50 PR 2x Leverage Index Value = Previous day’s NIFTY50 PR 2x Leverage Index Value * (1+ NIFTY50 PR 2x Leverage Index Return)

NIFTY50 PR 2x Leverage Index Return = 2*((Current NIFTY 50 PR Index Value/previous day NIFTY 50 PR Index Value)-1)- (previous days TREPS rate /360)*(diff. in no. of days between today and previous trading day))

In the above case, the TREPS is an overnight rate provided through Triparty Repo Dealing System (TREPS) by Clearing Corporation of India Ltd. (CCIL).

NIFTY50 Equal Weight

NIFTY50 Equal Weight Index represents an alternative weighting strategy to its market capitalization based parent index, the NIFTY 50 Index. The index includes the same companies as its parent index, however, weighted equally

NIFTY50 Arbitrage

The NIFTY 50 Arbitrage Index aims to measure the performance of such arbitrage strategies. The index measures performance of portfolio involving investment in equity and equivalent short position equity futures, short-term debt market investments and cash

Mahima Royanswered.In fact, there a large number of indices which are essentially offshoots of the Nifty 50 and serve different purposes. Let us look at some of these index variants

NIFTY50 USD:NIFTY50 USD, a dollar linked variant of NIFTY 50 index has been constructed as an instrument for measuring returns on their equity investment in the US dollar terms. NIFTY50 USD is NIFTY 50, measured in dollars.

Index value calculation:

Closing value of NIFTY 50 * Exchange rate as on base date/ Exchange rate for the day

Base date of NIFTY50 USD is same as NIFTY 50 i.e. November 3, 1995 and the base index value is 1000 points Exchange rate as on base date: 34.65

Effective April 3, 2017, WM/Reuters 4 pm FX benchmark USD-INR rate on a daily basis is considered in place of ‘INR-USD’ reference rate as published by Reserve Bank of India for calculation of daily index value.

NIFTY50 Dividend PointsThe NIFTY 50 Dividend Points is a running total of dividend points of the securities forming part of NIFTY 50 Index. It is worth noting that the NIFTY 50 Dividend Points is a passive representation of annual index dividend points. It is not an active index of stocks representing a quantitative dividend based investment strategy.

The index measures the total ordinary dividends paid in the securities forming part of the underlying index since the previous rebalancing date. Indexed dividend of NIFTY 50 Index is dividends paid by index constituents expressed in terms of the level of NIFTY 50 Index.

The NIFTY50 Dividend Points resets to zero every year after the close of the settlement of exchange traded derivative contracts linked to NIFTY 50 Index in the month of March every year (normally the last Thursday in March). It is done to coincide with the expiry of exchange traded derivative contracts linked to NIFTY 50 Index for the month.

The formula for calculating the dividend index on any date (t) for the NIFTY 50 Index is:

Dividend Index (t) = Previous Dividend Index Value (t-1) + Indexed Dividend (t day)

The indexed dividend of the NIFTY 50 Index is calculated by taking the summation of dividend payout (adjusted for free float) specified by index constituents divided by the index divisor on ex-dividend date.

NIFTY50 PR 1x InverseThe NIFTY50 PR 1x Inverse index aimsto provide inverse return of its underlying index. A broader index provides good exposure to an economy, an inverse index on a broader index will provide the desired exposure when the investor is bearish on the markets.

NIFTY50 PR 1xInverse Index provides the investor an opportunity to create a position which gives inverse (opposite) returns as compare to NIFTY 50 PR Index. The index is designed to provide the inverse performance of the NIFTY 50 PR, representing a short position in the index

NIFTY50 PR 2x LeverageNIFTY50 PR 2x Leverage Index is designed to generate multiple time return of the underlying index in situations where the investor borrows funds to generate index exposure beyond his/her cash position.

NIFTY50 PR 2x LeverageThe above Index seeks twice the index return on a daily basis. Index is designed to provide magnified exposure to NIFTY 50 PR Index value Index value calculation is as under:

NIFTY50 PR 2x Leverage Index Value = Previous day’s NIFTY50 PR 2x Leverage Index Value * (1+ NIFTY50 PR 2x Leverage Index Return)

NIFTY50 PR 2x Leverage Index Return = 2*((Current NIFTY 50 PR Index Value/previous day NIFTY 50 PR Index Value)-1)- (previous days TREPS rate /360)*(diff. in no. of days between today and previous trading day))

In the above case, the TREPS is an overnight rate provided through Triparty Repo Dealing System (TREPS) by Clearing Corporation of India Ltd. (CCIL).

NIFTY50 Equal WeightNIFTY50 Equal Weight Index represents an alternative weighting strategy to its market capitalization based parent index, the NIFTY 50 Index. The index includes the same companies as its parent index, however, weighted equally

NIFTY50 ArbitrageThe NIFTY 50 Arbitrage Index aims to measure the performance of such arbitrage strategies. The index measures performance of portfolio involving investment in equity and equivalent short position equity futures, short-term debt market investments and cash