BSE Nifty FMCG

The Nifty FMCG Index tracks the performance of Indian companies in the Fast-Moving Consumer Goods (FMCG) sector. It includes businesses involved in producing, marketing, and distributing essential consumer products like food, beverages, personal care, and household items. The index serves as a benchmark for analysing sector trends, investor sentiment, and market movements. FMCG companies are known for steady demand, strong brand value, and resilience to economic fluctuations. Their defensive nature makes them attractive for long-term investors seeking consistent returns with lower volatility in diverse market conditions.

The NIFTY FMCG Index is a sectoral benchmark on the National Stock Exchange (NSE) that tracks the performance of India's fast-moving consumer goods sector. It comprises 15 listed companies dealing in non-durable, mass-consumed products like food, beverages, personal care, and household items. Launched on 22nd September 1999, with a base value of 1,000, it has since surpassed 40,000 levels. The index is reviewed semi-annually to reflect industry trends and is managed by NSE Indices Limited. It follows a three-tier governance structure, ensuring its accuracy in representing the evolving FMCG market.

The NIFTY FMCG Index is calculated based on the free-float market capitalisation of its 15 constituent stocks, periodically capped and updated in real time. To be included, a stock must be listed on NSE, part of NIFTY 500, and belong to the FMCG sector. It must have a trading frequency of at least 90% over six months and a listing history of at least six months. IPOs can qualify after three months. The index maintains stock caps of 33% for a single stock and 62% for the top three stocks combined at rebalancing. It ensures sector representation while reflecting market dynamics.

The NIFTY FMCG Index value is determined using the formula: Index Value = Current Market Capitalisation / (Base Market Capitalisation × Base Index Value). It undergoes a semi-annual review based on six months of data, with cut-off dates set for 31st January and 31st July. Any changes in stock composition are implemented on the last trading day of March and September, following a four-week prior notice to the market. This structured approach ensures the index accurately reflects evolving market trends and maintains its relevance in tracking the performance of India's FMCG sector.