NCDEX has introduced two equity benchmarks covering 20 large and liquid Indian stocks and 15 financial-sector companies, marking a major step in its transition from an agricultural commodities exchange to a multi-segment market-infrastructure provider.

NCDEX, formerly known as the National Commodity & Derivatives Exchange, has expanded its presence in India's capital markets with the launch of two equity indices, NDEX and FINNDEX. Announced on Thursday, October 22, 2026, the indices mark the exchange's entry into the equity and equity derivatives space as it seeks to diversify beyond its traditional agricultural commodities business.

The new benchmarks are designed to track selected listed companies using a methodology that combines market capitalisation, trading activity and stock volatility. The launch comes as India's capital markets continue to develop and demand grows for transparent benchmarks that can support investment decisions and future financial products.

According to the exchange, the indices are intended to broaden the tools available to market participants and strengthen NCDEX's position as a multi-segment financial-market infrastructure provider.

NDEX: Benchmark Covering 20 Large and Liquid Stocks

NDEX is designed to track 20 large and liquid Indian equities selected from a universe of the top 60 companies listed on the National Stock Exchange (NSE).

The index aims to represent companies that combine substantial market presence with active trading. By considering both company size and liquidity, the methodology seeks to create a benchmark that reflects established businesses with meaningful participation in the stock market.

The index could provide market participants with another reference point for assessing the performance of a selected group of Indian equities. Its eventual use in investment products will depend on market demand, regulatory approvals and the development of supporting financial instruments.

FINNDEX Focuses on 15 Financial-Sector Companies

FINNDEX is designed to track 15 companies from the financial sector, excluding insurance companies. The constituents are selected from the top 40 eligible companies under the index's selection framework.

The index provides a more focused view of listed financial businesses, a segment that plays an important role in India's credit growth, savings mobilisation, lending activity and capital markets.

A dedicated financial-sector benchmark could help investors and analysts compare the performance of selected financial companies with broader equity-market trends. It may also offer a foundation for future investment and derivatives products, subject to the necessary approvals.

However, because insurance companies are excluded, FINNDEX will not represent the entire listed financial-services industry.

Index Methodology Combines Four Key Factors

NCDEX has adopted a composite scoring system for selecting index constituents. The methodology combines four factors to evaluate eligible companies.

The weighting structure is as follows:

• Free-float market capitalisation: 30% — measures the market value of shares available for public trading.

• Average daily traded value: 30% — assesses the value of shares traded and provides an indication of liquidity.

• Beta: 20% — measures a stock's historical sensitivity to movements in the broader market.

• Volatility: 20% — captures the degree of fluctuation in a stock's price.

By combining these indicators, the exchange aims to account for company size, trading activity and market behaviour rather than relying on market capitalisation alone.

The methodology is intended to produce benchmarks with a balance of scale, liquidity and risk-related characteristics. Nevertheless, historical beta and volatility do not guarantee future performance, and index movements can still be affected by market-wide events and company-specific developments.

Individual Stock Weight Capped at 15%

NCDEX has introduced a maximum weight of 15% for any single constituent at each rebalancing. The cap is intended to limit excessive concentration in one company and improve diversification within the indices.

A constituent-weight limit can reduce the influence of an individual stock on the overall index. This may help prevent the performance of a benchmark from being dominated by a small number of large companies.

However, the cap does not eliminate concentration risk entirely. Index performance can still be affected by broader sector exposure, correlations between constituents and changes in market conditions.

The actual diversification achieved will depend on the composition of each index and how its constituents perform over time.

Indices to Be Rebalanced Twice a Year

NDEX and FINNDEX will undergo scheduled reviews and rebalancing twice annually, in March and September.

The exchange has also provided for ad-hoc reconstitution under specified circumstances. Such provisions can help the indices respond to changes in eligibility or other developments requiring adjustments outside the regular review cycle.

Periodic rebalancing is important because stock prices, liquidity and market capitalisation change over time. Reviewing constituents helps maintain alignment with the stated selection methodology.

For investors and financial institutions considering products linked to the indices, the transparency of the selection process and the consistency of rebalancing will be important factors to monitor.

NCDEX's Transition Into a Multi-Segment Exchange

The launch of NDEX and FINNDEX forms part of NCDEX's broader strategy to expand beyond agricultural commodities and develop a wider presence in financial-market services.

The exchange has also diversified into a mutual fund transaction platform and is preparing to broaden its operations through an equity segment.

NCDEX Managing Director and Chief Executive Officer Vikas Goel described the rollout of the two indices as an important milestone in the exchange's transition towards a multi-segment model. He also highlighted the importance of transparent and well-designed benchmarks as India's capital markets deepen and attract greater domestic and international participation.

The move could help NCDEX diversify its business activities and establish additional links with equity-market participants. Its success, however, will depend on the development of a functioning ecosystem around the new benchmarks, including regulatory clearance, trading infrastructure, participation and demand for related products.

SEBI Approval and Potential Derivatives Launch

The exchange's equity segment is expected to receive final approval from the Securities and Exchange Board of India (SEBI) in January, according to the information provided in the report.

Sources also indicated that NCDEX may introduce derivatives linked to NDEX and FINNDEX after obtaining SEBI approval in the second half of the next financial year.

Such products could allow eligible market participants to gain exposure to movements in the indices or use derivatives for hedging purposes. However, their launch remains dependent on the relevant regulatory approvals and exchange preparations.

Until those approvals are secured and products are formally introduced, the proposed derivatives launch should be viewed as a future possibility rather than an established offering.

What the Launch Means for Investors and Market Participants

The introduction of NDEX and FINNDEX expands the range of equity benchmarks available in India's financial-market ecosystem. Their potential usefulness will depend on the quality of the underlying methodology, constituent liquidity and the ability of market participants to use the indices in practical investment strategies.

Investors and institutions may monitor several factors as the initiative develops:

• Regulatory progress: Whether NCDEX receives the necessary approvals for its equity segment and future derivatives.

• Index transparency: How clearly the exchange publishes constituent selection, weighting and rebalancing information.

• Market participation: Whether brokers, institutions and other participants adopt the new benchmarks.

• Product development: Whether index-linked investment or risk-management products are introduced after regulatory clearance.

• Liquidity and performance: How the indices behave across different market conditions and whether they provide useful reference points.

The launch represents a strategic expansion, but the creation of an index alone does not guarantee liquidity, investor adoption or commercial success.

Market Outlook

NCDEX's launch of NDEX and FINNDEX marks a significant step in its effort to diversify from agricultural commodities into equity-market infrastructure. NDEX will track 20 large and liquid stocks, while FINNDEX will focus on 15 financial-sector companies, using a methodology that incorporates market capitalisation, traded value, beta and volatility.

The 15% constituent-weight cap and twice-yearly rebalancing schedule are designed to support diversification and maintain alignment with the indices' selection framework. Meanwhile, the proposed equity-segment approval and potential derivatives launch could expand NCDEX's role in India's capital markets if regulatory and commercial milestones are achieved.

For market participants, the key developments to watch will be regulatory clearance, index adoption, liquidity and the introduction of supporting products. The long-term significance of the launch will ultimately depend on whether NDEX and FINNDEX become credible, actively used benchmarks within India's evolving financial ecosystem.