NSE’s arm IISL has today launched, Nifty 200 Quality 30 index. It will track the performance of selected firms based on profitability and earnings growth variability.

India Index Services & Products Limited (IISL) stated that, the new index constitutes top 30 companies from its parent Nifty 200 index, selected on the basis of their quality scores.

The quality score of each company will be determined based on return on equity, financial leverage and earning growth variability analysed during the previous 5 years. The weight of each stock in the index will be based on a combination of stock’s quality score and its free float market capitalization.

Mukesh Agarwal, IISL CEO stated, “In India, with availability of various smart beta indices, ETFs based on them are also expected to pick up, The launch of Nifty 200 Quality 30, along with the existing suite of Nifty smart beta indices reinforces NSE’s commitment towards developing the passive fund management space.”

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