National Stock Exchange on Thursday launched ‘Quality 30’ index to capture the performance of stocks selected on quality parameters.
India Index Services & Products Ltd (IISL), a NSE group firm, has launched a quality parameter-based ‘NSE Quality 30’ index, adding to the existing suite of its strategy based indices.
The index aims to reflect performance of stocks of top 30 quality companies chosen from a pool of 100 large and liquid companies listed on the NSE.
Quality companies are identified on the basis of quality score which is based on high return on equity, low debt-to-equity ratio and year-on-year growth in profit after tax over the last three years.
The index would serve as a benchmark for investors looking to invest in firms with durable business model, resulting in sustained profits and high return on equity, IISL said in a statement.
It will be available for licensing for the launch of financial products such as exchange traded fund and structured products.