Nifty Metal Index

The Nifty Metal Index is designed to reflect the behaviour and performance of the metals sector, including mining. The Nifty Metal Index comprises a maximum of 15 stocks that are listed on the National Stock Exchange (NSE).

About Nifty Metal Index

The Nifty Metal Index is computed using the free-float market capitalisation method, wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to a particular base market capitalisation value. The index follows a periodic capped free-float methodology to ensure balanced representation across constituent companies within the metals sector.

An index variant, the Nifty Metal Total Returns Index, is also available for tracking total returns including dividend distributions. The index is managed by a professional team under a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee. As of October 31, 2025, the index comprises 15 constituents and is calculated in real-time during market hours.

Uses of Nifty Metal Index

The Nifty Metal Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs, and structured products. The index provides investors and fund managers with a comprehensive benchmark to track the performance of the metals sector within the Indian equity market.

Launch Date and Base Date of Nifty Metal Index

The Nifty Metal Index was launched on July 12, 2011. The base date for the index is January 1, 2004, with a base value of 1,000.

Nifty Metal Index Rebalancing

The index is rebalanced on a semi-annual basis. The cut-off dates are January 31 and July 31 of each year, meaning that for the semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks’ prior notice is given to the market from the date of change.

Top Constituents and Weightage of Nifty Metal Index

As of October 31, 2025, the top constituents of the Nifty Metal Index by weightage are:

• Tata Steel Ltd. — 19.88%
• Hindalco Industries Ltd. — 16.15%
• JSW Steel Ltd. — 14.86%
• Vedanta Ltd. — 11.01%
• Adani Enterprises Ltd. — 8.50%
• Jindal Steel Ltd. — 5.24%
• APL Apollo Tubes Ltd. — 4.27%
• NMDC Ltd. — 3.44%
• Jindal Stainless Ltd. — 3.18%
• National Aluminium Co. Ltd. — 2.76%

Nifty Metal Index Methodology

Eligibility Criteria

The following eligibility criteria are applied for selection of constituent stocks:

• Companies should form part of Nifty 500 at the time of review. If fewer than 10 eligible stocks represent the sector within Nifty 500, then deficit stocks are selected from the top 800 based on turnover and capitalisation over six months.
• Companies must be part of the metals sector.
• The company’s trading frequency should be at least 90% in the last six months.
• The company should have a minimum listing history of one month as of the cut-off date.
• Final selection is based on free-float market capitalisation.
• No single stock exceeds 33%, and top three stocks together do not exceed 62% weight at rebalancing.

Calculation Method

The index uses the periodic capped free-float methodology. Calculation frequency is real-time, with continuous market hour updates.

Performance Metrics

As of October 31, 2025, the index showed the following characteristics:

Returns (Total Return Index):

• Quarter-to-date (QTD): 22.69% (absolute)
• Year-to-date (YTD): 14.76% (absolute)
• 1 Year: 37.12% (absolute)
• 5 Years: 22.97% (CAGR)
• Since Inception: 23.38% (CAGR)

Fundamentals:

• Price-to-Earnings (P/E) Ratio: 20.03
• Price-to-Book (P/B) Ratio: 2.77
• Dividend Yield: 1.64%

Risk Metrics (based on Price Return Index):

• Standard Deviation (annualised): 35.26%
• Beta (relative to Nifty 50): 1.33
• Correlation with Nifty 50: 1.24