The NIFTY Metal is an index that tracks the performance of companies engaged in the metals sector and listed on the National Stock Exchange (NSE) of India. It includes 15 publicly traded companies engaged in various metal-related activities such as mining, refining, manufacturing, and distribution of metal products.

NIFTY Metal predominantly focuses on two sub-sectors: Metals & Mining, and Capital Goods, with allocations of around 94% and 6%, respectively. The index is governed and managed by NSE Indices Limited.

The industries eligible for inclusion in NIFTY Metal include aluminium, copper, zinc, iron & steel, precious metals, and others. Companies must operate primarily in the metal sector, be listed and actively traded on the NSE, and already be part of the NIFTY 500 index.

Companies should meet specific market capitalisation requirements to ensure sufficient size and scale. Stocks must demonstrate adequate trading liquidity, with a trading frequency of 90% or more in the previous six months. The index is reviewed every six months to ensure relevance.

The NIFTY Metal index is calculated using a market capitalisation-weighted methodology. The formula involves multiplying the individual stock weights by their respective market capitalisations and summing them up.

NIFTY Metal Index = (Sum of Market Capitalisation of Constituent Stocks) / (Base Market Capitalisation) × (Base Index Value). The base market capitalisation and base index value are periodically adjusted to account for corporate actions such as stock splits, mergers, or spin-offs.