Nikkei 225 to add information and communications sector

Japan's benchmark index introduces new constituent selection rules Changes to the Nikkei 225 stock index, effective Oct. 1, follow a consultation and will be reflected in this autumn's review. TOKYO — Nikkei announced on Thursday that it will revise the rules governing its Nikkei 225 index, creating a new "information and communications" sector for constituent selection. The company will also rename the "communications" category in the Nikkei industry classification to "information and communications," move IT-related stocks from the services category to the new industry grouping, and introduce rules for replacing constituents within the same sector. Under the constituent selection methodology for the Nikkei 225 — a stock index of Japan's leading 225 companies — the 36 subcategories in the Nikkei industry classification, including banks and automobiles, are grouped into six broader sectors such as financials and technology. Constituent additions and deletions are determined with consideration given to maintaining balance among those sectors and avoiding excessive concentration in any one area. The creation of the information and communications sector will increase the number of sectors to seven.

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