NSE Indices Introduces Nifty EV & New Age Automotive Index!

On May 30, NSE Indices Limited, a subsidiary of NSE's index services, introduced a new thematic index named the Nifty EV & New Age Automotive Index.

"We're thrilled to announce that NSE Indices has introduced Nifty EV & New Age Automotive Index today. The Nifty EV & New Age Automotive Index aims to track the performance of companies which form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology," the exchange stated on Thursday. 

Mukesh Agarwal, CEO, NSE Indices, said, “The Nifty EV & New Age Automotive India’s first ever Electric Vehicle Index aligns with NSE’s vision to provide innovative indices in line with market trends. The launch of the Nifty EV & New Age Automotive index will facilitate creation of products which will create opportunity for asset managers to invest in the Electric vehicle and new age automotive market thereby providing an investment vehicle to investors.”

The index has a base date of 2-April-2018, and a base value of 1000. It will undergo reconstitution every six months and re-balancing every quarter. This new index is anticipated to serve as a benchmark for asset managers and as a reference index for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products.

“The Government of India has always been at the forefront of framing policies related to e-vehicles (EV) adoption in the country to promote India as a manufacturing destination so that EVs with the latest technology can be manufactured in the country and attract investments in the e-vehicle space by reputed global EV manufacturers, thereby giving a boost to the Make in India initiative," NSE added.

"The overall weight of the stocks belonging to the Group A (Manufacturing of 2W/3W/4W/PV/CV Electric and New age automotive vehicles) shall be capped at 40%. The weight of each stock belonging to Group A shall be capped at 8%. All other stocks are capped at 4%," the exchange further said. The index is reconstituted semi-annually and to be re-balanced on a quarterly basis.

At present, the NSE offers 17 thematic indices, including Nifty Commodities, Nifty India Consumption, Nifty CPSE, Nifty Energy, and Nifty Infrastructure. Alongside these thematic indices, the NSE manages Broad Market Indices such as Nifty, Nifty Next 50, Nifty 100, among others, as well as 15 sectoral indices like Nifty Bank, Nifty IT, and Nifty Auto.