NSE Indices Launches Nifty EV & New Age Automotive Index

The National Stock Exchange (NSE) has launched a new thematic index – Nifty EV & New Age Automotive index – to track the performance of companies which are a part of the electric vehicle (EV) ecosystem or are involved in the development of new-age automotive vehicles or related technology.

NSE’s index services subsidiary NSE Indices announced the development on Thursday (May 30). The base date for the index is April 02, 2018, and the base value is 1,000. 

The index will be reconstituted semi-annually and rebalanced on a quarterly basis, it said.

As per the information available on its website, stocks forming a part of the Nifty 500 are eligible to be a part of the index, provided they are involved in the production and supply of electric or new-age automotive vehicles, batteries, components, raw materials, and technology.

Currently, the listed companies that comprise the list include EV battery manufacturers Amara Raja Energy & Mobility and Exide Industries Ltd, vehicle manufacturers Bajaj Auto Ltd, Hero MotoCorp Ltd, Olectra Greentech Ltd, TVS Motor Company Ltd, and Tata Motors Ltd. 

We must note in this context that the stocks included so far are also linked with several new-age tech startups as investors, or partners, or competitors. 

Meanwhile, India’s leading electric two-wheeler manufacturer in terms of sales, Ola Electric, is also gearing up for an over INR 5,500 Cr IPO and eyeing listing on the exchanges this year.

The new index launch by NSE Indices comes on the back of the Indian government’s push for the adoption of EVs and promoting India as a manufacturing destination so that EVs with the latest technology can be manufactured in the country, attracting more investments. 

Commenting on the launch of the new index, Mukesh Agarwal, CEO of NSE Indices, said that the Nifty EV & New Age Automotive index is India’s first-ever electric vehicle index that 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 the creation of products which will create opportunity for asset managers to invest in the EV and new-age automotive market thereby providing an investment vehicle to investors,” he said.

The new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.