NSE launches India’s first Electric Vehicle index

The base date for the index is April 02, 2018, and the base value is 1000. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.
Image used for representational purposes only.
Image used for representational purposes only.Express illustrations

MUMBAI: NSE’s index services subsidiary, NSE Indices Limited, on Thursday launched a new thematic index – the Nifty EV & New Age Automotive index to track the performance of companies which form a part of the electric vehicle (EV) ecosystem or are involved in the development of new age automotive vehicles or related technology.

“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,” said Mukesh Agarwal, CEO, NSE Indices. He added, “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 base date for the index is April 02, 2018, and the base value is 1000. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.

According to the NSE, 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.

Stocks forming part / going to be a part of the Nifty 500 index at the time of review are eligible for inclusion in the index. These companies need to be involved in the production and supply of electric or new age automotive vehicles, batteries, components, raw materials, and technology.

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%.

As per index statistics available on Nifty Indices website, a total of 34 companies will be part of the index. Some of these companies are Amara Raja Energy & Mobility, Bajaj Auto, Maruti Suzuki, Mahindra & Mahindra, Reliance Industries Ltd and others.

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