NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE), has unveiled the country's first thematic index dedicated to the electric vehicle (EV) sector – the Nifty EV & New Age Automotive index. This groundbreaking initiative aims to track the performance of companies that are integral to the EV ecosystem or involved in developing next-generation automotive vehicles and related technologies.
The Nifty EV & New Age Automotive index comes at a time when the Indian government is actively promoting the adoption of electric vehicles. Through a series of progressive policies, the government aims to position India as a leading manufacturing hub for EVs, thereby attracting substantial investments from global EV manufacturers and boosting the Make in India initiative.
Mr. Mukesh Agarwal, CEO of NSE Indices, highlighted the strategic vision behind the new index. “The Nifty EV & New Age Automotive index, India’s first-ever Electric Vehicle Index, aligns with NSE’s vision to provide innovative indices that reflect current market trends. Launching this index will enable the creation of investment products, offering asset managers the opportunity to invest in the burgeoning EV and new-age automotive market, thus providing a valuable investment vehicle for investors.”
The index’s base date is April 2, 2018, with an initial base value set at 1000. It will undergo reconstitution semi-annually and be rebalanced quarterly to ensure it accurately reflects the dynamic nature of the EV and new-age automotive sectors.
The introduction of the Nifty EV & New Age Automotive index is expected to serve as a critical benchmark for asset managers and a reference point for passive funds such as Exchange Traded Funds (ETFs), index funds, and structured products. This new index not only marks a significant step forward in the financial markets but also underscores the growing importance of sustainable and advanced automotive technologies in India.
As the EV market continues to expand globally, the Nifty EV & New Age Automotive index is poised to play a crucial role in driving investments and fostering innovation within the industry, further solidifying India’s position in the global EV landscape.
