NSE Indices Ltd., a subsidiary of the National Stock Exchange, has introduced the Nifty EV and New Age Automotive index.
This thematic index aims to monitor companies engaged in the electric ecosystem or involved in developing electric vehicles, hybrid technology, and hydrogen fuel-based automotive vehicles.
India has made a significant leap in its stock exchange offerings with the launch of the first index dedicated to tracking the performance of companies within the electric vehicle (EV) ecosystem.
Eligible stocks from the broader Nifty 500 index can join this new index if they are involved in the production and supply of electric or new-age automotive vehicles, batteries, components, raw materials, and technology. This index could serve as a benchmark for asset managers and be a reference for passive funds in Exchange Traded Funds (ETFs), index funds, and structured products. The index, with a base date of April 2, 2018, and a base value of 1000, will undergo semi-annual reconstitution and quarterly rebalancing.
Presently, the index comprises 33 stocks, with top constituents including Bajaj Auto, Tata Motors Ltd., Maruti Suzuki India Ltd., Mahindra & Mahindra Ltd., Exide Industries Ltd., Bosch Ltd., Samvardhana Motherson International Ltd, Eicher Motors Ltd., CG Power and Industrial Solutions Ltd, and Himadri Speciality Chemical Ltd.
NSE Indices CEO Mukesh Agarwal highlighted that the Nifty EV & New Age Automotive index will pave the way for asset managers to invest in the electric vehicle and new-age automotive market, thus offering investors a new investment avenue.
This launch coincides with the Indian government’s push for battery and alternate fuel vehicle adoption. Electric vehicle uptake in India is accelerating, especially in the two and three-wheeler segments. According to the Vahan portal, approximately 1.6 million electric vehicles were sold in India during 2023-24, including 944,126 two-wheelers, 632,485 three-wheelers, 90,432 four-wheelers, and 3,693 buses.
The market is abuzz with news of electric two-wheeler giant Ola Technologies planning to list its shares on the stock exchanges soon. Similarly, Ather Energy and Hyundai Motor India are reportedly preparing for initial public offerings. In a significant move, Tata Motors has announced a restructuring plan to split into two separate publicly traded entities—one focusing on commercial vehicles and the other on passenger vehicles, which will include its electric vehicle business and Jaguar Land Rover.
