NEW DELHI: NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE) specializing in index services, on Thursday introduced a new thematic index - Nifty EV & New Age Automotive Index. In a press release, the NSE said, "This index is designed to track the performance of companies involved in the electric vehicle (EV) ecosystem and the development of new-age vehicles or related technologies."
“India's first Nifty EV & New Age Automotive Index for electric vehicles is in line with NSE's vision of providing innovative indices that are aligned with market trends,” said Mukesh Agarwal, CEO, NSE Indices. “The launch of Nifty EV & New Age Automotive Index for electric vehicles. New Age Automotive Index will facilitate the creation of products that will create an opportunity for asset managers to invest in the electric vehicle market and the new age automobile market, thereby providing an investment vehicle for investors.
The government has consistently championed policies to promote adoption of electric vehicles, with the aim of establishing India as a major manufacturing hub. These policies aim to support the production of technologically advanced electric vehicles within the country, attract investments from world-renowned electric vehicle manufacturers and support the 'Make in India' initiative.
The release also stated that: "The new index is expected to serve 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."
The index's base date is April 2, 2018, with a base value of 1,000. It will undergo a semi-annual reconstitution and quarterly rebalancing. The Nifty EV & New Age Automotive Index is expected to serve as a benchmark for asset managers and will be tracked by passive funds such as exchange-traded funds (ETFs), index funds and structured products.
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