NSE launches India’s first EV Index: Nifty EV & New Age Automotive
A new thematic index called the Nifty EV & New Age Automotive Index was announced on Thursday by NSE Indices Limited, a division of NSE that specialises in index services.
The goal of this index is to track the success of companies in the electric vehicle (EV) industry as well as those working to develop cutting-edge automotive technologies.
According to an official announcement from NSE, the newly launched Nifty EV & New Age Automotive index seeks to monitor the performance of companies which form a part of the EV ecosystem or participate in developing new-age automotive vehicles.
With a base value of 1000, the index's base date is April 2, 2018. It will go through quarterly rebalancing as well as semi-annual reconstruction.
The Nifty EV & New Age Automotive India's inaugural Electric Vehicle Index, according to CEO of NSE Indices Mukesh Agarwal, is in keeping with NSE's mission to offer cutting-edge indices that reflect market trends. The introduction of the Nifty EV & New Age Automotive index will encourage the development of new products, giving asset managers the chance to participate in the electric vehicle and new age automotive markets and offer investors a means of investing.
The new index is anticipated to serve as a reference index for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products, and to serve as a benchmark for asset managers.
“The government of India has always been at the forefront of framing policies related to e-vehicle (EV) adoption in the nation to promote India as a manufacturing destination so that EVs with the latest technology can be manufactured in the nation and attract investments in the e-vehicle space by reputable global EV manufacturers, thereby giving a boost to the Made in India initiative,” citing NSE livemint reported.
Currently, the NSE offers 17 thematic indexes, such as the Nifty Infrastructure, Nifty CPSE, Nifty Commodities, and Nifty India Consumption.
The NSE is in charge of 15 sectoral indices, including Nifty Bank, Nifty IT, and Nifty Auto, in addition to various theme indices. Broad market indexes include Nifty, Nifty Next 50, Nifty 100 and others.