On May 30, NSE Indices Limited, the subsidiary of the National Stock Exchange, introduced a new thematic index called the Nifty EV & New Age Automotive index.

The objective of the Nifty EV & New Age Automotive index is to monitor the performance of companies that are part of the EV ecosystem or engage in developing new age automotive vehicles or related innovations.

The Government of India has consistently taken the lead in creating policies regarding the adoption of EVs in the country. The aim is to promote India as a manufacturing hub for EVs with the latest technology.

Also, it encourages reputable global EV manufacturers to invest in the e-vehicle sector. This, in turn, will bolster the Make in India initiative.

Mukesh Agarwal, CEO of NSE Indices, said:

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.

The launch of the Nifty EV & New Age Automotive index will facilitate the creation of products. These products will generate opportunities for asset managers to invest in the electric vehicle and new age automotive market. Consequently, investors will have an investment vehicle available to them.

The index has a base date of April 02, 2018, with a base value of 1000. The index will undergo semi-annual reconstitution and quarterly rebalancing.

Asset managers will use the new index as a benchmark. Moreover, passive funds like Exchange Traded Funds (ETFs), index funds, and structured products will track this index as a reference.

At present, NSE hosts 17 thematic indices. These indices include Nifty Commodities, Nifty India Consumption, Nifty CPSE, Nifty Energy, and Nifty Infrastructure.

Besides these thematic indices, the NSE also manages Broad Market Indices like Nifty, Nifty Next 50, Nifty 100, and others. Additionally, it supervises 15 sectoral indices, such as Nifty Bank, Nifty IT, and Nifty Auto.