The National Stock Exchange of India (NSE) subsidiary NSE Indices Ltd has introduced India's first thematic index to track the market for new-age cars and electric vehicles.
"NSE Indices is pleased to announce the debut of the Nifty EV & New Age Automotive Index today. The exchange said on Thursday that the Nifty EV & New Age Automotive Index seeks to monitor the performance of businesses that are either developing new age automotive cars or associated technologies, or that are a part of the EV ecosystem.
The index's base value is 1000, and its base date is April 02, 2018. "Eligible stocks for index inclusion are those that are currently included in or planned to be included in the Nifty 500 index at the time of review," it stated.
The NSE stated that passive funds, such as exchange traded funds (ETFs), index funds, and structured products, will use the new index as a reference index and a benchmark for asset managers.
"Group A's (manufacturing of 2W/3W/4W/PV/CV Electric and New Age Automotive Vehicles) total weight of inventories should not exceed 40 percent.
There will be an 8% cap on the weight of each Group A stock. There is a 4% cap on all other equities, the exchange added.
The index is reconstructed every six months and rebalanced every three months. Nifty Commodities, Nifty India Consumption, Nifty CPSE, Nifty Energy, and Nifty Infrastructure are just a few of the 17 theme indices available on the NSE now.
