India has launched its first stock exchange index to monitor the performance of businesses involved in the ecosystem for electric vehicles. The National Stock Exchange’s index services arm, NSE Indices Ltd., introduced the Nifty EV & New Age Automotive index on Thursday.
The success of businesses engaged in the electric ecosystem, such as those creating hybrid and hydrogen fuel-powered automobiles, as well as those creating electric vehicles, will be tracked by this thematic index.
Companies must be a part of the larger Nifty 500 index and engaged in the manufacturing and supply of batteries, raw materials, components, electric or modern automotive vehicles, as well as related technology, in order to be eligible for inclusion in this index.
The index is intended to be used as a reference point for passive funds in Exchange Traded Funds (ETFs), index funds, and structured products, as well as a benchmark for asset managers. The index’s start date is April 2, 2018, and its base value is 1000. It will undergo semi-annual reconstitution and quarterly rebalancing.
There are 33 stocks in the index at the moment, and the top weighted companies are: Bajaj Auto, Mahindra & Mahindra Ltd., Bosch Ltd., Exide Industries Ltd., Samvardhana Motherson International Ltd., Eicher Motors Ltd., CG Power and Industrial Solutions Ltd., and Himadri Speciality Chemical Ltd.
The introduction of the Nifty EV & New Age Automotive index is anticipated to encourage the development of investment products and provide asset managers with chances to participate in the new-age automotive and electric vehicle markets. This offers investors a specialized investment vehicle, according to Mukesh Agarwal, CEO of NSE Indices.
The development of this new index aligns with the Indian government’s efforts to encourage the use of alternative fuel and battery-powered automobiles. India is seeing a tremendous rise in the use of electric vehicles, especially in the two- and three-wheeler segments. Around 1.6 million electric vehicles, comprising 944,126 two-wheelers, 632,485 three-wheelers, 90,432 four-wheelers, and 3,693 buses, were sold in India in 2023–2024, according to the Vahan portal.
Ola Technologies, a leading manufacturer of electric two-wheelers, is anticipated to list its stock on stock exchanges in the near future. Ather Energy and Hyundai Motor India are rumored to be preparing for initial public offerings as well. Furthermore, Tata Motors has disclosed a major reorganization strategy to demerge into two distinct publicly listed companies: one for commercial cars and the other for passenger vehicles, which will comprise Jaguar and its electric vehicle division.
