India's first EV Index launched by NSE

Mumbai, May 30, 2024:The Nifty EV & New Age Automotive index is a significant development in India's financial and automotive sectors. This index is designed to track the performance of companies involved in the electric vehicle (EV) ecosystem and the development of new age automotive technologies. The initiative aligns with India's broader policy goals of promoting EV adoption, boosting domestic manufacturing, and attracting global investments in the EV space. Mukesh Agarwal, CEO of NSE Indices, highlighted that this index is India's first dedicated EV index. It is designed to provide innovative investment opportunities in line with market trends, facilitating the creation of products that allow asset managers to invest in the EV and new age automotive market.

Key points about the Nifty EV & New Age Automotive index:

1. Objective: The index aims to track the performance of companies engaged in the EV ecosystem or involved in new age automotive technologies. This includes manufacturers of electric vehicles, producers of EV components, and companies developing related technologies.
2. Policy Context: The Government of India has been proactive in framing policies to support EV adoption, with the goal of positioning India as a global manufacturing hub for EVs. These policies are part of the broader "Make in India" initiative, which aims to encourage domestic manufacturing and attract foreign investment.
3. Index Details:
   • Base Date and Value: The index's base date is April 02, 2018, with a base value of 1000.
   • Reconstitution and Rebalancing: The index will be reconstituted semi-annually and rebalanced quarterly. This ensures that the index remains relevant and accurately reflects the evolving market dynamics.
4. Investment Vehicles: The index is expected to serve as a benchmark for asset managers and be tracked by various passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products. This will provide investors with a new avenue to invest in the burgeoning EV and new age automotive sector.

The launch of the Nifty EV & New Age Automotive index represents a forward-looking approach by NSE Indices, aligning with global trends and supporting India's strategic objectives in the automotive sector. It provides a structured and transparent way for investors to gain exposure to companies at the forefront of the EV revolution and new automotive technologies.