First EV & New-Age Automotive Index launched by NSE Indices

Electric vehicles now have exclusive representation on the National Stock Exchange, or NSE. The NSE Indices Ltd has introduced the EV & New-Age Automotive Index in order to track performance of companies that form a part of the EV ecosystem, or are involved in the development of new age automotive vehicles or related technology.

This is the first time that a separate index has been launched specifically for the electric vehicle, commonly referred to as EV.

“We’re thrilled to announce that NSE Indices has launched Nifty EV & New Age Automotive Index today. The Nifty EV & New Age Automotive Index aims to track the performance of companies which form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology,” said a release issued by NSE Indices, which is a subsidiary of the National Stock Exchange.

The index has a base date of April 02, 2018 and a base value of 1000, according to the NSE Indices statement, which added that “stocks forming part / going to be a part of the Nifty 500 index at the time of review are eligible for inclusion in the index”.

“The launch of the Nifty EV and new-age automotive index will facilitate creation of products which will create opportunity for asset managers to invest in the electric vehicle and new-age automotive market thereby providing an investment vehicle to investors,” NSE Indices said.

The NSE Indices statement also had details about the classification of stocks across various categories of EVs.

“The overall weight of the stocks belonging to the Group A (Manufacturing of 2W/3W/4W/PV/CV Electric and New age automotive vehicles) shall be capped at 40 per cent. The weight of each stock belonging to Group A shall be capped at 8 per cent. All other stocks are capped at 4 per cent,” the NSE Indices statement explained.