NIFTY EV and New Age Automotive Index
The National Stock Exchange (NSE) of India has unveiled an innovative index that marks a significant step towards a sustainable and technologically advanced automotive future. The NIFTY EV and New Age Automotive Index is designed to track the performance of companies involved in the electric vehicles (EV) and new-age automotive sectors, including hybrid, hydrogen fuel-based, and green hybrid vehicles. This comprehensive index encapsulates manufacturers, component producers, and suppliers integral to the EV and autonomous vehicle ecosystem. Index Methodology: A Structured Approach 1. Base and Eligibility Criteria
Base Date and Value: The index is grounded with a base date of April 02, 2018, and a base value of 1000.
Eligibility: Only stocks that are part of the Nifty 500 at the time of review are eligible for inclusion. These companies must be actively engaged in the production or supply of electric or new-age automotive vehicles, batteries, components, raw materials, and related technologies.
2. Weightage and Capping
Group A Stocks: Companies manufacturing electric and new-age automotive vehicles (2W/3W/4W/PV/CV) form Group A. The collective weight of these stocks is capped at 40%, with each individual stock capped at 8%.
Other Stocks: Stocks outside Group A are capped at 4% each, ensuring a balanced representation within the index.
3. Reconstitution and Rebalancing The index undergoes reconstitution semi-annually and is rebalanced on a quarterly basis to maintain its relevance and accuracy in reflecting market dynamics.
Top Constituents by Weightage
The NIFTY EV and New Age Automotive Index features leading companies at the forefront of the automotive evolution:
Bajaj Auto Ltd. - 7.08%
Tata Motors Ltd. - 6.49%
Mahindra & Mahindra Ltd. - 5.83%
Maruti Suzuki India Ltd. - 5.28%
Exide Industries Ltd. - 4.78%
Bosch Ltd. - 4.56%
Samvardhana Motherson International Ltd. - 4.45%
Eicher Motors Ltd. - 4.42%
CG Power and Industrial Solutions Ltd. - 4.30%
Himadri Speciality Chemical Ltd. - 4.28%
Sector Representation: Diverse and Comprehensive
The index is a microcosm of the dynamic sectors propelling the automotive industry forward:
Automobile and Auto Components: 72.13%
Information Technology: 11.31%
Chemicals: 10.63%
Capital Goods: 6.39%
Oil, Gas & Consumable Fuels: 3.37%
Consumer Services: 0.18%
Applications: Versatile and Multifaceted
The NIFTY EV and New Age Automotive Index is more than a market tracker. It serves multiple purposes:
Benchmarking Fund Portfolios: Provides a benchmark for funds investing in the EV and new-age automotive sector.
Launching Index Funds and ETFs: Facilitates the creation of index funds and exchange-traded funds (ETFs) centred around the burgeoning EV market.
Structured Products: Supports the development of structured financial products tailored to investor interests in sustainable and advanced automotive technologies.
The NIFTY EV and New Age Automotive Index is a pioneering initiative by the NSE, reflecting the accelerating shift towards sustainable mobility solutions. By encapsulating a broad spectrum of companies within the EV and new-age automotive space, the index not only offers investors a robust tool for tracking market trends but also underscores the growing significance of green and autonomous vehicle technologies in shaping the future of transportation. Whether you're an investor, industry analyst, or automotive enthusiast, this index provides invaluable insights into the companies driving the next wave of automotive innovation.
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