NSE launches Nifty EV & automotive index to boost India’s EV market

NSE Indices has unveiled the Nifty EV & New Age Automotive Index, designed to track the performance of companies in India’s burgeoning electric vehicle ecosystem. This new index aims to drive investment and innovation in the EV sector, aligning with the country’s push towards sustainable automotive technologies.

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NSE Indices, a subsidiary of the National Stock Exchange (NSE) of India, has launched a new Nifty EV and New Age Automotive Index. This launch marks a significant step forward in tracking the performance of companies integral to the electric vehicle (EV) ecosystem and those involved in developing new-age automotive technologies. The introduction of this index aligns with the expected surge in EV adoption and the expansion of charging infrastructure across the country.

The Nifty EV and New Age Automotive Index aims to provide a comprehensive view of India’s evolving automotive arena. By reflecting the growing importance of advanced and electric automotive technologies, this innovative index highlights companies at the forefront of these developments. Mukesh Agarwal, CEO of NSE Indices, emphasized the index’s significance, stating, “The Nifty EV & New Age Automotive Index, India’s first-ever Electric Vehicle Index, aligns with NSE’s vision to provide innovative indices in line with market trends.”

The new index is expected to facilitate the creation of financial products that will offer asset managers opportunities to invest in the booming EV and new-age automotive market. This move provides an attractive investment vehicle for a wide range of investors. The index’s base date was set on April 2, 2018, with a base value of 1,000. This historical context offers investors and stakeholders valuable insights into the index’s performance over time.

To ensure the index remains relevant and accurate, it will be reconstituted semi-annually and rebalanced every quarter. These regular adjustments will keep the index reflective of current market dynamics and the evolving EV sector. By offering a reliable benchmark, the index aims to support informed investment decisions and promote market transparency.

Vinayak Lele, Manager HV systems commented on the news, stating, “The Nifty EV & New Age Automotive Index will provide investors with a comprehensive overview of the Indian EV landscape, promoting investment opportunities. The Indian EV industry is in its early stages but is poised for exponential growth, potentially increasing tenfold, driven by government-linked incentives. The EV Index will serve as a vehicle for investors to capitalize on the rapidly expanding Indian EV market and enable fund managers to create various structured products.”

“However, it is essential to maintain a balanced focus on component manufacturers. Investments in new technologies are crucial, particularly in fundamental components such as lithium batteries, electric motors, power electronics, and technology IP creation,” he added.

The introduction of this index aligns with the Indian government’s proactive stance on EV adoption and efforts to position India as a leading manufacturing hub for electric vehicles. These initiatives aim to attract investments in the EV sector, promote technological advancements, and support the development of a robust EV manufacturing ecosystem within the country.

Mukesh Agarwal further expressed his views on the EV index launch, stating, “The Nifty EV & New Age Automotive Index will facilitate the creation of products, creating opportunities for asset managers to invest in the electric vehicle and new-age automotive market, thereby providing an investment vehicle to investors.”

The Nifty EV and New Age Automotive Index is expected to act as a benchmark for asset managers and serve as a reference index for passive funds. This includes Exchange Traded Funds (ETFs), index funds, and structured products. By providing a reliable benchmark, the index supports informed investment decisions and promotes transparency in the market.

Currently, there are 17 thematic indices on the NSE, including Nifty Commodities, Nifty India Consumption, Nifty CPSE, Nifty Energy, and Nifty Infrastructure. The addition of the Nifty EV and New Age Automotive Index enhances this portfolio, further diversifying the investment options available to investors and reflecting the dynamic nature of the market.

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