Nifty Auto

Launched in 2011, the Nifty Auto index measures the performance of the top 15 automobile stocks. It is considered an indicator of the behaviour of the auto segment stocks. The index includes automobile companies from various segments such as four-wheeler, three-wheeler, two-wheeler, auto ancillary and tyres. This index is used as a benchmark for fund portfolios and to launch exchange traded funds (ETFs). Like some of the other key benchmark indices, the stocks within the Nifty Auto Index are also reviewed once in six months. One of the key criteria to be a part of this index is that the company has to be from the universe of the Nifty 500 index. In terms of weightage, the top five constituents of the index are Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Bajaj Auto and Eicher Motors. Since its inception, the Nifty Auto Index has delivered a 15.7% return on a CAGR basis.