NSE Indices launches new electric vehicles index to spur EV ecosystem. Details here

NSE Indices, the index services subsidiary of the National Stock Exchange of India (NSE), launched a new thematic index – Nifty EV & New Age Automotive index – on May 30, a media release said.

The index aims to track the performance of companies which form a part of the electric vehicle (EV) ecosystem or are involved in the development of new age automotive vehicles or related technology, it added.

The base date for the index is April 02, 2018, and the base value is 1000. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.

“The Government of India has always been at the forefront of framing policies related to e-vehicles (EV) adoption in the country to promote India as a manufacturing destination so that EVs with the latest technology can be manufactured in the country and attract investments in the e-vehicle space by reputed global EV manufacturers, thereby giving a boost to the Make in India initiative,” NSE Indices said in the release.

Index to spur EV ecosystem

The new index will facilitate the EV ecosystem by creating opportunities for asset managers to pump investments into electric vehicles and other new age automobiles, NSE Indices CEO Mukesh Agarwal explained.

“The Nifty EV & New Age Automotive India’s first ever Electric Vehicle Index aligns with NSE’s vision to provide innovative indices in line with market trends,” Agarwal said.

The launch of the Nifty EV & 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,” he added.

The new index is expected to act as a “benchmark for asset managers” and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products, the release further stated.