NSE Indices, which is a subsidiary of the National Stock Exchange (NSE) of India has reportedly launched a new Nifty EV and New Age Automotive Index, which marks a significant step as the EV adoption will surge along the expansion of charging infrastructure.
Tracking the EV ecosystem
The Nifty EV and New Age Automotive Index has been designed to track the performance of companies that are integral to the EV ecosystem and which are involved in the development of new-age automotive vehicles along with other related technologies. This innovative index will further aim to provide a comprehensive view of the evolving automotive landscape in the country- by reflecting the growing importance of advanced and electric automotive technologies.
Facilitating Investment Opportunities
Mukesh Agarwal, CEO of NSE Indices, highlighted the significance of the new index, stating, "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."
The introduction of this index is expected to facilitate the creation of financial products which will offer opportunities for asset managers to invest in the burgeoning EV and new-age automotive market. This will further provide an attractive investment vehicle for a wide range of investors.
Historical context and value
The base date for the index was April 2, 2018, with a base value set at 1,000. This historical context allows for a clear understanding of the index's performance over time, offering valuable insights for investors and stakeholders in the EV market.
SemiaAnnual reconstitution and quarterly rebalancing
To maintain the relevance and accuracy of the index, it will be reconstituted semi-annually and rebalanced every quarter. This regular adjustment will ensure that the index will remain reflective of the current market dynamics and the evolving landscape of the EV sector.
Asset Managers
The new index is said to act as a benchmark for asset managers and will serve as a reference index for passive funds, which will include Exchange Traded Funds (ETFs), index funds, and structured products. By offering a reliable benchmark, the index aims to support informed investment decisions and promote transparency in the market.
Government support and future prospects
The launch of the Nifty EV and New Age Automotive Index aligns with the Indian government's proactive stance on EV adoption and with its effort to position India as a leading manufacturing hub for electric vehicles.
These initiatives will aim at attracting investments in the EV sector, by promoting technological advancements, and supporting the development of a robust EV manufacturing ecosystem within the country.
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Inputs from IANS
