India's First Electric Vehicle Index Launched by NSE

24 July 2024
3 min read
India's First Electric Vehicle Index Launched by NSE
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The National Stock Exchange (NSE) has unveiled India's first Nifty EV & New Age Automotive Index, marking a significant step in the fast-paced growth of the country's stock market. This innovative index tracks the performance of companies involved in the electric vehicle (EV) and new-age automotive sector, including hybrid and hydrogen fuel-based vehicles.

Key Components of the Nifty EV & New Age Automotive Index

The Nifty EV & New Age Automotive Index is designed to monitor companies engaged in EV manufacturing, charging infrastructure, battery production, and other crucial areas of the EV ecosystem. This index reflects India's commitment to clean and sustainable energy solutions and positions the country as a leader in the global shift towards electric mobility.

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Sector Representation:

Sector 

Weight (%)

Automobile and Auto Components:

71.37

Information Technology:

11.52

Chemicals

8.24

Capital Goods

5.33

Oil, Gas & Consumable Fuels

3.49

Consumer Services

0.07

Index Methodology 

The index has a base date of April 2, 2018, and a base value of 1000. Key points include:

  • Stocks part of or eligible for the Nifty 500 index at the time of review can be included in the index.
  • Eligible stocks from the Nifty 500 must be involved in the production and supply of electric or new-age automotive vehicles, batteries, components, raw materials, and technology.
  • The total weight of Group A stocks (manufacturers of 2W/3W/4W/PV/CV electric and new-age vehicles) is capped at 40%.
  • The weight of each Group A stock is capped at 8%, while all other stocks are capped at 4%.
  • The index is reconstituted semi-annually and rebalanced quarterly.
  • Index rebalancing occurs semi-annually, with cut-off dates on January 31 and July 31 each year. The semi-annual review considers average data for six months ending on the cut-off date. Market participants are given a four-week notice before any changes take effect.

Top Companies in the Nifty EV Index

As of May 31, 2024, the top 10 companies in the Nifty EV Index include:

Company’s Name

Weight (%)

Mahindra & Mahindra Ltd

9.69

Bajaj Auto Ltd

7.21

Maruti Suzuki India Ltd

7.21

Tata Motors Ltd

6.86

Exide Industries Ltd

5.42

Samvardhana Motherson International Ltd

4.69

CG Power and Industrial Solutions Ltd

4.27

Schaeffler India Ltd

4.25

Amara Raja Energy & Mobility Ltd

3.84

UNO Minda Ltd

3.7

EV Index: The Future of EV Investments

The launch of the Nifty EV & New Age Automotive Index heralds a new era for EV investments in India. As the sector grows, this index will provide investors with a crucial tool for tracking performance, making informed decisions, and contributing to the sector's future.

This index simplifies the investment process for those interested in EV companies, potentially driving significant capital influx into the industry. It also educates investors on the potential of innovative EV technology, aligning with the Indian government's push to make India a leading EV manufacturing hub, thereby boosting the Make in India initiative.

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