 "NSE launches India's first EV index: Check details on firms, ranking")
NSE Indices Limited, a subsidiary of the National Stock Exchange of India, has introduced India's first electric vehicle (EV) Index. The Nifty EV & New Age Automotive Index tracks the performance of EV companies and those developing advanced automotive vehicles and related technologies.
Background and objectives
The index’s launch aligns with the Indian government's promotion of EVs and their manufacturing in the country, India aims to attract investments from global EV manufacturers, thereby supporting the Make in India initiative.
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Index details
The base date for the Nifty EV & New Age Automotive Index is April 2, 2018, with a base value set at 1000. This index will undergo semi-annual reconstitution and quarterly rebalancing, ensuring its relevance and accuracy in tracking the dynamic EV market landscape.
The Nifty EV & New Age Automotive Index includes EV manufacturers, new age automotive vehicles, electric batteries; EV or electric battery component producers and companies that produce or supply raw materials for EVs and autonomous vehicle technology. It also includes companies that build autonomous vehicles, and suppliers of autonomous vehicle technologies.
Sector representation sector weight of Nifty EV & New Age Automotive
Automobile and Auto Components - 72.13 per cent
Information Technology - 11.31 per cent
Chemicals - 10.63 per cent
Capital Goods - 6.39 per cent
Oil, Gas & Consumable Fuels - 3.37 per cent
Consumer Services - 0.18 per cent
Key fundamentals that investors should consider before investing in Nifty EV & New Age Automotive. The dividend yield of the index stands at 0.72 . The price-to-earnings (P/E) ratio is 33.07 and price-to-book ratio is 6.09.
The top constituents by weightage in Nifty EV & New Age Automotive
Bajaj Auto leads with a weightage of 7.08 per cent, followed by Tata Motors Ltd. at 6.49 per cent. Mahindra & Mahindra holds 5.83 per cent, while Maruti Suzuki India Ltd. has 5.28 per cent. Exide Industries Ltd. and Bosch Ltd. are also included with weightages of 4.78 per cent and 4.56 per cent, respectively. Samvardhana Motherson International Ltd. and Eicher Motors Ltd. have weightages of 4.45 per cent and 4.42 per cent, respectively. CG Power and Industrial Solutions Ltd. and Himadri Speciality Chemical are constituents, with weightages of 4.30 per cent and 4.28 per cent, respectively. Together, these companies form the backbone of the portfolio, highlighting a diverse mix of automotive and industrial leaders.
To apply for the Nifty EV & New Age Automotive index launched by NSE Indices, you can follow these steps:
Review the index methodology and factsheet available on the NSE Indices website at www.niftyindices.com or www.nseindia.com to understand the index composition, eligibility criteria, and rebalancing rules.
Determine your investment objectives and risk tolerance to assess if the Nifty EV & New Age Automotive index aligns with your investment strategy.
Consult with a financial advisor to discuss the potential risks and benefits of investing in the EV and new-age automotive sector through the index. They can help you evaluate if the index is suitable for your investment portfolio.
Invest in index funds or exchange-traded funds (ETFs) that track the Nifty EV & New Age Automotive index. These investment vehicles provide exposure to the underlying index and can be purchased through your broker or asset management company.