NSE Indices Introduces India's First EV Index: Here's what you should know

NSE Indices Ltd, a subsidiary of the National Stock Exchange, has introduced the EV and new-age automotive index to monitor the performance of companies involved in the EV ecosystem. This marks the debut of India's inaugural electric vehicle (EV) index. NSE Indices announced in a statement, “We are delighted to announce that NSE Indices has today launched the Nifty EV & New Age Automotive Index. The Nifty EV & New Age Automotive Index aims to track the performance of companies that form part of the EV ecosystem or are involved in the development of new age vehicles or related technologies.”

The introduction of the Nifty EV and modern automotive index will enable the development of products that will offer asset managers a chance to invest in the electric vehicle and modern automotive market, providing an investment option for investors.

NSE provided additional information, stating that the index has a starting point of April 02, 2018 with a value of 1000. Stocks that are part of or going to be included in the Nifty 500 index during the review period are qualified for being added to the index.

It also mentioned that the total weight of Group A's stocks related to electric and new age automotive vehicles will be limited to 40 percent. The maximum allowed weight for each stock in Group A is 8 per cent. All other stocks have a maximum limit of 4 percent.

FAQs

Q. What is the NSE EV index?

A. The National Stock Exchange (NSE) has launched a new thematic index – Nifty EV & New Age Automotive index – to track the performance of companies which are a part of the electric vehicle (EV) ecosystem or are involved in the development of new-age automotive vehicles or related technology.

Q. What is EV index?

A. This index is designed to monitor the performance of businesses within the electric vehicle (EV) sector and those engaged in the advancement of new-age automotive vehicles and associated technology. NSE EV is designed to monitor the performance of businesses within the electric vehicle (EV) sector (Bloomberg)

Q. What do you mean by NSE indices?

A. NSE Indices Limited (formerly known as India Index Services & Products Limited), or NSE Indices, owns and manages a portfolio of over 350 indices under the Nifty brand as of February 29, 2024, including Nifty 50. Nifty indices are used as benchmarks for products traded on NSE.

Q. How is NSE index calculated?

A. The index is calculated based on the free float market capitalization of the 50 constituent stocks India. These Indian stocks are weighted based on their market capitalization. The value of the National Stock Exchange Fifty is calculated using a base year and a base value.

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