The Nifty EV & New Age Automotive Index aims to track the performance of companies that are active in the electric vehicle (EV) and new age automotive vehicle segments. This includes hybrid vehicles, hydrogen fuel-based vehicles, and green hybrid vehicles.
The index particularly focuses on manufacturers of electric and new age vehicles, electric batteries, and components for electric vehicles and batteries.
Additionally, it includes companies producing or supplying raw materials relevant to the EV and autonomous vehicle technology segments, as well as companies building autonomous vehicles and suppliers of autonomous vehicle technologies.
This index can be used for a variety of purposes such as benchmarking fund portfolios, launching index funds, exchange-traded funds (ETFs), and structured products.
The Nifty EV & New Age Automotive Index serves as a robust tool for investors aiming to capitalize on the dynamic growth within these innovative sectors.
The index has a base date of April 2, 2018, with an initial base value set at 1000.
It is calculated at the end of each day and rebalanced semi-annually to ensure it remains current with market trends and includes only the most relevant companies in the rapidly evolving EV and automotive technology sectors.
This periodic adjustment helps maintain the index’s alignment with the latest industry developments and emerging leaders.
One of the notable aspects of the index is its diversified portfolio characteristics.
It operates on a periodic capped free float methodology, which limits the weight of individual stocks to prevent any single entity from exerting an outsized influence on the index’s performance.
The overall weight of stocks from Group A—comprising manufacturers of electric and new age vehicles—is capped at 40%, with each individual stock in this group capped at 8%. All other stocks are capped at 4%.
The Nifty EV & New Age Automotive Index features a total of 33 constituents. Among the top constituents by weightage are Bajaj Auto Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd. as displayed in the table below:
| Company’s Name | Weight(%) |
|---|---|
| Bajaj Auto Ltd. | 7.08 |
| Tata Motors Ltd | 6.49 |
| Mahindra & Mahindra Ltd | 5.83 |
| Maruti Suzuki India Ltd | 5.28 |
| Exide Industries Ltd. | 4.78 |
| Bosch Ltd. | 4.56 |
| Samvardhana Motherson International Ltd. | 4.45 |
| Eicher Motors Ltd. | 4.42 |
| CG Power and Industrial Solutions Ltd | 4.30 |
| Himadri Speciality Chemical Ltd. | 4.28 |
The introduction of the Nifty EV & New Age Automotive Index, along with its variant the Nifty EV & New Age Automotive Total Returns Index, provides a valuable benchmarking tool for investors seeking to gain exposure to the growing markets of electric and new age vehicles.
By tracking companies that are leading the charge in these innovative sectors, the index offers a focused investment avenue that aligns with the future of transportation and sustainable technology.
This index not only highlights the importance of the EV ecosystem but also underscores the significant role of new age automotive technologies in shaping the future of mobility.
