India’s First Electric Vehicle Index Launched

NSE’s index services subsidiary, NSE Indices Limited has launched a new thematic index – Nifty EV & New Age Automotive index to track the performance of companies which form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology.

“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. This will facilitate creation of products which will create opportunity for asset managers to invest in the Electric vehicle and new age automotive market,” Mukesh Agarwal, CEO, NSE Indices said.

The new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.

In the backdrop of the launch, industry players have lauded the initiative and said that EV index serves as a beacon for investors.

“The recent launch of India’s Electric Vehicle (EV) index by NSE Indices marks a significant milestone for the EV industry, reinforcing investor confidence and celebrating the sector’s progress. The EV index serves as a beacon for investors, providing transparency and benchmarks that guide sustainable investments,” Jayapradeep Vasudevan, CBO, Raptee said.

“The launch also acknowledges the tireless efforts of engineers, researchers, and visionaries who have driven advancements in EV technology. From breakthroughs in battery technology to the development of smart mobility solutions, the index captures the collective strides that have revolutionized the automotive landscape. It is a fitting reward for those who have disrupted traditional norms and propelled the industry forward,” he added.

The base date for the index is April 02, 2018, and the base value is 1000. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.

“The launch of the Nifty EV & New Age Automotive Index by NSE is a significant development for the Indian electric vehicle industry. It acknowledges the growing importance of EVs and creates a dedicated platform to track their performance. This not only enhances transparency but also fosters investor confidence, which is critical for the sector’s long-term growth,” Sulajja Firodia Motwani, Founder and CEO, Kinetic Green said.

It will also enable retail investors to participate in the disruptive EV opportunity and provide this opportunity in a transparent manner.

“Increased visibility through this index will undoubtedly attract further investment into the EV space, which is essential to fuel innovation and bring more affordable and efficient electric vehicles to the market,” she added.

Pratik Kamdar, CEO & Co-Founder, Neuron Energy said, “This dedicated index will serve as a valuable platform for tracking the performance of companies involved in the electric vehicle value chain and the development of new-age automotive technologies. By providing increased visibility and credibility to EV manufacturers and associated businesses, the index will attract much-needed investments and align perfectly with the government’s initiatives to promote sustainable transportation.”

As NSE starts electric vehicle index, let get look at how leading EV makers including Tata Motors, JBM Auto, and Olectra Greentech are performing on BSE as of May 31, 2024.

Tata Motors

Tata Motors that closed trading at INR 924.15 a day ago rose by 1.43 per cent to the Friday’s high of INR 937.40. Its shares were trading higher by 0.70 per cent, or INR 6.45, at INR 930.60 each.

JBM Auto

After closing at INR 2,038.15 in the previous session, JBM Auto slipped by 2.40 per cent to Friday’s low of INR 1,992.50. JBM Auto shares were trading lower by 1.59 per cent, or INR 32.35, at INR 2,005.80 each on Friday.

Olectra Greentech

Olectra Greentech rose by 1.63 per cent to Friday’s high of INR 1,786.95 after starting the session at INR 1,755.55.