NSE Indices Unveils Nifty EV & New Age Automotive Index

Overview

NSE Indices on 30th May,2024 launched a new index  named ' Nifty EV & New Age Automotive Index as a part of its Thematic Indices. The Nifty EV & New Age Automotive Index is created to monitor the performance of publicly traded companies involved in the electric vehicle ecosystem, innovative automotive technologies, or related sectors.

As per the GoI's policy on adoption of electric vehicles in India. The country is encouraging the manufacture of electric vehicles with the latest technology. Also, the Indian government aims at attracting global electric vehicle manufacturers to invest in the Electric Vehicle segment in India. This in turn boosted the country's ' Make in India' initiatives.

Nifty EV & New Age Automotive Index 

This Nifty index has a base date as 2nd April,2018 with its base value as 1000. This index will be reconstituted on a half yearly basis and the index rebalancing takes place on a quarterly basis. This is to make sure to efficiently track the electric vehicle segment accurately.

Eligibility

• This Nifty Index constitutes companies like electric vehicle manufacturers, new age automotive vehicles, electric batteries, EV or Electric battery component producing companies which supply raw materials for Electric vehicles and other automated vehicle technology. 

• This index also includes companies that manufacture automated vehicles and suppliers of automated vehicle technologies.

• The stocks of this index should be part of the Nifty 500 index .

• The stocks which are part of Group A (which manufactures 2W/3W/4W/PV/ CV/Electric & New age automotive vehicles)should be given a weightage of 40%.

• The weightage of each Group A stock should be 8% and all the other stocks should be 4%.

Sectoral Representation of Nifty EV & New Age Automotive 

Automobile & Auto Components     - 72.13%

Information Technology       - 11.31%

Chemicals     - 10.63%

Capital Goods     - 6.39%

Oil, Gas & Consumable Fuels     - 3.37%

Consumer Services     - 0.18%

Expected Benefits of Nifty EV & New Age Automotive 

• Will act as a benchmark for asset managers.

• Will act as a reference index to track passive funds of ETFs, index funds and structured products.

Constituent Stocks

The index constitutes around 33 stocks. 

Automobile and Auto Components

• Amara Raja Energy & Mobility Ltd.

• Bajaj Auto Ltd.

• Bharat Forge Ltd.

• Bosch Ltd.

• Eicher Motors Ltd.

• Exide Industries Ltd.

• Hero MotoCorp Ltd.

• JBM Auto Ltd.

• Mahindra & Mahindra Ltd.

• Maruti Suzuki India Ltd.

• Minda Corporation Ltd.

• Motherson Sumi Wiring India Ltd.

• Olectra Greentech Ltd.

• Samvardhana Motherson International Ltd.

• Schaeffler India Ltd.

• Sona BLW Precision Forgings Ltd.

• TVS Motor Company Ltd.

• Tata Motors Ltd.

• Tube Investments of India Ltd.

• UNO Minda Ltd.

• Varroc Engineering Ltd.

Capital Goods

• Ashok Leyland Ltd.

• CG Power and Industrial Solutions Ltd.

• Jupiter Wagons Ltd.

Chemicals

• Gujarat Fluorochemicals Ltd.

• Himadri Speciality Chemical Ltd.

• Tata Chemicals Ltd.

Consumer Services

• RattanIndia Enterprises Ltd.

Information Technology

• KPIT Technologies Ltd.

• L&T Technology Services Ltd.

• Tata Elxsi Ltd.

• Tata Technologies Ltd.

Oil, Gas & Consumable Fuels

• Reliance Industries Ltd.

Source : niftyindices.com

Performance 

The Dividend yield of this index is at 0.72, while the P/E ratio is 33.07%  and the PB ratio is 6.09.

The total price return of the index since inception is 20.05%.

Source : niftyindices.com

Frequently Asked Questions

What are New Age Automotive Vehicles?

Vehicles such as hybrid vehicles, hydrogen fuel - based vehicles and green hybrid vehicles are called as New Age Automotive Vehicles

Which companies are included in the Nifty EV and New Age Automotive Index?

This Nifty Index constitutes companies like electric vehicle manufacturers, new age automotive vehicles, electric batteries, EV or Electric battery component producing company which supplies raw materials for Electric vehicles and other automated vehicle technology. This index also includes companies that manufacture automated vehicles and suppliers of automated vehicle technologies.

How can I invest in the Nifty EV and New Age Automotive Index?

Investors can gain exposure to the Nifty EV and New Age Automotive Index through exchange-traded funds (ETFs) or index funds that track the performance of this index. Additionally, individual stocks within the index can be purchased directly through stock exchanges.

What are the growth prospects for the Nifty EV and New Age Automotive Index?

The growth prospects for this index are closely tied to the adoption and advancement of electric vehicles and related technologies. With increasing regulatory support for EVs, rising environmental awareness, and technological innovations, the sector is expected to experience significant growth in the coming years.

What factors should be considered when investing in the Nifty EV and New Age Automotive Index?

Investors should consider the regulatory environment, technological advancements, competitive landscape, and financial health of the constituent companies. Additionally, broader market conditions and trends in the automotive and energy sectors can impact the performance of the index.