New Delhi: If you want to be part of India’s electric vehicle (EV) ecosystem — you don’t necessarily need to buy an EV. The National Stock Exchange has now bundled together an entire index that can help you passively enjoy the dividends of the entire EV industry. NSE Indices, a subsidiary of stock exchange operator NSE launched the EV and New Age Automotive Index to track the performance of companies forming a part of the EV ecosystem or are involved in the development of new-age automotive vehicles or related technologies.
Which stocks will be part of the NSE EV index
The EV index will consist of stocks that are already a part of the Nifty 500 index, but specific to the production and supply of electric or new-age automotive vehicles, batteries, components, raw materials, and related tech. The lion’s share of the index is dominated by the automobile and auto components sector, with the IT sector contributing a little over 11 per cent, and the chemicals sector accounting for over 10 per cent.
At present, the top 5 constituents by weightage include big names such as:
Bajaj Auto
Tata Motors
M&M
Maruti Suzuki India
Exide Industries.
The list also includes stocks such as:
Bosch
Samvardhana Motherson International
Eicher Motors
CG Power
Industrial Solutions
Himadri Speciality Chemical
Together, these companies form the backbone of the portfolio, highlighting a diverse mix of auto and industrial stocks.
What should investors look out for?
The EV index is a thematic index, which joins the ranks of 17 other thematic indices on the NSE such as:
The Nifty Commodities
Nifty India Consumption
Nifty CPSE
Nifty Energy
Nifty Infrastructure
The base date for the index is April 2, 2018, and the base value is 1,000. The index will be reconstituted twice a year and rebalanced every quarter. Apart from this, a key thing that investors need to consider before investing in the index is the price-to-earnings ratio which is 33.07 and a price-to-book ratio of 6.09.
The EV index is expected to set a benchmark for asset managers and a reference index for tracking by passive funds in the form of Exchange -Traded Funds, index funds and structured products. So, if you are an investor looking to bet on the EV space, this index might be a promising opportunity for you. However, do remember to always consult a SEBI-registered investment advisor before making any investment decisions.
The NSE thematic EV and New Age Automotive Index is a thematic index that aims to track the growth of companies related to the EV and ancillary industries. The index comprise multiple stocks with group A stocks form the EV and new age automotive industry enjoying a 40 per cent weightage in the index. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
