The NSE’s index services subsidiary, NSE Indices Limited recently announced the launch of a new thematic index – Nifty EV & New Age Automotive index. Here are all details you need to know about this index.
Nifty EV & New Age Automotive (NENAA) index will track the performance of companies that form a part of the EV ecosystem or are involved in the development of new age automotive vehicles or related technology.
Companies that can be a part of this index include firms active in the electric vehicles segment or new age automotive vehicles segment (hybrid vehicles, hydrogen fuel-based vehicles and green hybrid vehicles). This also includes manufacturers of electric vehicles, new age automotive vehicles, electric batteries; electric vehicles or electric battery component producers, raw material producers or suppliers for electric vehicle and autonomous vehicle technology segments, companies building autonomous vehicles, and suppliers of autonomous vehicle technologies.
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As of now there are 33 constituents of the index, spread across sectors such as:
- Automobile and Auto Components
- Information Technology
- Chemicals
- Capital Goods
- Oil, Gas & Consumable Fuels
- Consumer Services
What’s the use of this index?
As per NSE Indices, the Nifty EV & New Age Automotive Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products. For example, Mirae Asset AMC is planning to launch the NFO of a scheme tracking this index. The name of the scheme is Mirae Asset Nifty EV and New Age Automotive ETF.
NENAA Index: Return and other details
The index was launched on May 30,2024 with a base date of April 02, 2018 and base value 1000. The index will be rebalanced on a quarterly basis and reconstituted semi-annually.
For the semi-annual review of stocks in the index, average data for six months ending the cut-off data will be considered.
Data shows that that NENAA Index has given 18.91% annualised returns since inception; 28.03% in 5 years and 58.16% in 1 year.
Also Read: Nifty Large Midcap 250 Index Fund Review: Should You Invest?
NENAA Index TRI has given 20.05% annualised returns since inception, 29.28% in 5 years and 59.32% in 1 year.
As per NSE Indices, stocks forming a part of the Nifty 500 are eligible to be a part of the index provided they are involved in the production and supply of electric or new age automotive vehicles, batteries, components, raw materials, and technology.
Top 10 stocks of the index include some top names in the automobile industry, including Bajaj Auto, Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Eicher motors.
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Disclaimer: The above content is for informational purposes only. The 1% News recommends consulting a SEBI-registered investment advisor before making any investment decision.
