NSE Indices launches Nifty500 Ahimsa Index for ethical investing

NSE Indices, a subsidiary of the National Stock Exchange (NSE), launched the Nifty500 Ahimsa Index, a thematic index designed to provide investors with exposure to companies whose business practices are aligned with the principles of Ahimsa (non-violence).

The index comprises 326 companies selected from the Nifty 500 universe that do not engage in activities considered harmful to animals. It has been developed in collaboration with the Ahimsagain Foundation under its Ahimsa Investment Movement (AIM) framework, which classifies companies into Green, Orange and Red categories based on their alignment with Ahimsa principles. Only companies in the Green category are eligible for inclusion.

The index has a base date of 1 April 2016 and a base value of 1,000. It will be rebalanced semi-annually, with constituents weighted based on their free-float market capitalisation.

Since inception (1 April 2016), the index has delivered a 15.11% CAGR return. Over the last five years, it has generated a CAGR of 13.09%, while the one-year total returns stood at -0.98%.

The largest sector allocations are Automobile & Auto Components (13.05%), Capital Goods (12.20%), Information Technology (11.80%) and Financial Services (10.35%).

Top constituents by weight include Bharti Airtel (6.01%), Infosys (3.74%), Mahindra & Mahindra (2.92%), Tata Consultancy Services (2.21%) and Maruti Suzuki India (1.96%).

NSE Indices said the benchmark is intended for investors seeking ethical investment opportunities while maintaining diversified equity market exposure. It is also expected to support the launch of passive investment products such as exchange-traded funds (ETFs), index funds and other structured investment products.