NSE Indices launches Nifty AI Catalysts Index

NSE Indices, the index services subsidiary of the National Stock Exchange of India, has launched the Nifty AI Catalysts Index, a new thematic index designed to track companies positioned to support the development of India's artificial intelligence economy.

The index provides exposure to companies involved in critical infrastructure and services supporting AI deployment and adoption. These include computing and IT infrastructure, connectivity, power and electrification, cooling systems, engineering and construction, and cables and materials supporting digital infrastructure.

NSE Indices said the index is designed to capture the broader investment opportunity arising from rising AI adoption, including expected investments in data centres, computing capacity, energy infrastructure and connectivity networks.

The Nifty AI Catalysts Index follows a rules-based methodology and comprises 48 constituents. Stocks are weighted based on free-float market capitalisation, subject to a maximum weight of 3% for an individual stock.

The index has a base date of 28 June 2024 and a base value of 1,000. It was launched on 11 September 2026. The index will be reconstituted semi-annually in June and December and rebalanced quarterly in March, June, September and December.

The index's sector representation is led by capital goods at 32.02%, followed by power at 22.33%, telecommunications at 12.51%, metals and mining at 12.25%, information technology at 5.31% and construction at 5.15%. Consumer durables, chemicals, automobile and auto components and services account for the remaining weight.

Among the top constituents by weight are HCL Technologies at 3.63%, Bharat Heavy Electricals at 3.26%, Hindalco Industries at 3.21%, Jindal Steel at 3.14%, Indus Towers at 3%, Bharti Airtel at 3%, Tata Steel at 2.96%, Larsen & Toubro at 2.96%, Polycab India at 2.94% and Hitachi Energy India at 2.94%.

The index had a total return of 29.98% over one year, according to the factsheet. Since inception (28 June 2024), the total return was 5.47%.

The index is intended to serve as a benchmark for asset managers and as a reference index for passive investment products such as exchange-traded funds, index funds and structured products.

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