NSE Launches Nifty India Tourism Index As New Thematic Gauge
The index comprises of a maximum of 30 stocks and the weight of each stock, capped at 20%, is based on free float market capitalisation.
NSE Indices Ltd., a subsidiary of the National Stock Exchange Ltd., launched a new thematic index—Nifty India Tourism—on Tuesday to track the performance of stocks from the Nifty 500, which represent the travel and tourism theme.
At present, 17 stocks are part of the Nifty India Tourism, which will be reconstituted semi-annually and rebalanced on a quarterly basis. It has a base date of April 1, 2005, and a base value of 1,000, NSE said in a statement.
The index will comprise a maximum of 30 stocks and the weight of each stock, capped at 20%, is based on free-float market capitalisation.
Stocks which are going to be a part of the Nifty 500 at the time of review are eligible for inclusion in the index. Stocks forming part of the eligible basic industries shall be eligible to be included from the universe at the time of review, according to a factsheet.
Nifty India Tourism Index Breakup
IndiGo parent InterGlobe Aviation Ltd. has the highest representation, with a weight of 20.01% in the Nifty India Tourism, followed by Tata Group company Indian Hotels Co.'s share of 19.89%, and state-owned Indian Railway Catering And Tourism Corp.'s 14.4%.
GMR Airports Infrastructure Ltd. and Dominos Pizza operator Jubilant Foodworks Ltd. have 9.72% and 8.78% share in the index, respectively.
In terms of sectoral representation, consumer services companies constitute 66.98%, services take up 29.73%, and consumer durables 3.29%.
"The launch of the Nifty Tourism Index will facilitate the creation of products, which will create opportunities for asset managers to invest in the tourism industry, thereby providing valuable tools for investors aiming to capitalise on the growth and resilience of this vibrant industry," said NSE Indices Chief Executive Officer Mukesh Agarwal.
The Nifty India Tourism is expected to serve as a standard for asset managers and be a benchmark monitored by passive funds through exchange-traded funds, index funds, and structured products.
Last month, the bourse launched India’s first index focused on electric mobility, highlighting the once-in-a-century shift underway in the wider automotive sector. The Nifty EV and New Age Automotive index aims to track the performance of companies, which form a part of the EV ecosystem or are involved in the development of new-age automotive vehicles or related technology.
NSE also has other thematic indices like Nifty Commodities, Nifty Energy, Nifty Infrastructure, Nifty India Manufacturing and Nifty India Defence.
