NSE Indices, a subsidiary of the National Stock Exchange (NSE), has introduced the Nifty500 Ahimsa Index, a new thematic benchmark designed for investors seeking ethical and values-based investment opportunities.
The index tracks companies from the broader Nifty 500 universe whose business practices align with the principle of Ahimsa, or non-violence.
It has been developed in collaboration with the Ahimsagain Foundation and applies a specialised ethical screening framework based on the foundation’s Ahimsa Investment Movement (AIM) methodology.
Unlike traditional environmental, social and governance (ESG) indices, the Nifty500 Ahimsa Index focuses specifically on identifying companies that avoid business activities involving harm to animals.
Companies are assessed and classified into three categories — Green, Orange and Red. Firms placed in the Orange and Red categories are excluded from the index.
The benchmark allows investors to maintain diversified exposure to Indian equities while incorporating ethical preferences into their portfolios.
Companies included in the index are weighted according to their free-float market capitalisation, making the benchmark suitable for the development of passive investment products such as exchange-traded funds (ETFs) and index funds.
The Nifty500 Ahimsa Index has a base date of April 1, 2016, with a base value of 1,000.
NSE Indices said the index will undergo semi-annual rebalancing to ensure that all constituent companies continue to comply with the prescribed ethical standards.
The launch comes at a time when thematic investing is gaining popularity among investors looking beyond traditional financial metrics and seeking portfolios aligned with social, environmental and ethical values.
The new index expands the range of specialised investment themes available in India’s capital markets and provides fund managers an opportunity to create products focused on ethical investing principles.
The move follows a similar initiative by BSE Index Services, a wholly owned subsidiary of the Bombay Stock Exchange, which recently launched the BSE Saatvik 100 Index.
The exchange described it as India’s first Saatvik index based on the BSE 500 universe, aimed at investors looking to align investments with Saatvik principles.
With increasing investor interest in responsible and purpose-driven investing, exchanges are developing new benchmarks that combine market performance with specific ethical and social considerations.
