NSE Indices, a unit of the National Stock Exchange (NSE), has launched the Nifty500 Ahimsa Index, a thematic benchmark aimed at investors interested in ethical, values-driven investment options.The index tracks companies from the broader Nifty 500 universe whose business practices align with the principle of Ahimsa, or non-violence.
It was created in partnership with the Ahimsagain Foundation and employs a dedicated ethical screening framework derived from 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 evaluated and grouped into three segments—Green, Orange, and Red. Those falling into the Orange and Red segments are omitted 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 coincides with a period when thematic investing is becoming increasingly popular among investors who are looking past conventional financial indicators and seeking portfolios that reflect social, environmental, and ethical principles.
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 characterized it as India’s inaugural Saatvik index derived from the BSE 500 universe, designed for investors seeking to align their portfolios with Saatvik principles. As investor demand for responsible, purpose-driven investing grows, exchanges are creating new indices that merge market performance with defined ethical and social criteria.
