Responsible investing gets a new benchmark: NSE Indices launches Nifty500 Ahimsa Index

NSE Indices Limited, the index services subsidiary of the National Stock Exchange, said the launch of its new Nifty500 Ahimsa Index reflects growing demand for thematic and responsible investment products that combine market exposure with specific sustainability and ethical considerations.

‘The index offers market participants a transparent, rules-based benchmark that integrates ethical considerations with broad-based equity market exposure,’ NSE Indices said, announcing the new thematic index, which tracks companies from the Nifty 500 universe that align with the principles of ‘Ahimsa,’ or non-violence.

The index was developed in collaboration with the Ahimsagain Foundation under its Ahimsa Investment Movement, or AIM, framework, and is designed for investors seeking exposure to companies whose business practices align with animal welfare considerations. Under the AIM framework, companies are assessed based on their products, services and overall business practices, and classified into Green, Orange and Red categories, with only Green-category companies eligible for inclusion.

The Nifty500 Ahimsa Index draws from the diversified Nifty 500 universe, allowing representation across sectors while applying the Ahimsa-based screening criteria. NSE Indices said the benchmark is expected to support fund managers and the creation of passive investment products such as exchange-traded funds, index funds and other structured investment solutions.

The index has a base date of April 1, 2016, with a base value of 1,000. Its constituents will be reviewed and rebalanced semi-annually, with stock weights determined based on free-float market capitalisation.