BT Explainer| Nifty 500 Ahimsa Index: What it is, which companies are included and more 

NSE Indices, a subsidiary of the National Stock Exchange, has launched the Nifty 500 Ahimsa Index, a new index designed to track companies that follow business practices aligned with the principle of non-violence towards animals. The index includes select companies from the Nifty 500 universe that, according to a defined screening framework, do not intentionally engage in activities that harm animals during the course of their business operations.

The weight of each stock is based on its market value. This makes it easy for asset managers to create ethical Exchange Traded Funds (ETFs) or index funds.

Bharti Airtel, (6.01%), Infosys (3.74%), Mahindra & Mahindra Ltd (2.92%), Tata Consultancy Services (2.21%), Maruti Suzuki India (1.96%), NTPC (1.80%), BSE (1.68%), Tata Steel (1.66%), Hindalco Industries (1.48%) and Adani Ports and Special Economic Zone (1.42%) are the top constituents of the index by weightage. 

The index contains 326 stocks. The rebalancing of the index will be done semi-annually in March and September. The weight of each stock is based on its free-float market capitalisation.

NSE Indices said the benchmark has been created in collaboration with the Ahimsagain Foundation using its Ahimsa Investment Movement (AIM) framework. The framework evaluates listed companies on the basis of their products, services and business practices to determine whether they comply with Ahimsa, or non-violence, principles.

According to the exchange, the new index is aimed at investors seeking ethical investment opportunities that incorporate animal welfare considerations into portfolio construction.

Beyond serving as an investment benchmark, the exchange expects the index to encourage the development of passive investment products such as exchange-traded funds (ETFs), index funds and other structured offerings built around ethical investing.

The launch also reflects the growing interest in thematic investing based on environmental, social and governance (ESG) considerations, while extending the concept to include animal welfare.

The AIM framework categorises companies into three groups—green, orange and red—based on their level of alignment with Ahimsa principles. Only companies classified in the green category qualify for inclusion, while those placed in the orange and red categories are excluded from the index.

A review of the index constituents reveals that it does not include any banking stocks. However, the benchmark features a broad range of companies across sectors, including leading information technology firms, automobile manufacturers, real estate developers and businesses from several other industries that satisfy the eligibility criteria.