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NSE Launches Nifty India Tourism Index to Track Travel and Tourism Stocks

Published 19-06-2024, 09:41 am
© Reuters

The National Stock Exchange's subsidiary, NSE Indices Limited, has introduced a new thematic index named the Nifty India Tourism Index, aimed at capturing the performance of travel and tourism-related stocks within the Nifty 500 Index. This new index underscores the Indian government's ongoing efforts to bolster tourism, which contributes significantly to the nation's economy, accounting for approximately $199.6 billion to the GDP.

Mr. Mukesh Agarwal, CEO of NSE Indices, highlighted that the Nifty India Tourism Index is part of NSE’s broader strategy to provide innovative indices that align with market trends. He noted, "The launch of the Nifty Tourism Index will enable the creation of products that offer asset managers opportunities to invest in the tourism sector, thereby equipping investors with valuable tools to capitalize on the industry's growth and resilience."

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The Nifty India Tourism Index, with a base date of April 1, 2005, and a base value of 1000, will undergo semi-annual reconstitution and quarterly rebalancing. Initially, it includes 17 stocks from the Nifty 500, chosen based on their relevance to the travel and tourism theme. These stocks are expected to serve as a benchmark for asset managers and a reference for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products.

Notably, InterGlobe Aviation (NS:INGL) Ltd., the parent company of IndiGo, holds the highest weight in the index at 20.01%. It is followed closely by Indian Hotels Co. (NS:IHTL), a Tata Group company, with a 19.89% share, and the state-owned Indian Railway Catering And Tourism Corp. at 14.4%. Other significant constituents include GMR Airports Infrastructure Ltd. with a 9.72% share and Jubilant Foodworks (NS:JUBI) Ltd., the operator of Dominos Pizza in India, with an 8.78% share.

This initiative is in line with NSE's recent endeavors to cater to emerging market trends. Last month, NSE launched India’s first index focused on electric mobility, the Nifty EV and New Age Automotive Index, which tracks companies involved in the electric vehicle ecosystem and new-age automotive technologies. NSE's portfolio of thematic indices also includes Nifty Commodities, Nifty Energy, Nifty Infrastructure, Nifty India Manufacturing, and Nifty India Defence.

The Nifty India Tourism Index is expected to play a pivotal role in enhancing investment opportunities within the tourism sector, reflecting the sector's dynamism and potential for growth. It aims to provide a robust framework for investors seeking to leverage the economic contributions and future prospects of India's travel and tourism industry.

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