NEW DELHI: The National Stock Exchange (NSE) has launched a new thematic index, the Nifty India Tourism Index. This index will track the performance of Nifty 500 firms that represent the travel and tourism industry.
The index will monitor the top 30 stocks in the basic industries category, chosen by their six-month average free-float market capitalization. Currently, the index includes 17 stocks such as BLS International, Chalet Services, Devyani International, Easy Trip Planners, GMR Airports, Indian Hotels, IRCTC, and InterGlobe Aviation.
The launch comes amidst the Indian government’s continued efforts to promote India as a leading destination for international tourism. Travel and tourism are two of the largest industries in India, contributing approximately $199.6 billion to the country’s GDP (Source: IBEF).
Mukesh Agarwal, CEO of NSE Indices, told media sources that the Nifty India Tourism Index aligns with NSE’s vision to offer innovative indices that reflect market trends. He emphasized that this new index will enable the development of investment products tailored for the tourism industry, offering investors valuable tools to leverage its growth prospects.
To be eligible for inclusion in the travel index, stocks must be part of the Nifty 500 index at the time of review. The weight of each stock in this index is determined by its free-float market capitalization.
Established with a base date of April 1, 2005, and a base value of 1,000, the index undergoes semi-annual reconstitution and quarterly rebalancing. To ensure diversification, no single stock can exceed a weight of 20% in the index. The composition of companies in the index can change during reconstitution, conducted twice a year, while the weights of individual companies are adjusted quarterly to reflect industry dynamics.
The list also includes EIH, Jubilant Foodworks, Lemon Tree Hotels, Mahindra Holidays & Resorts India, Restaurant Brands Asia, Safari Industries, Sapphire Foods India, VIP Industries, and Westlife Foodworld.