The National Stock Exchange (NSE) has introduced a new thematic index, the Nifty India Tourism Index, designed to track the performance of Nifty 500 companies within the travel and tourism sector.
This index will monitor the top 30 stocks in the basic industries category, selected based on their six-month average free-float market capitalization. Currently, the index comprises 17 stocks, including BLS International, Chalet Services, Devyani International, Easy Trip Planners, GMR Airports, Indian Hotels, IRCTC, and InterGlobe Aviation.
The launch aligns with the Indian government’s ongoing efforts to position India as a premier international tourism destination. As per industry estimates travel and tourism are among the largest industries in India, contributing approximately $199.6 billion to the country’s GDP.
Mukesh Agarwal, CEO of NSE Indices, stated that the Nifty India Tourism Index reflects NSE’s commitment to providing innovative indices that capture market trends. He highlighted that this new index will facilitate the creation of investment products specific to the tourism industry, giving investors tools to capitalize on its growth potential.
Eligibility for inclusion in the index requires stocks to be part of the Nifty 500 index at the time of review. The weight of each stock in the 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 20% weight in the index. The composition of companies can change during the bi-annual reconstitution, while individual stock weights are adjusted quarterly to reflect industry dynamics.
The Nifty India Tourism index 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.
