NSE Indices Limited has introduced the Nifty500 Ahimsa Index, a thematic benchmark designed to track companies from the Nifty 500 universe whose business operations are aligned with the principle of 'Ahimsa', or non-violence. According to the company's press release, the index has been launched on July 10, 2026, targeting investors seeking ethical investment opportunities that incorporate animal welfare considerations into portfolio construction. The index has April 1, 2016 as its base date and a base value of 1,000, with reconstitution occurring twice a year based on free-float market capitalisation. Stocks that form part of, or are set to form part of, the Nifty 500 Index at the time of review are eligible for inclusion, with the weight of each constituent stock determined by its free-float market capitalisation.
The index has been developed jointly with the Ahimsagain Foundation and is based on the foundation's Ahimsa Investment Movement (AIM) framework. The AIM framework assesses companies by evaluating how closely their products, services and business practices adhere to Ahimsa principles. According to NSE Indices, the framework classifies companies into green, orange and red categories, with companies classified under the orange and red bands excluded from the index, while eligible companies in the green category are selected in accordance with the index methodology. The framework has assessed more than 1,100 companies listed on the NSE and BSE using the AQ Framework, ensuring only those businesses that align with sustainable and cruelty-free practices are included in the final selection.
The launch represents NSE's expansion into thematic and ESG-focused indices, providing investors with an opportunity to incorporate ethical screening into their portfolios while maintaining exposure to the broader Indian equity market. As reported by NSE Indices, the index is aimed at investors seeking ethical investment opportunities that incorporate animal welfare considerations into portfolio construction. Recent market data shows that NSE's back-testing puts the Ahimsa index's five-year CAGR at 13.09% as of June 30, demonstrating the potential for ethical investing to deliver competitive returns. The performance comes as India's exchanges place bets on virtue-based investing, with the BSE Saatvik 100 delivering a three-year CAGR of 12.22% and a five-year CAGR of 11.11% as of May 29. However, these are historical or back-tested index returns rather than guaranteed future performance.
The Nifty500 Ahimsa Index comprises 326 stocks across a diverse set of sectors, with automobile and auto components accounting for the largest share at 13.05%, followed by capital goods (12.20%), information technology (11.80%), and financial services (10.35%). The index includes companies from metals and mining, telecommunication, power, oil, gas and consumable fuels, construction materials, consumer durables, healthcare, and services sectors. Top constituents by weight include 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%). The index excludes most Reliance Group companies, with the exception of Reliance Power, along with pharmaceutical companies that use animal testing, dairy, meat, poultry and leather businesses, fashion brands, retail chains and cosmetics companies.
