NSE Launches Nifty India Tourism Index For Tourism Stocks

The National Stock Exchange has launched a new thematic index named the Nifty India Tourism Index. The index has been created to capture the performance of travel and tourism related stocks within the Nifty 500 Index. The index has been launched by NSE Indices Limited, a subsidiary of the National Stock Exchange.

The new index is in line with the burgeouning tourism, travel and hospitality sector. The government has been taking major steps to boost tourism in India, which contributes to approximately $200 billion to India’s GDP.

NSE View

Mukesh Agarwal, CEO of NSE Indices said that the Nifty India Tourism Index is part of NSE’s broader strategy to provide innovative indices that align with market trends. “The launch of the Nifty Tourism Index will enable the creation of products in the stock market 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,” he said.

The Index

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.

The Composition

InterGlobe Aviation, the parent company of IndiGo, holds the highest weight in the index at 20.01%. It is followed closely by Taj Group parent company Indian Hotels with a 19.89% share, and the state-owned Indian Railway Catering And Tourism Corp. (IRCTC) at 14.4%. Other significant constituents include GMR Airports Infrastructure Ltd. with a 9.72% share and Jubilant Foodworks , 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.