NSE’s index services subsidiary, NSE Indices Limited launched a new thematic index earlier this week on Tuesday, 18th June, 2024.
The Nifty India Tourism Index is designed to monitor the performance of stocks from the Nifty 500 Index which represents the travel and tourism theme.
This index includes up to the largest 30 stocks from eligible basic industries that are selected based on a 6-month average free-float market capitalisation.
Eligibility for inclusion is determined by stocks that are a part of the Nifty 500 index at the time of the review, with the stock weights capped at 20 percent.
The Government of India has consistently taken a proactive role in framing policies related to tourism adoption within the country, positioning India as a leading country in terms of international tourism expenditure.
The travel and tourism sectors represent some of India’s largest industries, collectively contributing approximately US$ 199.6 billion to the country’s Gross Domestic Product (GDP).
The base date for the Nifty India Tourism Index is April 01, 2005, and the base value is 1000, and the index will be reconstituted semi-annually and rebalanced on a quarterly basis.
The new index is anticipated to serve as a benchmark for asset managers and to be tracked as a reference index by passive funds in the form of Exchange Traded Funds (ETFs), index funds, and structured products.
The CEO of NSE Indices highlighted that the introduction of the Nifty India Tourism Index is in line with NSE’s strategic focus on developing cutting-edge indices that reflect current market dynamics.
He further mentioned that this new index is expected to pave the way for the creation of financial products tailored to the tourism sector, offering asset managers opportunities to invest in this robust industry. By doing so, it aims to furnish investors with valuable tools to leverage the growth and resilience inherent in the tourism sector.
Currently, InterGlobe Aviation, IRCTC, Indian Hotels, GMR Airports, Easy Trip Planners, Devyani International, Chalet Services, and BLS International, are among the 17 stocks featured in the index.
Here is a list of top stocks with their weights that are part of the new Nifty
Tourism index, the same is displayed in the table below:
| Company’s Name | Weight(%) |
| InterGlobe Aviation Ltd. | 20.01 |
| Indian Hotels Co. Ltd. | 19.89 |
| Indian Railway Catering And Tourism | 14.4 |
| GMR Airports Infrastructure Ltd. | 9.72 |
| Jubilant Foodworks Ltd. | 8.78 |
| EIH Ltd. | 4.26 |
| Lemon Tree Hotels Ltd. | 3.11 |
| Sapphire Foods India Ltd | 2.92 |
| Devyani International Ltd. | 2.76 |
| Westlife Foodworld Ltd. | 2.58 |
Written by Shivani Singh
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