Non-violence meets the stock market: NSE’s new Nifty500 Ahimsa Index explained

A new stock market index in India is screening companies not just for financial performance, but for alignment with the principle of Ahimsa, or non-violence. NSE Indices Limited, the index services subsidiary of the National Stock Exchange, has launched the Nifty500 Ahimsa Index, a thematic index tracking companies from the Nifty 500 universe that meet this criteria.

The index is designed for investors seeking exposure to companies whose business practices align with animal welfare considerations. It was developed with the Ahimsagain Foundation under its Ahimsa Investment Movement, or AIM, framework, which assesses companies based on their products, services and overall business practices, sorting them into Green, Orange and Red categories. Only Green-category companies are eligible for inclusion, while Orange and Red-rated companies are excluded, ANI reported.

NSE Indices said the launch reflects growing demand for thematic and responsible investment products that combine market exposure with specific sustainability and ethical considerations. ‘The index offers market participants a transparent, rules-based benchmark that integrates ethical considerations with broad-based equity market exposure,’ the company said.

The Nifty500 Ahimsa Index will comprise companies selected from the diversified Nifty 500 universe, allowing representation across sectors while applying the Ahimsa-based screening criteria. It has a base date of April 1, 2016, with a base value of 1,000.

Its constituents will be reviewed and rebalanced semi-annually, with stock weights determined based on free-float market capitalisation, and the benchmark is expected to support fund managers and the creation of passive investment products such as ETFs and index funds.