Page 91 - Connect 2024-25

Nifty India Tourism Index

Fund

Aman Mulay & Sneha Wavre, PGDM – I

NSE launched the Nifty India on June 18, 2024,
and, the Nifty India Tourism Index was introduced,
comprising 17 stocks, to reflect the performance of the the highest weightage in the sector with
travel and tourism industry. The tourism industry has 20.01%. Indian Hotels owned by the Tata
undergone a profound transformation in recent years, Group comes in second with a weightage
shaped by changing traveler preferences, technological of 19.89%. IRCTC, the ticketing platform,
advancements, and global events. is weighted 14.40%, whereas GMR Airports is
The goal of the Nifty India Tourism Index is to monitor weighted 9.72%.
the performance of the travel and tourism-related stocks Other notable companies with substantial shares in the
found in the Nifty 500 Index. The largest 30 stocks from index include Lemon Tree Hotels, Sapphire Foods India,
eligible basic industries are selected based on a 6-month Devyani International, Jubilant FoodWorks, EIH, and
average free-float market capitalization at the time of Westlife Foodworld.
review; stocks that are a part of the qualifying basic
industries are eligible to be included in the universe. Conclusion
India’s tourism growth can positively impact the stock Travelling has never been more exciting thanks to Nifty
market in several ways. Companies in the hospitality Tourism, which combines technology and custom travel
sector, such as hotels, airlines, and travel agencies, experiences to give customers efficient and customized
frequently see an increase in revenue as tourism grows. travel experiences. Travel is becoming more accessible,
These companies’ stock prices may rise as a result of sustainable, and engaging as a result of the industry’s
their improved financial performance. Strong tourism use of virtual platforms, AI, and data-driven insights to
can support broader economic expansion, which boosts redefine how people discover new places. The industry’s
consumer confidence and expenditure. As a result, ongoing innovation will keep improving customer
investors may perceive that the economy is doing better experiences as it adjusts to new challenges and trends
overall, which could improve stock market performance. like smart technology integration and sustainable
The Nifty India Tourism index currently has 17 stocks, tourism. With countless opportunities for both travellers
but it can have up to 30 stocks. and companies, Nifty Tourism is well-positioned to
IndiGo (Inter Globe Aviation), an airline operator, holds influence travel in the future.

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