Archive · 23 Jul 2026
Indian Stock Exchanges Launch Virtue-Based Indices
Indian stock exchanges BSE and NSE have introduced new stock indices that focus on ethical investing.
The BSE Saatvik 100 includes companies that align with principles like non-violence and avoiding harmful products.
The NSE 500 Ahimsa sorts companies into categories based on their impact on animals.
These indices aim to attract investors who want their money to support good values.
While they have shown good returns in the past, they face challenges in maintaining ethical purity and differentiating from existing sustainable investment options.
Investors now have more choices to align their portfolios with their ethical beliefs.
BSE and NSE launched virtue-based indices: BSE Saatvik 100 and NSE 500 Ahimsa.
Saatvik 100 follows principles of non-violence, compassion, and avoidance of toxic products.
Ahimsa index categorizes companies into Green, Orange, and Red bands based on animal harm involvement.
Indices aim to attract ethical investors and offer values-based investment opportunities.
Past performance shows good returns, but ethical purity and differentiation from ESG investments remain challenges.
- Who
- BSE and NSE, Indian stock exchanges.
- What
- Launched virtue-based indices: BSE Saatvik 100 and NSE 500 Ahimsa.
- When
- In the past month.
- Where
- India.
- Why
- To attract ethical investors and offer values-based investment opportunities.
Proponents of Virtue-Based Investing
Critics of Virtue-Based Investing
Market Potential
Proponents of Virtue-Based Investing
The indices could attract ethical investors, including domestic and foreign institutions, and offer new investment opportunities.
Critics of Virtue-Based Investing
The indices may not significantly differ from existing ESG investments, limiting their appeal and uniqueness.
Ethical Purity
Proponents of Virtue-Based Investing
The indices provide a framework for investors to align their portfolios with their ethical values.
Critics of Virtue-Based Investing
Ethical purity is challenging to maintain, especially with intermediaries like banks that finance a wide range of businesses.
- BSE Saatvik 100
- Index based on principles of non-violence, compassion, and avoidance of toxic products.
- NSE 500 Ahimsa
- Index categorizing companies into Green, Orange, and Red bands based on animal harm involvement.
- Market Performance
- Saatvik 100: 3-year CAGR 12.22%, 5-year CAGR 11.11%. Ahimsa: 5-year CAGR 13.09%.
- Overlap with ESG
- 26.92% overlap between Nifty 100 ESG and Saatvik 100.
- Sector Exposure
- Saatvik 100 has 40% exposure to banks; Ahimsa offers greater sectoral diversity.