MUMBAI: An arm of NSE, the largest stock exchange in India by turnover, has launched an index constituting stocks of companies from among Nifty 500 companies that do not intentionally harm animals while carrying out their regular business. Named Nifty 500 Ahimsa Index, the gauge is aligned with principles of non-violence, the exchange said through a release.“Nifty500 Ahimsa Index will be attractive to investors who wish to invest in stocks of companies that do not engage in activities that harm animals,” NSE Indices said. “The index has been developed in collaboration with the Ahimsagain Foundation as per their Ahimsa Investment Movement (AIM) framework, which evaluates companies based on the extent to which their products, services and business practices align with Ahimsa principles.”The index could expand investing practices based on the principles of non-violence. “The index is expected to serve as a benchmark for asset managers and facilitate the development of passive investment products, including exchange traded funds (ETFs), index funds and other structured investment solutions,” the release said.Currently at least two mutual fund houses have schemes based on this theme. Quantum mutual fund had launched a fund on this theme in 2024 while last year The Wealth Company MF, one of the newer breed of fund houses, had launched its own scheme.The framework classifies companies into green, orange and red bands. Companies belonging to ‘orange’ and ‘red’ bands are excluded from the index, the release said.Interestingly, none of the bank stocks and Reliance Industries group stocks are included in Nifty 500 Ahimsa index, its fact sheet on NSE Indices site showed. However, all the top software exporters, automobile companies, real estate companies and several from other industries are included in it.According to a release from Ahimsagain Foundation, the AIM’s objective is to redirect ‘capital toward compassion’. According to its brochure, it’s aiming to channelise some of the mutual fund industry’s investments based on the theme of Ahimsa.Total assets managed by India’s mutual fund industry exceed Rs 82 lakh crore, “yet cruelty-free investing remains limited. Many investments indirectly support animal-linked industries,” it said.“Ethical investors lack clear alternatives. (There’s no) simple way to assess portfolios through the lens of animal welfare. (But a) small shift in capital can create a big impact.”