3 days Ago By Avijit Ghosal
A new generation of indices is emerging, each offering targeted access to specific sectors, themes, and megatrends shaping the country’s economic future, Abhijit Shah, chief marketing and digital business officer, ICICI Prudential AMC told News9live. Kolkata: While the broad-based indices have captured the attention of the average Indian investor for years, the investment canvas is changing radically with the emergency of new indices, which are enabling investors to pick sectors and themes and sharp focus their money in such sectors. Through curated stock baskets these indices are helping Indian investors to mature very fast and take calculated risks to enhance their portfolio.
Against this backdrop, chief marketing and digital business officer of ICICI Prudential AMC Abhijit Shah told News9live how investors can gain from the index revolution in the market. “The index choices are particularly empowering for retail investors,” he remarked. Read on.
Has the role of indexes gone beyond the traditional role of market barometer? Ans: For decades, the Nifty 50 has been the trusted market barometer for Indian investors—a dependable gauge of economic sentiment and a symbolic pulse of corporate India. But in today’s evolving investment landscape, it’s no longer the only game in town. A new generation of indices is emerging, each offering targeted access to specific sectors, themes, and megatrends shaping the country’s economic future.
This surge in index innovation is redefining the way Indians can invest. What we are witnessing is the evolution of market barometers, with a growing family of indices that reflect not just broad-based market movements, but the dynamic undercurrents of a transforming economy. What is the kind of overall coverage span of indexes now in the market? How it is increasingly getting useful to the investors? Ans: The indices are spanning to everything from PSU banks to manufacturing, innovation, infrastructure, and even ESG—are more than statistical tools.
They represent investment-ready stories, curated baskets of companies that align with national policy thrusts, emerging consumption patterns, and technological progress. The rise of thematic indices also signals the growing maturity of India’s capital markets. It reflects the shift from passive benchmarking to active engagement – It allows investors to not just track markets, they participate in the country’s growth themes directly.
These indices are not just market snapshots, they are opportunities—ways to participate in the structural transformation of India’s economy. And with the right tools in hand, investors can position themselves to benefit from it. How are the indexes contributing towards empowering retail investors who lack the required expertise and resources? Ans: The index choices are particularly empowering for retail investors.
Where once it took time, expertise, and resources to build a portfolio around a theme, now investors can do so through passive instruments like Exchange-Traded Funds (ETFs) or index funds. These tools offer diversification, transparency, and cost-efficiency—all critical ingredients for long-term wealth creation. Moreover, the availability of such indices supports more nuanced and strategic portfolio construction.
For instance, an investor bullish on government capex can allocate to infrastructure-linked indices, while someone aiming for defensive stability might explore healthcare or consumption-oriented indices. The options are no longer limited to the broad market; they are bespoke, purposeful, and increasingly aligned with investor aspirations. Investors are increasingly opting for investments in Index funds, is it really a suitable option for long term wealth creation? Ans: As the index universe continues to expand, the future of investing in India looks more inclusive, more thematic, and more democratic than ever before.
For investors willing to look beyond the headline numbers, a rich tapestry of opportunities awaits—each one a market barometer in its own right. For example, in a time when information is abundant but attention is scarce, thematic and sectoral indices offer clarity. They break down complexity and give investors the ability to back a belief, a story, a vision—whether that’s India becoming a manufacturing powerhouse, digitizing its services economy, or building out sustainable infrastructure.
Click for more latest Personal Finance news . Also get top headlines and latest news from India and around the world at News9. Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades.
He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network..
