NSE launches REITs & InvITs index to track 6 securities; to help investors benchmark high yield investments NSE Indices Limited, a subsidiary of the National Stock Exchange, launched India’s first-ever Real Estate Investment Trusts (REITs) & Infrastructure Investment Trusts (InvITs) Index called the Nifty REITs & InvITs Index on Monday, comprising six listed REITs and InvITs. The index will track the performance of publicly listed or traded REITs and InvITs at the National Stock Exchange. The securities’ weights within the index are based on their free-float market capitalization, subject to a security cap of 33% each. The aggregate weight of the top three securities is capped at 72%. The Nifty REITs & InvITs Index has a base date of July 1, 2019, and a base value of 1000. It will be reviewed and rebalanced quarterly. According to data released by NSE, the Nifty REITs & InvITs Index’s price return has been -4.13% quarter-to-date (QTD), and the total return is -2.17% QTD. The one-year price return has been -8.97%, and the total return for the year is -1.74%. However, the index has shown a total return of 10.48% since inception including dividends, with a price return of 0.22% since its inception. The price-to-earnings (P/E) ratio of the index is 49.07; and its dividend yield is as high as 8.17%. The launch of the Nifty REITs & InvITs Index provides investors with more options to diversify their portfolios and take advantage of the growth potential of the real estate and infrastructure sectors in India. Mukesh Agarwal, CEO of NSE Indices, said, “The launch of the Nifty REITs & InvITs Index aligns with NSE’s vision to provide market representative benchmarks for different asset classes. The index will track the performance of publicly listed REITs & InvITs and act as a benchmark for active funds.”
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.