# NSE’s Ahimsa Index puts ethical investing to the test, sacrificing returns for values 2026-08-08T11:02:23+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet The National Stock Exchange launched the Nifty 500 Ahimsa Index, which excludes companies involved in animal cruelty, sin goods, and other activities deemed unethical. Unlike broad-market indices, it follows a values-based exclusion strategy, screening out firms in the 'orange' and 'red' bands as classified by the Ahimsagain Foundation. The index includes 326 companies from the Nifty 500, weighted by free-float market capitalisation, making it suitable for ETFs and passive investing. The move reignites a centuries-old debate between Homo Oeconomicus, the rational wealth-maximiser, and Homo Ethicus, the values-driven investor. Academic research, including work by Hong and Kacperczyk on 'sin stocks', suggests that ethical screens reduce the investment universe, potentially lowering risk-adjusted returns. While ethical investing provides non-pecuniary utility, the index may sacrifice financial alpha, as higher demand for ethical stocks can inflate prices and depress future returns. ## Coverage - thehindu.com Tags: Ahimsa Index, ethical investing, NSE, portfolio theory, sin stocks, value-based investing Canonical: https://indianopinion.org/nses-ahimsa-index-puts-ethical-investing-to-the-test-sacrificing-returns-for-values/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nses-ahimsa-index-puts-ethical-investing-to-the-test-sacrificing-returns-for-values/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.