BSE Capital Markets Index: BSE gets a new index to track sector performance

Synopsis

BSE Index Services has introduced the BSE Capital Markets Index to benchmark companies in India’s capital markets sector, aiding investors, fund managers, and institutions with transparency, sector tracking, and passive product creation.

BSE Index Services, a wholly owned subsidiary of the BSE, has launched a new benchmark — the BSE Capital Markets Index, aimed at capturing the performance of companies operating in India’s capital markets industry.

The index is designed to measure the returns of all companies classified under the Capital Markets segment, as per the exchange’s third-level industry classification. Its components are drawn from the BSE 1000 Index, ensuring representation across a wide universe of listed entities.

According to a release, the index is computed using the float-adjusted market capitalization method, a globally accepted approach that assigns weights to companies based on their free-float market cap rather than total market capitalization. The base value of the index has been set at 1000, with the first value date fixed as June 18, 2018. Reconstitution of the index will take place semi-annually, in June and December, in line with global best practices.

The introduction of the Capital Markets Index expands BSE’s growing number of sectoral indices and provides investors and fund managers with a focused tool to track the performance of the country’s financial market intermediaries.

The exchange noted that the index can serve multiple purposes, ranging from the creation of passive investment products such as Exchange Traded Funds (ETFs) and index funds to benchmarking Portfolio Management Services (PMS), mutual fund schemes, and other investment portfolios.

The launch of the new index comes at a time when India’s financial sector is witnessing rapid growth, with rising investor participation, deepening liquidity, and greater institutional activity in capital markets. By offering a dedicated benchmark for this industry, BSE aims to provide better transparency, facilitate product innovation, and enable investors to diversify strategies in line with sectoral trends.

With this launch, BSE has further strengthened its positioning as a leading provider of indices tailored to India’s evolving investment landscape. The Capital Markets Index is expected to attract interest from both domestic and global investors looking to track and participate in the performance of India’s capital markets sector.

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