Investors tracking the BSE can now access a slew of new indices, provided by Asia Index Pvt Ltd, a joint venture between S&P Dow Jones Indices and the BSE.
Additional indices The major addition to the list of new indices is the S&P BSE AllCap Index. This is a broad index, whose constituents have an average daily total market cap of over ₹150 crore. The index has a minimum stock count of 700, representing 95 per cent of total market capitalisation.
The constituents of the S&P BSE AllCap are further grouped into the five size-based indices, using descending market capitalisations. These are LargeCap, MidCap, Large MidCap, SmallCap and MidSmallCap.
The essential difference with the new launches is that the number of stocks in an index is flexible, as opposed to a fixed number of, say 200 stocks, in a certain index. Alka Banerjee, CEO, Asia Index Pvt Ltd, said, “Earlier, size classification was rigid. With the new indices, the number of stocks is flexible. The index composition changes along with market movements.”
The other new indices are primarily a revision of certain sectoral indices and three new strategy indices.
Sector-based ones The 10 sector-based sub-indices are Basic Materials, Consumer Discretionary Goods and Services, Energy, Finance, Fast Moving Consumer Goods, Healthcare, Industrials, Information Technology, Telecom and Utilities.
The new indices are expected to provide better representation of these industries with respect to size and sector. Three new strategy indices were launched as well, namely, S&P BSE Sensex 1x Inverse Daily and the S&P BSE Sensex 2x Inverse Daily, meant for structured products going short on the market and the S&P BSE Sensex 2x Leverage Daily, intended for those taking long positions.
For foreign investors, the indices are available in rupee valuations as well as in dollar terms.
The benchmark Sensex and the BSE 100, 200 and 500 will remain unchanged.