BSE Capital Markets Index: BSE gets a new index to follow the performance of the sector

BSE Index Services, a full subsidiary of the BSE, has launched a new benchmark – the BSE Capital Markets Index, aimed at recording the performance of companies active in the Indian capital marking industry.

The index is designed to measure the return of all companies classified in the context of the capital markets segment, according to the industrial classification on the exchange. The components come from the BSE 1000 index and ensure representation in a wide universe of mentioned entities.

According to a release, the index is calculated using the market capitalization method -corrected by the Float, a globally accepted approach that assigns weights to companies based on their free market capitalization instead of total market capitalization. The basic value of the index has been set at 1000, with the first date of value as 18 June 2018. Reconstitution of the index will take place half -yearly, in June and December, in line with global best practices.

The introduction of the capital markets index is expanding the growing number of sectoral indices of BSE and offers investors and fund managers a targeted tool to follow the performance of the financial market between the financial market.

The stock market noted that the index can serve several purposes, ranging from creating passive investment products such as Exchange Trade Funds (ETFs) and index funds to Benchmarking Portfolio Management Services, investment funds and other investment portfeuilles.

The launch of the new index comes at a time when the financial sector of India witnesses rapid growth, with rising investors participation, deepening of liquidity and greater institutional activity on capital markets. By offering a special benchmark for this industry, BSE wants to offer better transparency, facilitate product innovation and enable investors to diversify strategies in accordance with sectoral trends. With this launch, BSE has adapted its positioning as a leading provider of indices to the evolving investment landscape of India. The index of the capital markets is expected to attract interest from both domestic and global investors who want to follow and participate in the performance of the Indian capital market sector.