The BSE Bankex reshuffle comes into effect today. Canara Bank included among 4 new shares

The reconstruction of the BSE BANKEX index came into effect from December 26, with four new banking entities added to the index. With effect from today, shares of Canara Bank, AU Small Finance Bank, Punjab National Bank (PNB) and Union Bank of India have been included in the said index.No exclusions have been made as part of this rebalance, and the index now consists of 14 constituents with a revamped weighting structure that caps the top three stocks at 45%.

The update follows an earlier announcement from BSE Index Services detailing revisions to multiple indices including BSE SENSEX, BSE 100 and BSE SENSEX 50, among others.The inclusion of new constituents in the BSE BANKEX is part of a broader index restructuring aimed at realigning its composition based on prevailing market dynamics and eligibility criteria.

This development comes at a time when BSE is actively working to strengthen its offerings in the derivatives segment.

BSE MD and CEO Sundararaman Ramamurthy had earlier stated that the exchange aims to make BANKEX a prominent product by promoting monthly derivatives. BSE aims to expand its monthly derivatives offering, with plans to roll out additional products expected to be economically meaningful to the broader market.

BSE has witnessed significant growth in the derivatives segment, especially since the relaunch of SENSEX derivatives in May 2023. The SENSEX derivatives alone have gained a market share of over 45% in terms of contracts, coming close to NSE’s Nifty in this regard. The exchange also recorded a notional revenue market share of 43.5% in the F&O segment and a premium market share of 25.9% in November, according to Motilal data. Oswal.

Strategic moves such as product launches, switching expiration dates and deepening the duration of index products have added to BSE’s momentum. BSE’s SENSEX derivatives currently enjoy a 99.9% correlation with Nifty, and the product now sees participation from over 550 brokers and 435 foreign portfolio investors.

Brokerage B&K Securities noted that the focus on expanding trading in longer-dated contracts and increasing non-expiry engagement aligns with BSE’s objective of increasing market depth and improving premium quality. The index revision and product developments are part of BSE’s strategy to maintain its position in index options in the coming years, especially during FY26 to FY28.

“BSE remains well positioned to maintain steady growth and market share growth in the index options space,” said Swarnabha Mukherjee of B&K Securities, noting that BSE’s market share gains have been driven by the introduction of new products such as SENSEX and BANKEX contracts, strategic rotation of expirations and a focus on deepening the maturity of the SENSEX product.

“Incrementally, we expect more customers and members to come on board, and the colocation sector to scale up to drive volume growth and premium quality of derivatives,” Mukherjee added.

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