BSE launches 14 new sector indices, expands BSE 500-based suite to 20 benchmarks

BSE Index Services, a wholly owned subsidiary of BSE Ltd, has launched 14 new sectoral indices based on the BSE 500 universe, expanding its sector-specific benchmark offering to 20 indices as it looks to deepen its presence in the passive investment and benchmarking ecosystem.

The launch comes alongside the renaming and revision of six existing sector indices, with the changes aimed at aligning the benchmarks with a common sector index framework.

The six existing indices — BSE Auto, BSE Capital Goods, BSE Consumer Durables, BSE Metal, BSE Oil & Gas and BSE Realty — have been renamed BSE 500 Auto, BSE 500 Capital Goods, BSE 500 Consumer Durables, BSE 500 Metals, BSE 500 Oil & Gas and BSE 500 Realty, respectively.


The 14 new indices cover Chemicals, Construction, Construction Materials, Consumer Services, Diversified, FMCG, Financial Services, Healthcare, Information Technology, Media Entertainment and Publication, Power, Services, Telecommunication and Textiles.

All 14 indices will track the performance of companies within the BSE 500 that are classified under their respective sectors.

https://et-infographics.indiatimes.com/graphs/16reR/1/" scrolling="no" frameborder="0" height="1102" data-external="1">

The expansion comes at a time when sector-specific benchmarks are gaining relevance for investors seeking targeted exposure to different segments of the equity market. Such indices can serve as reference benchmarks for actively managed investment strategies as well as the underlying indices for passive products such as exchange-traded funds (ETFs) and index funds.

“With this launch BSE Index Services is pleased to offer whole suite of 20 sectoral indices based on the BSE 500 universe. These sectoral indices enhance our offering and provide broad coverage across key sectors of the Indian economy,” said Ashutosh Singh, managing director and chief executive officer of BSE Index Services.

As India's capital markets expand, sector-specific indices are becoming increasingly important for performance measurement, portfolio construction and the development of passive investment products, Singh said.

ALSO READ: Tata Motors PV Q2 Results: Company reports net loss of Rs 5,531 crore; revenue jumps 34% YoY

The indices are also intended to support ETFs, index funds, portfolio management services (PMS) strategies and other investment products seeking focused exposure to India's growth sectors.

BSE Index Services, formerly known as Asia Index Pvt Ltd, is a wholly owned subsidiary of BSE Ltd and is responsible for calculating, publishing and maintaining a range of domestic and global market indices.

With the latest additions, the exchange's index services arm is broadening its sectoral benchmark universe beyond its existing six indices, bringing a wider range of industries within a standardised BSE 500-based framework.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here