BSE Subsidiary Asia Index Introduces 5 New Indices

Asia Index, a subsidiary of the Bombay Stock Exchange (BSE), has launched 5 new stock market indices aimed at providing broader market representation. The newly introduced indices are BSE 1000, BSE Next 500, BSE 250 Microcap, BSE Next 250 Microcap, and BSE 1000 Multicap Equal Size Weighted (25%).

Objective and Market Coverage

The indices are to track companies across different market segments, from large-cap to micro-cap. This provides a structured approach for investors and market participants to monitor stock performance across various categories.

According to the Asia Index, these indices will serve as benchmarks and could be used for passive investment strategies, including index funds and ETFs.

Details of the New Indices

• BSE 1000: Represents the 1000 largest and most liquid companies under the BSE AllCap universe.
• BSE Next 500: Consists of 500 companies within BSE 1000 that are not included in BSE 500.
• BSE 250 Microcap: Tracks 250 of the largest and most liquid companies within BSE Next 500.
• BSE Next 250 Microcap: Includes the remaining 250 companies from BSE Next 500 that are not part of BSE 250 Microcap.
• BSE 1000 Multicap Equal Size Weighted (25%): Comprises companies from different size segments – BSE 100 LargeCap, BSE 150 MidCap, BSE 250 SmallCap, and BSE Next 500, each given an equal weight of 25%.

BSE 1000 accounts for over 93% of India’s market capitalisation. 

Commentary from Asia Index

Ashutosh Singh, MD and CEO of Asia Index said “BSE 1000 represents over 93% of India’s overall market capitalisation and therefore will serve as a relevant benchmark for the overall stock market. The index is designed to serve as a comprehensive barometer of India’s growing economy, reflecting the diversity and dynamism of our corporate sector, representing companies that are industry leaders and emerging businesses.”

With the introduction of these indices, investors and analysts now have additional tools to assess market trends and stock performance across different categories.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.