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Come April, and BSE will launch the S&P BSE AllCap Index family, which will further be divided into five size-based indices, and ten other sector-based equity indices. Some of these indices will replace the existing indices, the release stated.
The S&P BSE AllCap Index will comprise the S&P BSE LargeCap, S&P BSE MidCap, S&P BSE LargeMidCap, S&P BSE SmallCap and S&P BSE MidSmallCap. These indices are expected to replace the existing S&P BSE 100, S&P BSE 200, S&P BSE 500, S&P BSE MidCap and S&P BSE SmallCap indices.
"We are excited to launch the entire suite of indices under the S&P BSE AllCap Index. Investors in India, and globally alike, want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices," says Ashish Chauhan, MD & CEO, BSE.
A total of 700 stocks will be covered by the AllCap index and represent 95 per cent of the total market capitalisation. The existing family of indices consist of the top 500 companies listed on the BSE. The size-based indices' stock selection conforms to S&P Dow Jones Indices' global methodology of 70 per cent-15 per cent-15 per cent composition in large-, mid- and small-cap; while the sector indices are as per the 10 broad economic sectors as identified by BSE, the news release said.
"The Indian equity market has been one of the top performers among emerging economies. Hence, there is a strong need to effectively measure its performance across sectors and market segments that can truly represent its breadth and depth," says Alka Banerjee, CEO, Asia Index Private Limited.
Asia Index Private Ltd is the index provider to BSE and is in a 50-50 partnership with the exchange.
Further, these indices will be calculated both INR and USD terms to aid foreign investors in measuring market performance after incorporating exchange-rate movements.
S&P BSE Basic Materials, S&P BSE Consumer Discretionary Goods & Services, S&P BSE Energy, S&P BSE Finance, S&P BSE Industrials, S&P BSE Telecom and S&P BSE Utilities are some of the new indices to be launched in the next quarter. The existing S&P BSE HEALTHCARE, S&P BSE IT and S&P BSE FMCG indices will be replaced by S&P BSE Healthcare, S&P BSE Information Technology and S&P BSE Fast Moving Consumer Goods, respectively.
"The new indices will provide a better representation of these industries with respect to size and sector," said the BSE Statement.
