BSE-S&P Dow Jones split: Index business a laggard in Indian markets

The segment has limited contribution to earnings of parent exchanges

The end of the BSE’s joint venture with global index provider S&P Dow Jones Indices has thrown the spotlight on the index business in India. 

It has been less of a success than the segment’s traction in global markets might have indicated. Large global index providers took in over $2 billion in revenue in the previous year, according to Bloomberg. 

This is a fraction of that in India. Year-on-year growth has been limited and the contribution to exchanges’ earnings is minimal, shows an analysis of financial statements. 

The dominance of active management in India and an inability to monetise data