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

The segment has limited contribution to earnings of parent exchanges

Large global index providers took in over $2 billion in revenue in the previous year, according to data from Bloomberg (Photo: Reuters)
Large global index providers took in over $2 billion in revenue in the previous year, according to data from Bloomberg (Photo: Reuters)

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 ...