Asia Index, a joint venture between S&P Dow Jones Indices and BSE, today announced the launch of Sensex Next 50 index in a bid to measure market movements in a diversified manner.
The index will measure the performance of the subsequent 50 largest index-eligible stocks outside the S&P BSE Sensex 50.
"The S&P BSE Sensex Next 50 index is an extension of the S&P BSE Sensex 50 index. Given the ever increasing demand from institutional and retail investors, we have launched this objective, rule-based and transparent index that is suitable to underlie exchange traded funds (ETFs) or index funds," Asia Index CEO Alka Banerjee said in a statement.
Constituents of index are weighted by float adjusted market capitalisation. The index will go under periodic review, semi-annually in June and December.
The index is calculated in INR and USD for both Price Returns as well as Total Returns versions. The first value date of this index goes back to December 16, 2005.
"We have always endeavoured to provide investors the appropriate set of tools to make the most of the Indian equity market. Aligned to investor appetite of measuring market movements in a diversified manner, we are excited to announce the launch of this global standard Index," BSE Managing Director and CEO Ashishkumar Chauhan said.
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