BSE Total Market Index has been launched by BSE Index Services Pvt. Ltd., introducing one of the broadest equity benchmarks in India. The new index is designed to cover 98% of the BSE AllCap Index market capitalisation, offering investors a comprehensive measure of the Indian stock market.
BSE Total Market Index launched with 98% AllCap coverage
According to the exchange, the index will maintain coverage of at least 98 per cent of the BSE AllCap universe, subject to a minimum of 1,000 constituent stocks, making it one of the broadest benchmarks for the Indian equity market.
BSE Total Market Index to be rebalanced twice a year
The BSE Total Market Index has a base value of 1,000, with September 16, 2005, as its first value date. The index will be reconstituted semi-annually in June and December.
Ashutosh Singh, Managing Director and CEO of BSE Index Services Pvt. Ltd., said the index has been designed as a future-ready benchmark that expands in line with the growth of India’s capital markets rather than being restricted to a fixed number of constituents.
“The BSE Total Market Index is designed to grow as India’s capital market grows, ensuring broad and relevant representation of the listed market capitalisation universe while reflecting how the market continues to evolve,” he said.
How the BSE Total Market Index will benefit investors
The exchange said the new benchmark can be used for passive investment products such as exchange-traded funds (ETFs) and index funds, besides serving as a benchmark for portfolio management services (PMS), mutual fund schemes and institutional portfolios.
Earlier in January, BSE Index Services had launched the Derivative Stocks Index, which tracks the performance of derivative-linked constituents of the BSE 500 Index. Similar to the Total Market Index, it is intended to support passive investment strategies through ETFs and index funds, while also serving as a benchmark for PMS strategies, mutual fund schemes and investment portfolios.
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