On Monday, Asia Index, a subsidiary of BSE, introduced five new indexes aimed at helping market participants leverage the growth potential of emerging companies.
According to Asia Index, these new indexes are designed to reflect the performance and growth opportunities of companies ranging from large-cap to microcap segments.
The newly launched indexes are named:
BSE 1000
BSE NEXT 500
BSE 250 MICROCAP
BSE Next 250 MICROCAP
BSE 1000 MULTICAP
Opportunities for Growth and Investment
Ashutosh Singh, Managing Director and CEO of Asia Index, highlighted the significance of these new indexes.
He explained that the BSE 1000, covering over 93% of India’s total market capitalization, will serve as a benchmark for the overall stock market.
As market participation increases and regulatory measures boost investor confidence, these indexes will create opportunities to capitalize on the growth of emerging companies.
Singh also pointed out that historical trends show many of today’s established mid-cap and large-cap companies started in the Next 500 grouping, underlining the potential of this segment.
The new indexes offer versatility for investors and fund managers. They can be used for passive investment strategies such as ETFs
and index funds, evaluating the performance of new companies across various sectors, and benchmarking mutual funds, PMS strategies, and portfolio performance.
These tools will expand market opportunities, enabling investors to refine and strengthen their strategies.
Overview of the New Indexes
BSE 1000: Tracks the performance of the 1000 largest and most liquid Indian companies in the BSE AllCap.
BSE NEXT 500: Focuses on 500 companies in the BSE 1000 that are not part of the BSE 500.
BSE 250 MICROCAP: Captures the performance of the 250 largest and most liquid companies within the BSE Next 500.
BSE Next 250 MICROCAP: Measures the performance of 250 companies in the BSE Next 500 that are not part of the BSE 250 Microcap.
BSE 1000 Multicap Equal Size Weighted (25%): Combines constituents from the BSE 100 LargeCap TMC, BSE 150 MidCap, BSE 250 SmallCap, and BSE Next 500.
Each segment is equally weighted at 25%, with individual constituents weighted based on free-float market capitalization.
With these additions, BSE aims to provide a comprehensive framework for market participants to explore emerging companies’ growth potential while fostering greater investment confidence.
