There is important news for stock market investors and traders. BSE Index Services has launched a new index called the BSE All Derivative Stocks Index. This index is designed to track the performance of equity derivative stocks in India.
The index includes stocks from the BSE 500 index that are actively traded in the derivatives segment. It reflects the overall movement of derivative-eligible stocks in the Indian market.
Purpose and Benefits of the New Index
Investors can use this new index to create passive investment products such as exchange-traded funds (ETFs) and index funds. It can also serve as a benchmark for portfolio management services (PMS), fund portfolios, and FF schemes.
Ashutosh Singh, Managing Director and CEO of BSE Index Services Private Limited, said that this index marks a major change in benchmark design.
According to him, the index dynamically represents the entire derivatives-eligible equity universe and highlights the depth, liquidity, and growth of India’s capital markets.
How Are Stocks Selected for the Index?
The stocks are selected from the BSE 500 universe based on their eligibility for derivatives trading. Their weight in the index is decided using a mix of float-adjusted market capitalization and momentum scoring.
To maintain diversification, the maximum weight of any single stock is capped at 10%. This prevents over-concentration in one company. The base value of the index is set at 1,000.
Index Reconstitution Details
The first value date of the index is June 23, 2014. The index is reconstituted every six months, in June and December, to ensure it stays updated with market changes.
Market Opportunities for Investors
With the launch of this new index, investors can explore broader market opportunities and improve their investment strategies by gaining exposure to derivative-eligible stocks across sectors.
BSE’s Partnership with the Post Office
In December 2025, BSE signed a Memorandum of Understanding (MoU) with the Post Office. Under this agreement, mutual fund products will be distributed through the wide network of India Post.
This three-year agreement allows selected postal employees and agents to be trained and certified as mutual fund distributors. They will provide investor services using BSE’s STAR Mutual Fund platform.
Market Applications and Investment Uses
The BSE All Derivative Stocks Index can be used in several ways:
Passive investment options like ETFs and index funds
Benchmarking for PMS and mutual fund schemes
Portfolio building for broader exposure to derivative-traded stocks
BSE Share Performance and Financial Strength
BSE shares have performed strongly in the market. The stock has gained 4% in one month and over 8% in six months. In the past year, it has delivered a return of 57% to investors.
The stock’s 52-week high is ₹3,030 and the 52-week low is ₹1,227.33. BSE’s market capitalization stands at ₹1.09 lakh crore.
BSE is a virtually debt-free company and has achieved a profit growth CAGR of 65.4% over the last five years. It maintains a healthy dividend payout ratio of 41.1%.
As of September 2025, foreign institutional investors (FIIs) hold 16.25%, while domestic institutional investors (DIIs) hold 19.91% of the company’s shares.
