Mumbai: To put in place an overall gauge for the Indian stock market, a new S&P BSE Allcap Index was launched today which will cover over 700 listed stocks representing over 95 per cent of market capitalisation. Asia Index Private Limited, a joint-venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index and 18 other indices, BSE said in a statement.
The move is in response to the market need for broader and innovative indices to keep up with investors’ growing appetite. The new index will further be divided into five size- based indices including LargeCap, MidCap and SmallCap using total market capitalisation, and ten sector-based sub-indices. Certain existing indices will be replaced by the new ones.
The ten sector-based sub-indices are basic materials, consumer discretionary goods and services, energy, finance, FMCG, healthcare, industrials, IT, telecom and utilities. The new indices are expected to provide better representation of these industries with respect to size and sector.
Besides, three new strategy indices–S&P BSE Sensex 1x Inverse Daily and S&P BSE Sensex 2x Inverse Daily, S&P BSE Sensex 2x Leverage Daily, were launched. The existing S&P BSE indices for Midcap, Small cap, healthcare, IT and FMCG would be replaced with new indices, which would provide a better representation of these industries with respect to size and sector.
“Today investors in India, and globally alike, want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices. The latest launches will provide investors the much-needed set of tools to make the most of the Indian equity market,” BSE MD and CEO Ashish Chauhan said.