The index seeks to reflect the evolving depth and liquidity of India’s equity derivatives market by capturing the performance of BSE 500 constituents that are linked to derivative trading. Constituents of the BSE All Derivative Stocks Index are weighted based on a combination of float-adjusted market capitalisation and momentum score, with an individual stock weight capped at 10%.
The index has a base value of 1,000, with June 23, 2014 as the first value date, and will be reconstituted semi-annually in June and December.
Commenting on the launch, Ashutosh Singh, Managing Director and CEO of BSE Index Services Pvt. Ltd., said the new index represents a structural shift in benchmark construction in India. “By dynamically representing the entire derivative-eligible equity universe, the index mirrors the changing depth, liquidity and maturity of India’s capital markets. It provides market participants with a transparent, rules-based benchmark that evolves alongside the derivatives ecosystem,” he said.
The BSE All Derivative Stocks Index can be used for a range of passive investment strategies, including exchange-traded funds (ETFs) and index funds. It may also serve as a benchmark for portfolio management services (PMS), mutual fund schemes and other investment portfolios, enabling investors to access a broader spectrum of market opportunities.
BSE Index Services Pvt Ltd, which was formerly known as Asia Index Pvt Ltd is responsible for calculating, publishing and maintaining a wide range of equity indices. BSE is Asia’s oldest stock exchange and the home of the benchmark Sensex index.
Sensex is celebrating 40 years of its launch.Read more: Sensex at 40 reflects India’s market evolution from manual trades to global integration: Sebi Chairman
India’s heart beat index, which has 30 constituents, today ended at 84,180.96, falling 780.18 or 0.92%.
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