What is the BSE All Derivative Stocks Index?

It's a new index launched by BSE Index Services that tracks the performance of derivative-eligible stocks from the BSE 500.

How are stocks weighted in the new BSE index?

Stocks are weighted using a combination of float-adjusted market capitalization and momentum score, with a 10% cap per stock.

Who can use the BSE All Derivative Stocks Index?

Market participants can use it for passive investment strategies like ETFs and index funds, and as a benchmark for portfolio services.

Home / Business and Economy / BSE Launches New Index for Derivative Stocks

BSE Launches New Index for Derivative Stocks

9 Jan

•

Summary

New index tracks derivative-eligible stocks from BSE 500.
Index uses market cap and momentum for weighting.
It serves as a benchmark for investment products.

BSE Launches New Index for Derivative Stocks

BSE Index Services has introduced the 'BSE All Derivative Stocks Index,' a new financial benchmark designed to track the performance of stocks eligible for derivative trading within the broader BSE 500. This launch signifies a notable development in India's equity derivatives market, aiming to capture the evolving depth and liquidity of this sector.

The index employs a unique weighting methodology, combining float-adjusted market capitalization with a momentum score, ensuring no single stock exceeds a 10% weight. With a base value of 1,000 and an initial value date of June 23, 2014, the index will undergo semi-annual reconstitutions in June and December.

This new benchmark is poised to facilitate various investment products, including exchange-traded funds, index funds, and portfolio management services. It offers market participants a transparent, rules-based tool that adapts to the dynamic nature of India's capital markets and its burgeoning derivatives ecosystem.