Asia Index unveils BSE 1000, 4 other indices to capture growth potential of emerging cos

Asia Index Private, a subsidiary of BSE, has unveiled five new indices as part of its broad market family, offering market participants a unique opportunity to tap into the growth potential of India’s next generation of emerging companies.

These indices are designed to capture the performance of a diverse range of companies, from large cap to micro-cap, providing a comprehensive coverage of India’s dynamic equity market, according to a press release.

According to the release, BSE 1000 index will measure the performance of 1000 of the largest and most liquid Indian companies within BSE AllCap. BSE NEXT 500 will measure the performance of the 500 companies within BSE 1000 that are not a part of BSE 500

The next index is BSE 250 MICROCAP which will measure the performance of 250 of the largest and most liquid companies within BSE Next 500 whereas BSE Next 250 MICROCAP will measure the performance of the 250 companies within BSE Next 500 that are not a part of BSE 250 MicroCap.

The fifth index, BSE 1000 MULTICAP EQUAL SIZE WEIGHTED (25%), will comprise the constituents comprising of BSE 100 LargeCap TMC, BSE 150 MidCap, BSE 250 SmallCap and BSE Next 500. Each of the above size segments is equally weighted at 25% and the constituents within the size segments are weighted based on free float market cap

“BSE 1000 represents over 93% of India’s overall market capitalization and therefore will serve as a relevant benchmark for the overall stock market. The index is designed to serve as a comprehensive barometer of India’s growing economy, reflecting the diversity and dynamism of our corporate sector, representing companies that are industry leaders and emerging businesses,” said Ashutosh Singh, MD and CEO of Asia Index Private. “As market participation expands, liquidity improves, and investor confidence strengthens on the back of progressive and investor oriented regulatory changes, the indices will offer an opportunity to market participants to follow the progress of India’s stock market overall with a special lens on the emerging companies. Historical trends and reclassification data consistently demonstrate that many of India’s established large caps and mid-caps once started out in the Next 500 grouping, reinforcing the opportunity within this segment,” he further added.These indices will enable market participants to identify and capitalize on the next wave of high-performing companies. They also serve as valuable tools for passive investment strategies, such as ETFs and index funds, as well as for benchmarking portfolio performance.