BSE’s index arm just rolled out a new benchmark that follows stocks used in India’s equity derivatives market.
What the BSE All Derivative Stocks Index tracks
The index includes all BSE 500 companies that are eligible for derivative trading. Each stock’s weight is set by a mix of float‑adjusted market capitalisation and a momentum score, with no single stock exceeding a 10% cap.
Key features
- Base value of 1,000, dated 23 June 2014.
- Re‑balanced twice a year, in June and December.
- Designed to reflect the growing depth and liquidity of India’s derivatives market.
How investors can use it
The index can serve as a transparent, rules‑based benchmark for several passive strategies, such as:
- Exchange‑traded funds (ETFs) and index funds.
- Portfolio management services (PMS) and mutual‑fund schemes.
- Any investment portfolio that wants broader exposure to derivative‑eligible stocks.
Why it matters
By covering the whole derivative‑eligible universe, the index gives investors a single, easy‑to‑track measure of market performance, helping them align with the evolving Indian capital markets.
Remember, this is perspective, not a prediction. Do your own research before making investment decisions.