BSE Launches Total Market Index, New Benchmark Covers 98% Of AllCap Market Capitalisation
· Free Press Journal
Mumbai: BSE Index Services Pvt. Ltd., a wholly-owned subsidiary of BSE, has launched the BSE Total Market Index (TMI), a new benchmark aimed at providing broad exposure to the Indian stock market.
The new index covers companies representing 98% of the BSE AllCap Index by total market capitalisation, making it one of the broadest market benchmarks in India.
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Wide Market Coverage
According to BSE, the Total Market Index will continue to cover at least 98% of the BSE AllCap universe, while maintaining a minimum of 1,000 constituent stocks.
The exchange said the benchmark has been created to reflect the overall performance of the Indian equity market as it continues to expand.
Index Details
The BSE Total Market Index has been launched with a base value of 1,000, while September 16, 2005, has been chosen as the first value date.
The index will be reviewed and reconstituted twice every year, in June and December, to ensure it continues to represent the broader market.
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Ashutosh Singh, Managing Director and Chief Executive Officer of BSE Index Services Pvt. Ltd., said the new benchmark has been designed to grow alongside India's capital markets.
He said the index is not restricted to a fixed number of companies and will continue expanding as the listed market grows, ensuring wider and more relevant market representation over time.
Useful for Investors
BSE said the new index can be used as a benchmark for a wide range of investment products.
These include exchange-traded funds (ETFs), index funds, portfolio management services (PMS), mutual fund schemes and institutional investment portfolios.
The exchange believes the benchmark will support passive investing by offering investors a broader view of the Indian equity market.
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The launch is part of BSE's efforts to expand its range of market indices.
Earlier this year, the exchange introduced the Derivative Stocks Index, which tracks the performance of derivative-linked stocks within the BSE 500 Index.
Like the new Total Market Index, it is designed to support passive investment products and serve as a benchmark for professional portfolio managers and investment funds.