Asia Index Private (AIPL), a joint venture between S&P Dow Jones (S&P DJ) and the Bombay Stock Exchange (BSE), has launched the SEP BSE AllCap Index series which includes five size indices and 10 sector indices in response to increasing capital market activity including demand for structured products and international benchmarks.
“The Indian market has seen increasing inflow of funds through various routes including structured products,” said a BSE spokesperson. “There was always a need in India’s capital market for a relative comprehensive benchmark with clear size and sector segments which follow international standards and are modular in nature.”
The S&P BSE AllCap Index is a broad index covering more than 95% of the total market capitalisation and comprising more than 700 stocks that are listed on the BSE. It will be divided into five size-based indices including LargeCap, MidCap and SmallCap using total market capitalisation and ten sector-based sub-indices. Certain existing BSE indices will be replaced by the new indices.
With the S&P BSE AllCap, said the spokesperson, “we have all of them.”
“[The series has been] designed to help investors to dissect market performance in clear size and sector buckets,” he said. “The launch of the S&P BSE AllCap brings India’s capital market to international standards, making it directly comparable with other markets.”
AIPL has also launched three strategy indices – the S&P BSE Sensex 1x Inverse Daily, S&P BSE Sensex 2x Inverse Daily and S&P BSE Sensex 2x Leverage Daily.
“We are exploring various concepts including smart beta and will schedule launches based on the demand,” said the spokesperson.
The launch follows the introduction of the NSE Quality 30 index last month. The index created by India Index Services & Products (IISL), the indexing arm of the National Stock Exchange of India (NSE), was brought to market with structured products as a target for licensing.
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