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BSE-500 Index
Bombay Stock Exchange Limited constructed a new index, christened BSE-500, consisting of 500 scrips w.e.f. August 9, 1999. The changing pattern of the economy and that of the market were kept in mind while constructing this index.
BSE-500 index represents nearly 93% of the total market capitalization on BSE. BSE-500 covers all 20 major industries of the economy. In line with other BSE indices, effective August 16, 2005 calculation methodology was shifted to the free-float methodology.
Index Specification:
Base Year 1,February,1999 Base Index Value 1000 Date of Launch 9,August,1999 Method of calculation Launched on full market capitalization method and effective August 16, 2005, calculation method shifted to free-float market capitalization. Number of scrips 500 Index Constituents Index calculation frequency Real Time Index Calculation and maintenance Index Reach Click here for scrip-wise, sector wise market capitalization, weightage etc. Market capitalization and Turnover Coverage Historical Values for Index, Price Earnings, Price to Book Value ratio and Dividend Yield % Historical Replacements Historical Notices Click here to search historical notices on Index Replacements
BSE-500 & Sectoral Indices
Selection of the Base Year and Base Index Value:
The base date was fixed after a detailed analysis of the relative volatility of BSE-200, the index closest to BSE-500, over the last 8 years. The coefficient of variation of BSE-200 for 1998-99 was one of the lowest in this period. Hence, 1998-99 was chosen as the base year, and within this, February 1, 1999 was selected as the base date for its proximity to the current period. The base value was fixed at 1000 points in order to keep the index comparable with other similar indices.
BSE-500 index - Scrip Selection Criteria:
1. Equities of companies listed on Bombay Stock Exchange Ltd. (excluding companies classified in Z group, listed mutual funds, scrips suspended on the last day of the month prior to review date, scrips objected by the Surveillance department of the Exchange and those that are traded under permitted category) shall be considered eligible
2. The scrip should have been traded on 75% of the trading days in the last three months.
3. Rank all companies on average full market capitalisation, average free-float market capitalisation and average turnover for preceding 3 months
4. Calculate final rank giving weightage of 75% to rank on market cap. (full & free-float separately) and 25% to rank on turnover
5. Calculate combined final rank by taking summation of final rank based on full & free-float market capitalization
6. Exclude all companies with final rank beyond 550 based on full & free-float market capitalization
7. Include all companies with (a) FF final rank and Full final rank within 500; and (b) superior combined final rank to the extent of total exclusions
8. In case of any short-fall for inclusion, select companies with (a) FF final rank and combined final rank within 500; and (b) superior combined final rank
9. In case of further short-fall for inclusion, select companies with (a) Full final rank and Combined final rank within 500; and (b) superior combined final rank
10. Any further short-fall shall be filled-up by including companies based on combined final rank
Note:
If an index constituent is traded under the 'Ex-Entitlement' basis it will be excluded from all BSE Indices. This is done because during this period BSE is unable to ascertain the valuation of the constituent and valuation of a constituent is required for Index calculation.
The company shall be included in the index after one calendar month of re-listing / from ex-entitlement date, subject to fulfillment of all Index eligibility criteria's.
