BSE launches futures on S&P BSE SENSEX 50
Mumbai, March 14, 2017 – Asia’s oldest bourse BSE today announced the launch of futures on S&P BSE SENSEX 50. Introduction of futures on S&P BSE SENSEX 50 will be helpful for investors to achieve portfolio diversification. The market participants would be able to take a long-term view on the underlying. Introduction of additional indices will also lead to increased participation in the Index futures market.
Further to this, Index futures contracts will lead to better price discovery and will be useful in hedging and risk management tools. It will also take market towards a multi-product environment.
The S&P BSE SENSEX50 is a transparent, ruled-based index designed to measure the performance of the top 50 largest and liquid stocks in the S&P BSE Large Mid Cap by float-adjusted market capitalization.
The index allows inclusion of DVRs in index subject to DVR qualify minimum liquidity criteria and common equity share class of the same is part of the index. The index is diversified index as it represents each key economic sector identified by BSE’s sector model covering approximately 53.9% of total market capitalization of BSE listed companies as of Oct 30, 2016. It is calculated in price returns as well as total returns version in INR and USD.