Asia Index Private Limited launches S&P BSE AllCap, S&P BSE SENSEX Leverage and Inverse indices
AIPL expands its coverage of Indian equity market with launch of 19 indices--suite of 16 benchmark indices along with 3 strategy indices
Mumbai, April 16, 2015 – In response to the market need for broader and innovative indices to keep up with investors’ growing appetite, Asia Index Private Limited (AIPL), a joint-venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index, and its suite of 15 indices. Besides this, AIPL has also launched three strategy indices for investors dealing in sophisticated investment products.
The newly launched S&P BSE AllCap index is a broad index covering more than 95% of the total market capitalisation and comprises more than 700 stocks that are listed on the BSE. The S&P BSE AllCap index is divided into five size-based indices including LargeCap, MidCap and SmallCap using total market capitalisation and ten sector-based sub-indices. Certain existing indices will be replaced by the new indices.
The family of indices launched conforms to the global methodology of 70%/15%/15% composition in large-, mid- and small-cap. All 16 indices will be calculated in Indian Rupees (INR) and also in United States Dollars (USD), helping foreign investors to measure market performance after incorporating exchange rate (INR/USD) movements.
In addition to the S&P BSE AllCap index, the following are the five size indices to be launched:
• S&P BSE LargeCap
• S&P BSE MidCap
• S&P BSE Large MidCap
• S&P BSE SmallCap
• S&P BSE MidSmallCap
The ten sector indices to be launched are:
• S&P BSE Basic Materials
• S&P BSE Consumer Discretionary Goods & Services
• S&P BSE Energy
• S&P BSE Finance
• S&P BSE Fast Moving Consumer Goods
• S&P BSE Healthcare
• S&P BSE Industrials
• S&P BSE Information Technology
• S&P BSE Telecom
• S&P BSE Utilities
The existing S&P BSE MID CAP, S&P BSE SMALL CAP, S&P BSE HEALTHCARE, S&P BSE IT and S&P BSE FMCG indices will be replaced with new indices, namely S&P BSE MidCap, S&P BSE SmallCap, S&P BSE Healthcare, S&P BSE Information Technology and S&P BSE Fast Moving Consumer Goods, respectively. The new indices will provide a better representation of these industries with respect to size and sector.
Apart from the S&P BSE AllCap indices, 3 strategy indices viz. S&P BSE Sensex 1x Inverse Daily and S&P BSE Sensex 2x Inverse Daily, S&P BSE Sensex 2x Leverage Daily, were also launched.
“The Indian equity market has been one of the most important destinations among global investors. Hence there is an opportunity to address their diverse needs across different classes of equities. The latest launch showcases our constant endeavor to create indices which are transparent, sophisticated and in tune with international standards for investors across geographies,” says Alka Banerjee, CEO, Asia Index Private Limited.
The S&P BSE 1x Inverse Daily helps to measure inverse returns of S&P BSE SENSEX TR plus a prorated portion of interest, and the S&P BSE 2x Inverse Daily helps to measure two times inverse returns of S&P BSE SENSEX TR plus a prorated portion of interest. These two indices are designed for investors who are seeking a short position on S&P BSE SENSEX. S&P BSE SENSEX 2x Leverage Daily helps to measure two times returns of S&P BSE SENSEX TR (including dividends) minus a prorated portion of interest, to generate excess index exposure.
These indices use S&P BSE SENSEX as underlying index, and are designed to reflect the exposure in directional manner by employing leverage and short (inverse) positions of the underlying index. They are designed to provide a representative and transparent measure of these strategies in India.
“Today investors in India, and globally alike, want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices. The latest launches will provide investors the much-needed set of tools to make the most of the Indian equity market,” adds Ashish Chauhan, MD & CEO, BSE.
ASIA INDEX PRIVATE LIMITED
Asia Index Pvt. Ltd is a 50-50 partnership between S&P Dow Jones Indices LLC, the world’s largest provider of financial market indices, and BSE Ltd, Asia’s oldest stock exchange and home to the iconic SENSEX index - a leading indicator of Indian equity market performance. Asia Index Pvt. Ltd, which combines the benchmarks, market intelligence, and insights of both parent companies, each established more than 115 years ago, aims to provide a full array of indices enabling global and domestic investors to participate in South Asia’s vibrant economies. The Company is best known for calculating, publishing, and maintaining a diverse family of Asian indices under the umbrella brand, S&P BSE Indices.
About BSE Ltd
BSE Ltd (formerly Bombay Stock Exchange Ltd.), established in 1875, is Asia’s first and fastest Stock Exchange with the response time of 200 microseconds and one of India’s leading exchange groups and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualized entity, with a broad shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing. BSE also has a dedicated platform for trading in equities of small-and-medium enterprises (SME). BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world’s largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC, a subsidiary of McGraw Hill Financial. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed to S&P Dow Jones Indices LLC.
It is not possible to invest directly in an index. Asia Index Pvt. Ltd (“AIPL”), S&P Dow Jones Indices LLC, BSE, Dow Jones and their respective affiliates do not sponsor, endorse, sell, or promote any investment fund or product that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where AIPL, S&P Dow Jones Indices and/or BSE do not have the necessary licenses. AIPL receives compensation in connection with licensing its indices to third parties.
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