Asia Index Private Limited to launch S&P BSE AllCap Index Family
New suite of Indian benchmark indices; total 16 equity indices to be launched
Mumbai, March 10, 2015 – In response to the market need for a broad benchmark index that will help measure the performance of the Indian equity market, Asia Index Private Limited, a joint-venture between S&P Dow Jones Indices and BSE, will launch the S&P BSE AllCap Index Family in the second quarter of 2015. The S&P BSE AllCap Index will further be 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 S&P BSE All Cap 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 will be useful for broad market measurement, while the five size-based indices and ten sector indices will offer investors a tool to analyse market movements across size or sectors. The family of indices is designed to be comprehensive, modular and rules based.
“The Indian equity market has been one of the top performers among emerging economies. Hence, there is a strong need to effectively measure its performance across sectors and market segments that can truly represent its breadth and depth,” says Alka Banerjee, CEO, Asia Index Private Limited.
The size-based indices’ stock selection conforms to S&P Dow Jones Indices’ global methodology of 70%/15%/15% composition in large-, mid- and small-cap; while the sector indices are as per the 10 broad economic sectors as identified by BSE. 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.
“We are excited to launch the entire suite of indices under the S&P BSE AllCap Index. 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,” says Ashish Chauhan, MD & CEO, BSE.
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.
For more information, please visit: www.asiaindex.co.in
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.
For more information:
Yatin Padia – +91 98330 10098 / Ketan P. Mehta – +91 98209 42920
S&P Dow Jones Indices
David R. Guarino
(+1) 212 438 1471