S&P BSE Financial Services Live Chart
O 0
H 0
L 0
S&P BSE Financial Services Performance
Days Range
Previous Close10,633.46
Open10,609.49
52W Range9,101.76 - 10,959.59
P/E Ratio16.8
S&P BSE Financial Services Companies
|
Company
 |
LTP
|
Change
|
Day Range
|
|
|---|---|---|---|---|
|
360 ONE WAM Ltd |
₹797.50 |
0.00 (0.00%) |
₹775.30 - ₹806.80 |
|
|
5Paisa Capital Ltd |
₹528.00 |
0.00 (0.00%) |
₹524.10 - ₹537.90 |
|
|
AAVAS Financiers Ltd |
₹1,572.85 |
0.00 (0.00%) |
₹1,558.95 - ₹1,585.00 |
|
|
Abans Holdings Ltd |
₹416.10 |
0.00 (0.00%) |
₹397.95 - ₹429.00 |
|
|
Aditya Birla Sun Life AMC Ltd |
₹535.75 |
0.00 (0.00%) |
₹527.70 - ₹539.40 |
|
|
Aditya Birla Capital Ltd |
₹225.80 |
0.00 (0.00%) |
₹223.75 - ₹228.95 |
|
|
AGS Transact Technologies Ltd |
₹74.20 |
0.00 (0.00%) |
₹71.65 - ₹74.48 |
|
|
Anand Rathi Wealth Ltd |
₹4,165.00 |
0.00 (0.00%) |
₹4,100.45 - ₹4,199.40 |
|
|
Angel One Ltd |
₹2,493.90 |
0.00 (0.00%) |
₹2,486.05 - ₹2,535.95 |
|
|
Aptus Value Housing Finance India Ltd |
₹304.75 |
0.00 (0.00%) |
₹301.55 - ₹308.35 |
|
|
Arihant Capital Markets Ltd |
₹68.37 |
0.00 (0.00%) |
₹66.55 - ₹69.45 |
|
|
Arman Financial Services Ltd |
₹2,053.60 |
0.00 (0.00%) |
₹2,025.05 - ₹2,103.90 |
|
|
AU Small Finance Bank Ltd |
₹648.00 |
0.00 (0.00%) |
₹632.05 - ₹652.40 |
|
|
Authum Investment & Infrastructure Ltd |
₹813.80 |
0.00 (0.00%) |
₹801.25 - ₹844.05 |
|
|
Axis Bank Ltd |
₹1,159.70 |
0.00 (0.00%) |
₹1,156.25 - ₹1,184.55 |
|
|
Bajaj Finance Ltd |
₹6,810.20 |
0.00 (0.00%) |
₹6,787.05 - ₹6,904.20 |
|
|
Bajaj Finserv Ltd |
₹1,569.80 |
0.00 (0.00%) |
₹1,565.65 - ₹1,600.60 |
|
|
Bajaj Holdings & Investment Ltd |
₹7,803.90 |
0.00 (0.00%) |
₹7,720.20 - ₹7,850.00 |
|
|
Balmer Lawrie Investment Ltd |
₹886.40 |
0.00 (0.00%) |
₹851.60 - ₹890.95 |
|
|
Bandhan Bank Ltd |
₹191.65 |
0.00 (0.00%) |
₹188.45 - ₹194.15 |
|
|
Bank of Baroda |
₹263.40 |
0.00 (0.00%) |
₹262.00 - ₹266.15 |
|
|
Bank of India |
₹129.55 |
0.00 (0.00%) |
₹128.40 - ₹130.95 |
|
|
Bank of Maharashtra |
₹68.98 |
0.00 (0.00%) |
₹67.42 - ₹69.70 |
|
|
BF Investment Ltd |
₹548.80 |
0.00 (0.00%) |
₹547.50 - ₹557.40 |
|
|
Computer Age Management Services Ltd |
₹3,445.35 |
0.00 (0.00%) |
₹3,336.20 - ₹3,457.40 |
|
|
Can Fin Homes Ltd |
₹722.75 |
0.00 (0.00%) |
₹720.15 - ₹741.60 |
|
|
Canara Bank |
₹116.55 |
0.00 (0.00%) |
₹115.50 - ₹118.35 |
|
|
Capri Global Capital Ltd |
₹212.00 |
0.00 (0.00%) |
₹209.60 - ₹215.30 |
|
|
CARE Ratings Ltd |
₹1,058.75 |
0.00 (0.00%) |
₹1,048.35 - ₹1,062.00 |
|
|
Central Bank of India |
₹64.69 |
0.00 (0.00%) |
₹64.09 - ₹65.83 |
|
|
Centrum Capital Ltd |
₹39.44 |
0.00 (0.00%) |
₹39.29 - ₹40.75 |
|
|
Choice International Ltd |
₹344.45 |
0.00 (0.00%) |
₹336.45 - ₹349.65 |
|
|
Cholamandalam Financial Holdings Ltd |
₹1,131.60 |
0.00 (0.00%) |
₹1,102.20 - ₹1,138.05 |
|
|
Cholamandalam Investment & Finance Company Ltd |
₹1,241.45 |
0.00 (0.00%) |
₹1,236.00 - ₹1,269.00 |
|
|
City Union Bank Ltd |
₹142.25 |
0.00 (0.00%) |
₹142.00 - ₹143.80 |
|
|
CreditAccess Grameen Ltd |
₹1,323.35 |
0.00 (0.00%) |
₹1,315.25 - ₹1,342.30 |
|
|
CRISIL Ltd |
₹4,188.35 |
0.00 (0.00%) |
₹4,155.60 - ₹4,220.60 |
|
|
CSB Bank Ltd |
₹337.55 |
0.00 (0.00%) |
₹332.00 - ₹340.60 |
|
|
DCB Bank Ltd |
₹128.40 |
0.00 (0.00%) |
₹128.00 - ₹129.55 |
|
|
Dhani Services Ltd |
₹45.94 |
0.00 (0.00%) |
₹45.75 - ₹47.23 |
|
|
Dolat Algotech Ltd |
₹143.10 |
0.00 (0.00%) |
₹127.95 - ₹145.00 |
|
|
Edelweiss Financial Services Ltd |
₹77.45 |
0.00 (0.00%) |
₹77.00 - ₹79.66 |
|
|
Equitas Small Finance Bank Ltd |
₹94.72 |
0.00 (0.00%) |
₹94.27 - ₹95.18 |
|
|
ESAF Small Finance Bank Ltd |
₹54.02 |
0.00 (0.00%) |
₹53.60 - ₹54.77 |
|
|
Fedbank Financial Services Ltd |
₹121.25 |
0.00 (0.00%) |
₹118.20 - ₹122.00 |
|
|
Federal Bank Ltd |
₹159.70 |
0.00 (0.00%) |
₹158.80 - ₹160.85 |
|
|
Fino Payments Bank Ltd |
₹275.25 |
0.00 (0.00%) |
₹270.00 - ₹277.85 |
|
|
Five-Star Business Finance Ltd |
₹714.10 |
0.00 (0.00%) |
₹693.00 - ₹716.55 |
|
|
Fusion Microfin. |
₹456.65 |
0.00 (0.00%) |
₹452.25 - ₹458.90 |
|
|
General Insurance Corporation of India |
₹355.00 |
0.00 (0.00%) |
₹349.60 - ₹368.25 |
|
|
Geojit Financial Services Ltd |
₹99.81 |
0.00 (0.00%) |
₹97.51 - ₹101.68 |
|
|
GFL Ltd |
₹72.24 |
0.00 (0.00%) |
₹71.90 - ₹74.40 |
|
|
GIC Housing Finance Ltd |
₹211.70 |
0.00 (0.00%) |
₹210.10 - ₹216.75 |
|
|
Housing & Urban Development Corporation Ltd |
₹262.45 |
0.00 (0.00%) |
₹246.00 - ₹269.65 |
|
|
HDFC Asset Management Company Ltd |
₹3,892.25 |
0.00 (0.00%) |
₹3,881.30 - ₹4,003.50 |
|
|
HDFC Bank Ltd |
₹1,507.85 |
0.00 (0.00%) |
₹1,501.70 - ₹1,523.85 |
|
|
HDFC Life Insurance Company Ltd |
₹561.85 |
0.00 (0.00%) |
₹561.00 - ₹579.45 |
|
|
Home First Finance Company India Ltd |
₹815.35 |
0.00 (0.00%) |
₹806.00 - ₹819.15 |
|
|
IDFC Ltd |
₹114.70 |
0.00 (0.00%) |
₹114.40 - ₹115.85 |
|
|
Indian Overseas Bank |
₹69.85 |
0.00 (0.00%) |
₹69.51 - ₹71.58 |
|
|
Indian Railway Finance Corporation Ltd |
₹180.25 |
0.00 (0.00%) |
₹175.35 - ₹181.80 |
|
|
ICICI Bank Ltd |
₹1,102.25 |
0.00 (0.00%) |
₹1,098.70 - ₹1,123.35 |
|
|
ICICI Lombard General Insurance Company Ltd |
₹1,596.60 |
0.00 (0.00%) |
₹1,590.00 - ₹1,638.80 |
|
|
ICICI Prudential Life Insurance Company Ltd |
₹556.70 |
0.00 (0.00%) |
₹553.75 - ₹580.00 |
|
|
ICICI Securities Ltd |
₹710.05 |
0.00 (0.00%) |
₹708.25 - ₹723.05 |
|
|
ICRA Ltd |
₹5,291.95 |
0.00 (0.00%) |
₹5,286.05 - ₹5,370.55 |
|
|
IDBI Bank Ltd |
₹85.88 |
0.00 (0.00%) |
₹85.23 - ₹86.70 |
|
|
IDFC First Bank Ltd |
₹77.13 |
0.00 (0.00%) |
₹77.00 - ₹78.50 |
|
|
IFCI Ltd |
₹58.99 |
0.00 (0.00%) |
₹56.05 - ₹60.40 |
|
|
IIFL Finance Ltd |
₹411.20 |
0.00 (0.00%) |
₹399.05 - ₹414.40 |
|
|
IIFL Securities |
₹193.60 |
0.00 (0.00%) |
₹190.00 - ₹196.45 |
|
|
India Shelter Finance Corporation Ltd |
₹582.85 |
0.00 (0.00%) |
₹576.60 - ₹588.00 |
|
|
Indiabulls Hous. |
₹163.90 |
0.00 (0.00%) |
₹161.15 - ₹165.60 |
|
|
Indian Bank |
₹576.40 |
0.00 (0.00%) |
₹559.10 - ₹583.30 |
|
|
Indian Energy Exchange Ltd |
₹156.70 |
0.00 (0.00%) |
₹154.60 - ₹158.20 |
|
|
Indian Renewable Energy Development Agency Ltd |
₹185.25 |
0.00 (0.00%) |
₹178.55 - ₹186.25 |
|
|
IndusInd Bank Ltd |
₹1,460.00 |
0.00 (0.00%) |
₹1,439.55 - ₹1,471.15 |
|
|
Infibeam Avenues Ltd |
₹30.63 |
0.00 (0.00%) |
₹30.43 - ₹31.18 |
|
|
Jammu and Kashmir Bank Ltd |
₹128.30 |
0.00 (0.00%) |
₹127.55 - ₹129.95 |
|
|
Jio Financial Services Ltd |
₹349.40 |
0.00 (0.00%) |
₹348.30 - ₹356.00 |
|
|
JM Financial Ltd |
₹81.31 |
0.00 (0.00%) |
₹80.39 - ₹82.40 |
|
|
JSW Holdings Ltd |
₹6,571.00 |
0.00 (0.00%) |
₹6,523.70 - ₹6,611.15 |
|
|
Kalyani Investment Company Ltd |
₹4,374.25 |
0.00 (0.00%) |
₹4,362.00 - ₹4,431.95 |
|
|
Kama Holdings Ltd |
₹2,465.90 |
0.00 (0.00%) |
₹2,465.00 - ₹2,494.95 |
|
|
Karnataka Bank Ltd |
₹213.70 |
0.00 (0.00%) |
₹212.75 - ₹216.90 |
|
|
KFin Technologies Ltd |
₹744.05 |
0.00 (0.00%) |
₹610.05 - ₹774.95 |
|
|
Kotak Mahindra Bank Ltd |
₹1,688.30 |
0.00 (0.00%) |
₹1,682.05 - ₹1,710.45 |
|
|
L&T Finance Ltd |
₹157.55 |
0.00 (0.00%) |
₹155.65 - ₹159.00 |
|
|
LIC Housing Finance Ltd |
₹646.95 |
0.00 (0.00%) |
₹640.05 - ₹653.85 |
|
|
Life Insurance Corporation of India |
₹998.10 |
0.00 (0.00%) |
₹992.95 - ₹1,024.00 |
|
|
Mahindra & Mahindra Financial Services Ltd |
₹268.15 |
0.00 (0.00%) |
₹267.25 - ₹270.55 |
|
|
Maharashtra Scooters Ltd |
₹7,724.15 |
0.00 (0.00%) |
₹7,573.00 - ₹7,797.25 |
|
|
Manappuram Finance Ltd |
₹171.90 |
0.00 (0.00%) |
₹170.45 - ₹175.20 |
|
|
MAS Financial Services Ltd |
₹285.90 |
0.00 (0.00%) |
₹280.05 - ₹287.00 |
|
|
Max Financial Services Ltd |
₹967.10 |
0.00 (0.00%) |
₹963.65 - ₹982.90 |
|
|
Monarch Networth Capital Ltd |
₹526.70 |
0.00 (0.00%) |
₹520.85 - ₹530.30 |
|
|
Motilal Oswal Financial Services Ltd |
₹2,279.75 |
0.00 (0.00%) |
₹2,215.00 - ₹2,285.95 |
|
|
Multi Commodity Exchange of India Ltd |
₹3,752.25 |
0.00 (0.00%) |
₹3,711.20 - ₹3,809.55 |
|
|
Muthoot Finance Ltd |
₹1,739.15 |
0.00 (0.00%) |
₹1,727.15 - ₹1,754.95 |
|
|
Muthoot Microfin Ltd |
₹219.30 |
0.00 (0.00%) |
₹217.90 - ₹220.45 |
|
|
Nalwa Sons Investments Ltd |
₹3,453.50 |
0.00 (0.00%) |
₹3,404.00 - ₹3,464.30 |
|
|
New India Assurance Company Ltd |
₹234.40 |
0.00 (0.00%) |
₹228.90 - ₹236.70 |
|
|
Nippon Life India Asset Management Ltd |
₹610.65 |
0.00 (0.00%) |
₹600.00 - ₹616.10 |
|
|
Nuvama Wealth Management Ltd |
₹5,073.60 |
0.00 (0.00%) |
₹5,033.65 - ₹5,125.00 |
|
|
One 97 Communications Ltd |
₹359.55 |
0.00 (0.00%) |
₹359.55 - ₹359.55 |
|
|
Oswal Green Tech Ltd |
₹31.65 |
0.00 (0.00%) |
₹31.50 - ₹32.50 |
|
|
Paisalo Digital Ltd |
₹63.90 |
0.00 (0.00%) |
₹63.13 - ₹64.83 |
|
|
PB Fintech Ltd |
₹1,180.40 |
0.00 (0.00%) |
₹1,161.40 - ₹1,195.05 |
|
|
Pilani Investment & Industries Corporation Ltd |
₹3,800.65 |
0.00 (0.00%) |
₹3,738.25 - ₹3,850.00 |
|
|
Piramal Enterprises Ltd |
₹830.10 |
0.00 (0.00%) |
₹814.00 - ₹837.70 |
|
|
PNB Gilts Ltd |
₹103.85 |
0.00 (0.00%) |
₹103.40 - ₹105.20 |
|
|
PNB Housing Finance Ltd |
₹735.85 |
0.00 (0.00%) |
₹724.55 - ₹750.70 |
|
|
Poonawalla Fincorp Ltd |
₹449.45 |
0.00 (0.00%) |
₹440.75 - ₹450.75 |
|
|
Power Finance Corporation Ltd |
₹509.95 |
0.00 (0.00%) |
₹508.35 - ₹524.50 |
|
|
Prudent Corporate Advisory Services Ltd |
₹1,679.35 |
0.00 (0.00%) |
₹1,614.80 - ₹1,699.90 |
|
|
PTC India Financial Services Ltd |
₹38.99 |
0.00 (0.00%) |
₹38.80 - ₹39.80 |
|
|
Punjab & Sind Bank |
₹62.00 |
0.00 (0.00%) |
₹60.37 - ₹62.53 |
|
|
Punjab National Bank |
₹128.00 |
0.00 (0.00%) |
₹127.00 - ₹130.60 |
|
|
Rane Holdings Ltd |
₹1,228.10 |
0.00 (0.00%) |
₹1,220.20 - ₹1,258.85 |
|
|
RBL Bank Ltd |
₹248.60 |
0.00 (0.00%) |
₹247.90 - ₹252.50 |
|
|
REC Ltd |
₹568.70 |
0.00 (0.00%) |
₹567.00 - ₹582.60 |
|
|
Religare Enterprises Ltd |
₹210.65 |
0.00 (0.00%) |
₹209.35 - ₹211.95 |
|
|
Repco Home Finance Ltd |
₹483.50 |
0.00 (0.00%) |
₹480.20 - ₹488.10 |
|
|
Satin Creditcare Network Ltd |
₹220.50 |
0.00 (0.00%) |
₹219.05 - ₹228.00 |
|
|
SBFC Finance Ltd |
₹82.20 |
0.00 (0.00%) |
₹81.50 - ₹82.44 |
|
|
SBI Cards & Payment Services Ltd |
₹697.50 |
0.00 (0.00%) |
₹696.15 - ₹705.35 |
|
|
SBI Life Insurance Company Ltd |
₹1,412.30 |
0.00 (0.00%) |
₹1,407.00 - ₹1,451.95 |
|
|
SG Finserve Ltd |
₹423.25 |
0.00 (0.00%) |
₹420.00 - ₹439.95 |
|
|
Share India Securities Ltd |
₹1,534.45 |
0.00 (0.00%) |
₹1,525.05 - ₹1,547.00 |
|
|
Shriram Finance Ltd |
₹2,373.75 |
0.00 (0.00%) |
₹2,359.35 - ₹2,396.20 |
|
|
SMC Global Securities Ltd |
₹159.10 |
0.00 (0.00%) |
₹157.25 - ₹161.25 |
|
|
South Indian Bank Ltd |
₹27.05 |
0.00 (0.00%) |
₹27.00 - ₹27.55 |
|
|
Spandana Sphoorty Financial Ltd |
₹786.10 |
0.00 (0.00%) |
₹767.25 - ₹793.40 |
|
|
State Bank of India |
₹822.95 |
0.00 (0.00%) |
₹819.55 - ₹834.45 |
|
|
Star Health & Allied Insurance Company Ltd |
₹513.65 |
0.00 (0.00%) |
₹512.85 - ₹530.60 |
|
|
Summit Securities Ltd |
₹1,371.15 |
0.00 (0.00%) |
₹1,364.45 - ₹1,404.50 |
|
|
Suryoday Small Finance Bank Ltd |
₹189.65 |
0.00 (0.00%) |
₹188.55 - ₹196.95 |
|
|
Tamilnad Mercantile Bank Ltd |
₹465.85 |
0.00 (0.00%) |
₹463.00 - ₹477.45 |
|
|
Tata Investment Corporation Ltd |
₹6,512.25 |
0.00 (0.00%) |
₹6,460.00 - ₹6,569.40 |
|
|
Tourism Finance Corporation of India Ltd |
₹155.65 |
0.00 (0.00%) |
₹155.10 - ₹158.95 |
|
|
TruCap Finance Ltd |
₹63.71 |
0.00 (0.00%) |
₹62.45 - ₹65.16 |
|
|
UCO Bank |
₹57.31 |
0.00 (0.00%) |
₹57.05 - ₹58.66 |
|
|
Ugro Capital Ltd |
₹263.40 |
0.00 (0.00%) |
₹261.90 - ₹267.85 |
|
|
Ujjivan Small Finance Bank Ltd |
₹50.53 |
0.00 (0.00%) |
₹49.71 - ₹51.50 |
|
|
Union Bank of India |
₹154.95 |
0.00 (0.00%) |
₹154.55 - ₹158.60 |
|
|
UTI Asset Management Company Ltd |
₹926.05 |
0.00 (0.00%) |
₹911.45 - ₹939.00 |
|
|
Utkarsh Small Finance Bank Ltd |
₹52.16 |
0.00 (0.00%) |
₹51.89 - ₹52.47 |
|
|
VLS Finance Ltd |
₹270.05 |
0.00 (0.00%) |
₹265.10 - ₹290.00 |
|
|
Yes Bank Ltd |
₹22.74 |
0.00 (0.00%) |
₹22.51 - ₹22.85 |
|
S&P BSE Financial Services Sectors
| Sector Name | Advances | No Change | Declined |
|---|---|---|---|
| Banks | 9 | 37 | 28 |
| Credit Rating Agencies | 1 | 3 | 2 |
| Finance | 29 | 78 | 49 |
| IT - Hardware | 1 | 1 | 0 |
| IT - Software | 0 | 2 | 2 |
| Stock/ Commodity Brokers | 8 | 12 | 4 |
| Insurance | 1 | 8 | 7 |
| E-Commerce/App based Aggregator | 1 | 1 | 0 |
| Financial Services | 0 | 4 | 4 |
What is BSE Finance?
BSE Finance is a sectoral index on the Bombay Stock Exchange (BSE) which captures the performance of the finance sector in the Indian economy. It is a real-time index of 127 stocks representing the finance sector in the S&P BSE AllCap index. The basic industries eligible to be included in the BSE Finance index are Banks, Insurance, and other Financial Services.
This BSE Finance index was launched on February 25, 2022, with the first value date as September 18, 2020, with base value of 1000. Since its inception, the S&P BSE Finance share price has breached the levels of 7,500 at ~18.69x P/E multiples. The index value is calculated based on free-float capped market capitalisation value, with index stocks capped at 33%.
BSE Finance is reconstituted annually in September, with July’s last trading day as its reference date. Reconstitution involves both company size and sector classification reviews. Investible Weight Factors (IWFs), for calculating free-float market capitalisation, are also reviewed annually- which ignores foreign investment limits.
S&P BSE Finance index is managed and governed by S&P BSE Index Committee set up under Asia Index Private Ltd, which is a joint venture of S&P and BSE Ltd. The BSE Finance index is calculated in two currencies: INR and US$; for US$, spot foreign exchange rates are applied from Refinitiv’s data.
Orgainisation
S&P BSE Financial Services
Exchange
BSE
How is BSE Finance calculated? How are stocks selected for inclusion in BSE Finance?
The BSE Finance share price is computed by weighting its 127 stocks based on free-float capped market capitalisation, using the divisor methodology of the S&P Dow Jones equity indices. In this capped weighted index method, single stocks are confined to a maximum weight of 33%, and the excess weight is distributed proportionately among the remaining index stocks.
The securities must fulfil the following eligibility criteria to be included in the BSE Finance index:
- Should be domiciled in India and listed on the Bombay Stock Exchange.
- Should form a part of S&P BSE AllCap index.
- Should form a part of the Finance sector as per the BSE Sector Classification System.
- Should include all the eligible share classes of the company.
- Should have an impact cost of 0.5% or less over the past 6-month period.
- Should have a trading frequency >80% and a listing history of more than six months.
- Should have a turnover ratio of at least 5%.
- Companies that have come out with IPOs must have a listing history of at least one month in order to be eligible for inclusion.
- Companies that have undergone a scheme of arrangement, namely spin-offs, capital restructuring etc., must have a listing history of at least one month in order to be eligible for inclusion.
- Companies can be excluded in between the rebalancing dates due to mergers, delisting, takeovers, suspensions, surveillance objections, bankruptcies, or graded surveillance measure (GRM).
- Should exclude an index stock if its average daily total market capitalisation falls below INR 0.5 billion by the reference date of the last trading day in January.
The index value is calculated as follows –
Index value = Index Market Value / Divisor
Where,
Index Market Value = Price * Shares * IWF (Float Factor) *Fx rate * AWFi
AWFi = Adjusted Stock Market Value factor assigned on rebalancing date
Divisor = Index Market Value after rebalancing / Index Value before rebalancing
The BSE Finance index is reconstituted annually in September, with quarterly reviews being undertaken in the months of December, March, and June for index cap weightings. Single stocks are capped at 33%, while the aggregate weight of the top three constituents is capped at 63%. The stock rankings shall be the same for all the index constituents, whether it is based on their final weights or based on their free-float market cap.
S&P BSE Financial Services FAQs
BSE Finance index includes 127 stocks from the Finance sector, with the largest constituent weighing 20% of the index and the top 10 constituent stocks representing ~80% of the index- making it a highly stock-concentrated index.
How to Invest in BSE Finance?
There is no direct way to invest in BSE Finance. You may choose to invest in individual stocks, through a demat account, in a similar index-weighted proportion. Else, you may invest in index funds that passively track the BSE Finance index. However, exposure should be taken only for portfolio diversification purposes.
Should you Invest in the BSE Finance index? Is the investment in BSE Finance safe?
BSE Finance index has generated annualized price returns of 6.27% in the past 5 years and 11.92% in the past 10 years. Its annualized risk-adjusted returns ratio comes to 0.26 for a 5-year period, which improves to 0.54 for a 10-year time horizon. It experiences comparatively higher volatility levels vis-à-vis a more diversified AllCap index. BSE Finance’s projected P/E multiples stand at ~15x.
How has BSE Finance performed against BSE AllCap?
BSE Finance index has underperformed the BSE AllCap index over the past 5-year period by generating only 6.99% total returns v/s AllCap’s 11.38%. However, it has performed broadly in line over a longer horizon of a 10-year period, where it earned 13.02% returns v/s 13.83%, but at relatively higher volatility levels in all calendar years.
What is the objective of BSE Finance?
BSE Finance index is a subset of the S&P BSE AllCap index that is designed to reflect the performance of the financial services sector of the economy. It includes the largest and most liquid finance companies in the index and can serve as a reference index for benchmarking of funds
