BSE Index Services Pvt. Ltd., a subsidiary of BSE, introduced the BSE Total Market Index (TMI) to monitor companies representing 98% of the BSE AllCap Index by total market capitalization. This index will cover at least 98% of the BSE AllCap universe, with a minimum of 1,000 constituent stocks, making it a comprehensive benchmark for the Indian equity market.
The BSE Total Market Index, with a base value of 1,000 and a starting date of September 16, 2005, will undergo semi-annual reconstitution in June and December. Ashutosh Singh, the Managing Director and CEO of BSE Index Services Pvt. Ltd., highlighted that the index is designed to expand alongside India’s capital markets’ growth, ensuring a broad and relevant representation of the listed market capitalization universe.
Singh emphasized that the BSE Total Market Index is structured to evolve with India’s capital market, providing a broad and pertinent representation of the market’s growth trajectory. This new benchmark is suitable for passive investment products like exchange-traded funds (ETFs) and index funds, in addition to its role as a benchmark for portfolio management services (PMS), mutual fund schemes, and institutional portfolios.
In January, BSE Index Services had also launched the Derivative Stocks Index, tracking the performance of derivative-linked constituents of the BSE 500 Index. Similar to the Total Market Index, this derivative index aims to support passive investment strategies through ETFs and index funds, while also serving as a benchmark for PMS strategies, mutual fund schemes, and investment portfolios.
