Did BSE Index Services Just Launch the 'BSE India Defence Index'?
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Synopsis
The BSE has launched the new BSE India Defence Index, designed to track the defence sector's performance. This index comes at a crucial time as India's defence sector evolves, presenting new investment opportunities. Discover how this index could reshape investment strategies in the defence landscape.
Key Takeaways
- BSE India Defence Index launched to track defence stocks.
- Inaugural value date set for June 19, 2017.
- Reconstitution occurs every June and December.
- Index utilizes Capped Free Float - Adjusted Market Cap methodology.
- Enhances transparency and investment options in the defence sector.
Mumbai, Aug 13 (NationPress) - BSE Index Services Pvt Ltd, a fully owned subsidiary of the Bombay Stock Exchange (BSE), has officially unveiled a new index called the BSE India Defence Index. This index is designed to monitor the performance of stocks associated with the defence sector, as stated by the stock exchange.
Stocks that are part of specific foundational industries or linked to defence will be incorporated into this index.
The BSE India Defence Index is calculated based on the components of the BSE 1000 Index, utilizing a Capped Free Float - Adjusted Market Cap methodology, with a base value set at 1000.
The inaugural value date is June 19, 2017, and the index will undergo reconstitution every six months in June and December, confirmed the BSE.
According to Ashutosh Singh, Managing Director and CEO of BSE Index Services, "The defence sector in India is experiencing a significant transformation, fueled by policy changes, increased budget allocations, and a growing focus on domestic manufacturing."
The BSE India Defence Index provides investors with a clear, rules-based, and investable benchmark to leverage this growth narrative.
This index will function not only as a measure of the sector's performance but also as a launching pad for new investment products and diversification strategies, Singh further noted.
Investors can utilize this new index to gauge the performance of India's defence industry and to implement passive investment strategies such as index funds and exchange-traded funds (ETFs).
Moreover, it can serve as a benchmark for fund portfolios, mutual fund schemes, and portfolio management strategies.
With this latest addition to the BSE's index offerings, investors gain access to a broader array of market opportunities, further enriching their investment strategies.
Earlier this week, the BSE increased the operating profitability requirement to ₹15 crore for the last three financial years, with a minimum operating profit of ₹10 crore in each of those years, thereby tightening eligibility criteria for SME companies aiming to transition to the mainboard.
The exchange indicated that firms listed on other reputable stock exchanges wishing to directly list on the BSE, India’s oldest stock exchange, must also comply with these new criteria.
The BSE emphasized that this move aims to enhance the quality of listings by fostering transparency and disclosure.
Point of View
I believe the launch of the BSE India Defence Index reflects a significant step towards recognizing the evolving landscape of India’s defence sector. With increased governmental support and a focus on indigenous production, this index not only provides a metric for investors but also underlines India's commitment to bolstering its defence capabilities. At NationPress, we support this initiative as a means of fostering transparency and growth in a vital industry.
NationPress
19/08/2025
Frequently Asked Questions
What is the BSE India Defence Index?
The BSE India Defence Index is designed to track the performance of stocks associated with the defence sector in India.
When was the BSE India Defence Index launched?
The index was officially launched on August 13, 2023.
How often is the BSE India Defence Index reconstituted?
The index is reconstituted semi-annually, in June and December.
What is the base value of the BSE India Defence Index?
The base value of the index is set at 1000.
Who can benefit from the BSE India Defence Index?
Investors looking to capitalize on the growth of India's defence sector can benefit from this index.
