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Open
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6815.33
| Company | Market Cap | Market Price | Sector |
|---|---|---|---|
25,008.00 | 5,466.50 -202.00 (-3.56%)▼ | Pharmaceuticals | |
15,163.99 | 204.64 -7.02 (-3.32%)▼ | Banks | |
15,490.82 | 1,525.30 -52.10 (-3.30%)▼ | Healthcare | |
22,178.25 | 2,446.90 -71.70 (-2.85%)▼ | Stock, Commodity Brokers | |
17,979.34 | 1,718.60 -49.00 (-2.77%)▼ | Pharmaceuticals |
What is the BSE Smallcap 250?
The BSE Smallcap 250 is a broad-based index that represents the performance of the top 250 small-cap companies listed on the Bombay Stock Exchange (BSE). These companies are ranked 751 to 1000 in terms of market capitalisation and are known for their growth potential in emerging sectors. The index provides a comprehensive snapshot of India’s small-cap segment and is useful for benchmarking mutual funds, ETFs, and other investment vehicles focused on small-cap equities. These stocks often belong to niche industries or are regional leaders with scalable business models.
While small-cap stocks can offer higher returns due to their expansion potential, they also carry higher risks, including liquidity constraints and market volatility. The BSE Smallcap 250 index is suitable for long-term investors who have a higher risk appetite and are looking to diversify into fast-growing but relatively under-researched companies. It reflects investor sentiment towards entrepreneurial ventures and sectors poised for structural growth in the Indian economy.
BSE Smallcap 250 selection criteria
The index selects the top 250 companies from the BSE Smallcap universe based on their full market capitalisation. To be eligible, companies must not be part of the top 750 listed stocks by market cap, which includes large and mid-cap firms. The selection focuses on tradability, market depth, and representation across sectors. Stocks must meet minimum thresholds for trading frequency and turnover. The BSE has no sectoral capping, which means exposure varies basis market trends.
Companies undergoing major corporate actions like mergers or delistings may be excluded. The index is rebalanced semi-annually in June and December, and it is maintained by the Asia Index Private Limited, a joint venture between S&P Dow Jones Indices and BSE. This method ensures that the index remains up to date and relevant for investors seeking small-cap exposure.
How is the BSE Smallcap 250 index calculated?
The BSE Smallcap 250 is calculated using the free-float market capitalisation-weighted method, where only publicly tradable shares are considered. This approach eliminates the impact of promoter holdings and provides a more accurate picture of actual market participation. The base date is April 1, 2005, and the base value is set at 1000. The index is calculated in real-time during trading hours, using live stock prices. Asia Index Pvt Ltd manages the index operations and reviews. Rebalancing ensures that new and promising small-cap companies are included while removing those that no longer qualify due to poor performance or structural changes. This methodology provides a reliable benchmark for small-cap investments and captures the high-growth potential of emerging businesses in India.
BSE Smallcap 250 FAQs
How to invest in the BSE Smallcap 250?
You can invest through small-cap mutual funds or ETFs that track this index. These are accessible via brokerage platforms or mutual fund distributors.
What is the objective of the BSE Smallcap 250?
The objective is to capture the performance of India’s top 250 small-cap companies, offering exposure to high-growth potential businesses beyond the large- and mid-cap space.
Factors that can impact performance of the BSE Smallcap 250 index
Market liquidity, economic cycles, policy changes, investor risk appetite, and company-specific developments can heavily influence the index’s movements.
Is investment in the BSE Smallcap 250 safe?
Small-cap investments carry higher volatility and liquidity risks. Thus, they are suitable only for long-term investors with a high risk appetite and ability to withstand short-term market swings
Benefits of investing in the BSE Smallcap 250
The index provides access to early-stage companies with strong growth potential, offers sectoral diversity, and enables participation in India’s entrepreneurial and industrial expansion.