BSE 200

What is the BSE 200?

The BSE 200 is a broad-market index designed to measure the performance of the top 200 companies listed on the Bombay Stock Exchange (BSE) based on free-float market capitalisation. It includes large-cap, mid-cap, and select small-cap companies, making it one of the most diversified indices available for tracking the Indian equity market. Covering nearly 90% of the total market capitalisation on the BSE, the index spans various sectors and industry groups. It provides a comprehensive overview of India’s economic health through the lens of its most actively traded and financially stable companies.

The BSE 200 is a preferred benchmark for mutual funds, ETFs, and institutional investors looking for a broad yet investable representation of the Indian equity market. It balances growth from mid- and small-cap stocks with the relative stability of large caps, making it ideal for long-term, diversified investment strategies.

BSE 200 selection criteria

Constituents are selected from the universe of BSE-listed companies based on a combination of full market capitalisation, free-float market cap, trading volumes, and liquidity. The top 200 companies are selected in a way that reflects the overall market, with an emphasis on maintaining adequate sectoral representation. Eligibility filters include minimum listing history, frequency of trading, and compliance with disclosure norms. The index covers a broad cross-section of the Indian economy—from banking and IT to manufacturing, consumer goods, and infrastructure.

The composition of the index is reviewed semi-annually by Asia Index Pvt Ltd (a joint venture between BSE and S&P Dow Jones Indices), ensuring that underperforming or illiquid stocks are replaced by better-performing candidates. This regular rebalancing maintains the relevance, quality, and investability of the index.

How is the BSE 200 index calculated?

The BSE 200 is calculated using the free-float market capitalisation-weighted method. This means only shares available for public trading are considered in determining the weight of each constituent. The base date is February 1, 1999, and the base value is 1000. The index is updated in real time during trading hours using the latest traded prices of its components. Asia Index Pvt Ltd is responsible for maintaining and disseminating the index. At the time of rebalancing, the weights of individual stocks or sectors may be adjusted to ensure that no single stock or industry dominates the index. This methodology helps deliver a transparent, diversified, and performance-driven benchmark that can be used effectively by both passive and active investors.