BSE BANKEX

What is BSE Bankex?

BSE Bankex is a sectoral index that tracks the performance of major banking companies listed on the Bombay Stock Exchange (BSE). It comprises leading public and private sector banks that reflect the health and trends of India’s banking and financial services industry. The index includes institutions involved in commercial banking, lending, credit services, and financial intermediation. The BSE Bankex index is one of the most actively tracked sectoral indices and is considered a key indicator of India’s economic and credit environment. It features heavyweight banks such as HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India.

Movements in this index are closely linked to interest rate cycles, credit growth, asset quality, and monetary policy actions. It serves as a performance benchmark for bank-focused mutual funds and ETFs and is widely used by institutional investors for sector-specific strategies. For retail investors, it provides focused exposure to the banking space, which is integral to India’s growth engine.

BSE Bankex selection criteria

The constituents of the BSE Bankex are selected from the banking sector of the BSE-listed universe. Eligible companies must be classified as banks and must meet minimum thresholds for market capitalisation, trading frequency, and liquidity. The selection includes both public and private sector banks, ensuring a comprehensive view of the Indian banking landscape. Typically comprising 10 to 12 banks, the index aims to represent leaders in the sector based on size and tradability. Sectoral balance within banking is maintained by including both retail- and corporate-focused banks.

The index is reconstituted semi-annually and maintained by Asia Index Pvt Ltd, a joint venture between S&P Dow Jones Indices and BSE. During reviews, stocks may be added or removed based on performance, regulatory actions, or changes in market positioning.

How is the BSE Bankex index calculated?

BSE Bankex follows the free-float market capitalisation-weighted method, which gives more weight to companies with a larger public shareholding. The base date is January 1, 2002, and the base value is set at 1000. The index is calculated and updated in real time during trading hours using the latest stock prices. Asia Index Pvt Ltd oversees the index calculation and periodic rebalancing to ensure that it reflects current market dynamics and retains investor relevance. Caps may be applied to limit the weight of any single stock to ensure diversification. The use of free-float methodology ensures that the index represents only the investable portion of each company’s shares.