BSE Mid-Cap and BSE Small-Cap Index

BSE introduced the new index series called 'BSE Mid-Cap' index and 'BSE Small-Cap' index to track the performance of the companies with relatively small market capitalization that would exclusively represent the mid and small cap companies listed on the Stock Exchange. BSE-500 index - the broad based index that is considered as a BSE Composite index represents more than 93% of listed universe. The movement of BSE-500 index used to get influenced by companies with large market capitalization and with the result, the need for a separate indicator to capture the trend in the specific class of companies (with lower market capitalisation) was felt. BSE Mid-Cap and BSE Small-Cap index would prove to be a great utility to the investing community as they would truly capture the movement of the segments they are represent (mid and small).

Salient feature of these indices are:

Base year of these indices would be 2002-2003

Base index value would be 1000 for each of these indices

Based on a free-float methodology

Constructed on 80%-15%-5% method whereby top 750 companies by average market capitalization and liquidity are categorized under large, mid and small cap segment respectively from the list of eligible universe of BSE.

BSE Mid-Cap tracks the performance of scrips between 80 & 95% of 750 companies and BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%).

Number of companies in each of these indices would be variable. On the date of launch (April 11, 2005), these indices comprised of 231 and 425 constituents in BSE Mid-Cap and BSE Small-Cap index respectively.

Correlation of 0.98 and 0.93 for BSE Mid-Cap and BSE Small-Cap index respectively with broad based BSE-500 index

Constituents of these indices are reviewed on a quarterly basis