BSE Launches India Defence Index — Check Full List Of Constituents

BSE launched a specific index to gauge the performance of the listed companies involved in defence manufacturing and production. Its wholly-owned subsidiary BSE Index Services Pvt. Ltd. has incorporated the BSE India Defence index on Wednesday. The BSE India Defence index has derived constituents from the BSE 1000 index.

The weighting method applied to incorporate the index is capped free float, and the market cap is adjusted with the base value as 1000, the market structure provider said in a media release. The first value date of the BSE India Defence Index is on June 19, 2017. It is reconstituted semi-annually in June and December.

The BSE India Defence Index has 33 constituents. Take a look at the top ten constituents in the index.

Investors can use the BSE India Defence Index for running passive strategies such as exchange-traded funds and index funds. They can also utilise the index to benchmark portfolio management strategies, mutual fund schemes, and fund portfolios, the press release said.

BSE has come up with the specific index to track the defence companies' performance at a time when their recent good performance grabbed the attention of many investors. On the National Stock Exchange, the NSE India Defence index had outperformed other sectoral indices for two days in a row on Wednesday. On a year-to-date basis, the index is leading gains.

"The defence sector in India is undergoing a transformative phase, driven by policy reforms, increased budgetary allocations, and a rising emphasis on indigenous manufacturing," said Ashutosh Singh, managing director and CEO.

With the BSE India Defence index, investors can now access a broader spectrum of market opportunities and further enrich investment strategies with this latest addition to BSE's suite of indices, the media statement said.