- BSE launched the India 5 Year Sovereign Bond Index to track five-year government bonds
- The index began on June 4, 2026, with base value 100 and monthly reconstitution
- It includes a single fixed-coupon plain vanilla government security and is INR denominated
BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE on Thursday has launched the BSE India 5 Year Sovereign Bond Index, aimed at tracking the performance of India's benchmark five-year government security and providing investors with a new avenue for passive debt investing.
The benchmark seeks to measure the performance of the benchmark five-year Indian sovereign bond and is designed to serve as a reference point for a range of investment products and portfolio strategies.
Launched on June 4, 2026, the index has a base value of 100 and a first value date of April 27, 2018. It will be reconstituted on a monthly basis and currently comprises a single constituent drawn from the universe of fixed-coupon plain vanilla government securities. The index is calculated in Indian rupees.
According to BSE, the new benchmark can be used by asset managers to launch passive investment products such as exchange-traded funds (ETFs) and index funds. It can also serve as a benchmark for actively managed mutual fund schemes, portfolio management services (PMS), and other fixed-income investment strategies.
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The exchange said the launch will help broaden investment opportunities for market participants seeking exposure to sovereign debt and provide a transparent benchmark for evaluating fixed-income performance.
As of launch, the BSE India 5 Year Sovereign Bond Index stood at 104.52 on a price return basis and 176.51 on a total return basis.
Performance data shows the total return version of the index generated returns of 2.73% over one year, 7.01% over three years, and 5.83% over five years. Since inception, the total return index has delivered annualised returns of 5.81%.
On a price return basis, the index will see a decline of 3.40% over the past year, while generating returns of 0.11% over three years and a marginal decline of 0.87% over five years. Since inception, the price return index has delivered annualised gains of 0.47%.
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