BSE Midcaps, Smallcaps, 100, 200 & 500

What is BSE Midcaps, BSE Small Caps, BSE 100, BSE 200 & BSE 500?

Well, to understand what all these indices means, you have to first understand what is stock market index? Well, A stock market Index is the general cross section of the whole stock market. In the stock market Index, we put few large cap & actively traded stocks from each Industry & thus whole the Index will present the over all movement and performance of the stock market.

Say for Example, Sensex.

Say for Example, Sensex. Sensex is BSE Large Cap or BSE Top 30. Understand? Well, we usually don’t use the words BSE Large Cap or BSE 30. But it means Sensex.

BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks started in 01 of jan, 1986. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around one-fifth of the market capitalization of the BSE. The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-SENSEX is 1978-79.

The Base Value of Sensex was 100. and today it is 14,000. Sensex is the collection of 30 large cap companies of India from various Industries.

BSE Mid-Cap & 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 companies with relatively smaller market capitalization. Over the years, BSE Mid-Cap and BSE Small-Cap indices have proven to be a great utility to the investing community.

Salient feature of these indices are :

• Launched in April 2005
• Base year of these indices is 2002-2003
• Base index value is 1000 for each of these indices
• Based on a free-float methodology
• Scrips that are classified as Z group, scrips traded under permitted category and scrips with the trading frequency of less than 60% days in preceding three months are not considered for inclusion in these indices
• Constructed on 80%-15%-5% method whereby companies aggregating 98.5% of average market capitalization 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 aggregate market capitalization and BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%).
• Number of companies in each of these indices is variable.
• BSE Mid-Cap and BSE Small-Cap index are highly correlated with broad based BSE-500 index
• Constituents of these indices are reviewed on a quarterly basis.

BSE-100, BSE-200 & BSE-500 -

BSE-100 - A broad-based index, the BSE-100 was formerly known as the BSE National index. This Index has 1983-84 as the base year and was launched in 1989. Base Index Value is 100 and Number of scripts are 100.

BSE – 200 – Number of scripts here are 200.

BSE – 500 – This is a broad index. Here the number of scripts are 500. Bombay Stock Exchange Limited constructed a new index, christened BSE-500, consisting of 500 scrips w.e.f. August 9, 1999. The changing pattern of the economy and that of the market were kept in mind while constructing this index.
BSE-500 index represents nearly 93% of the total market capitalization on BSE. BSE-500 covers all 20 major industries of the economy. In line with other BSE indices.

Base Index Value is 1000.

In short, all of these indices represent the cross section of the market. BSE 500 is the broadest Index because it includes 500 listed companies so we can have more accurate and clear idea about the stock market while Sensex is the most narrowed Index comprising of only 30 large cap companies.