BSE Allcap

About S&P BSE AllCap

The Bombay Stock Exchange (BSE) has a broad, comprehensive, rules-based index called BSE AllCap, which tracks the performance of a subset of the companies that make up the BSE LargeCap (70%), BSE MidCap (15%), and BSE SmallCap (15%) indices. This index, which is updated in real-time, comprises 1,106 stocks from 19 different sectors: Capital Goods, Housing Related, Chemical & Petrochemical, Finance, IT, Oil & Gas, FMCG, Transport Equipment, Healthcare, Metal, Metal Products & Mining, Power, Consumer Durables, Telecom, Agriculture, Transport Services, Utilities, Textile, Tourism, and Media & Publishing.

History of S&P BSE AllCap

Launched on April 15, 2015, the S&P BSE AllCap index had a base value of 1000 and its initial value date was September 16, 2005. The share price of S&P BSE AllCap has surpassed 6,000 at around 21.75x P/E multiples since its debut. The BSE AllCap index has a weighted average carbon intensity of 669.89.

How are stocks selected for inclusion in BSE AllCap?

The securities must fulfill the following eligibility criteria to be included in the BSE AllCap index: 

1. It must be listed on the Bombay Stock Exchange and have its headquarters in India.
2. It ought to be included in the S&P BSE Midcap, S&P BSE Smallcap, or S&P BSE Largecap indices.
3. It should consist of all of the company's common shares as well as shares that have differential voting rights (DVRs).
4. In the universe of listed firms of the BSE, it should be ranked among the top 1200 equities by average daily total market capitalization.
5. Must have a minimum of ₹1.5 billion in total market capitalization on a daily average.
6. The transacted value should be annualized to a minimum of ₹0.5 billion.
7. It must have a minimum 5% turnover percentage.
8. A trading frequency of more than 80% is ideal.
9. It must, at the time of the rebalancing reference date, have an Investable Weight Factor (IWF) of at least 10%.
10. Should have had an impact cost during the previous six months of no more than 1%.
11. a minimum of 700 stocks each time there is a rebalancing date.
12. Should keep a 5% cushion in place to lessen turnover.
13. To be eligible for index inclusion, companies that have completed their initial public offerings (IPOs) must have a minimum of one month of listing history.
14. Companies with a minimum of one month of listing history are eligible for inclusion if they have completed a plan of arrangement, such as spin-offs, capital restructuring, etc.
15. Businesses that undergo mergers, delistings, takeovers, suspensions, objections to surveillance, bankruptcies, or graded surveillance measures (GRM) may be omitted from consideration between the rebalancing dates.  

Management Outlook of S&P BSE AllCap

The S&P BSE Index Committee, established under Asia Index Private Ltd., a joint venture between S&P and BSE Ltd., is responsible for overseeing and managing the S&P BSE AllCap index. Two currencies are used to create the BSE AllCap index: INR and US$. Spot foreign exchange rates for the US$ are derived from data provided by Refinitiv. Both currencies, it has an index variation in the shape of S&P BSE Allcap TR.

How is S&P BSE AllCap Calculated?

The S&P BSE AllCap share price is calculated by applying the S&P Dow Jones equity index divisor methodology to weight its 1106 stocks according to free-float market capitalization. 

The index value is calculated as mentioned below

–

Index value = Index Market Value / Divisor

Where,

Index Market Value = Price * Shares * IWF (Float Factor) *Fx rate

Divisor = Market Value / Index Value

Every year in September, the S&P BSE AllCap index is reconstituted. Quarterly reviews are conducted in December, March, and June to assess the impact cost and trading frequency of the index's constituents.