BSE India Infrastructure Index

S&P BSE India INFRA index share price

The Bombay Stock Exchange (BSE) has a thematic index called BSE India INFRA that tracks the performance of the country's infrastructure sector. The S&P BSE AllCap index is used to pick 30 varied equities that represent the infrastructure and related operations sector. Seven industries make up the base infrastructure index India stocks: Capital Goods, Power, Transport Services, Finance, Utilities, and Housing.

History of S&P BSE India Infrastructure Index

Launched on May 19, 2014, the BSE INFRA index has a base value of 100 and a first value date of April 3, 2006. The S&P BSE India INFRA share price has surpassed 250 at about 10.35x P/E multiples since its launch.

How is the S&P BSE India INFRA index calculated?

Using the S&P Dow Jones equity indices' divisor technique, the 30 stocks of the S&P BSE nifty infrastructure index stocks are weighted based on their adjusted market capitalization values to determine their share price. Semi-annual index weight rebalancing is carried out using market capitalization that has been adjusted for floating.

The index value is calculated as follows – 

Index value = Index Market Value / Divisor

Where,

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

AWFi = Adjusted Stock Market Value factor assigned on rebalancing date

Divisor = Index Market Value after rebalancing / Index Value before rebalancing

What are the criteria to be included in the BSE India INFRA index?

For the securities to be listed in the BSE India INFRA index, they must meet the following eligibility requirements: 

• The company should be listed on the Bombay Stock Exchange and have its headquarters in India.
• India infrastructure companies should be included in the S&P BSE AllCap index.
• Companies should belong to the BSE Sector Classification System's infrastructure sub-groups, which are divided into five clusters: utilities, transportation, NBFCs, energy, and construction and engineering.
• Ten stocks total for each infrastructure cluster category should be the maximum.
• Companies must have a minimum of six months' worth of listing history.
• It should be worth at least ₹1 billion on a daily average for free-float market capitalization. This cap for the current constituents is ₹800 million.
• It has to have an annualized trading value of at least ₹200 million; for the equities that now make up the composition, that amount is ₹160 million.
• At least 10% should be the turnover percentage; for the existing members, that number is 8%.
• The last 6 months should have included no more than five days without trading.
• Should remove the stocks from each infrastructure cluster that are ranked higher than 10 on an average daily free float market cap over a period of six months. If there is a deficit, stocks with a ranking of less than 15 will not be included.
• All equities must be included in the top 20, regardless of whether they are new or current, based on the average daily free float market cap during 6 months.
• The remaining ten stocks, which are rated from 21 to 40 according to the highest rank, should only be included from the current constituents.

How to Invest in the S&P BSE India INFRA index?

The S&P BSE India INFRA index cannot be directly invested in. Using a demat account, you can invest in individual equities in a comparable index-weighted ratio. Alternatively, index funds that provide exposure to the infrastructure sector could be a good option.