The Bombay Stock Exchange (BSE) is the oldest stock exchange in India, but its indices have made trading easier for traders. The two largest stock exchanges are the BSE and the National Stock Exchange. Companies are divided into Largecap, Midcap, and Smallcap based on their free-float market capitalisations and the number of liquid shares offered. Largecap stocks are more reliable due to their financial stability, but can be expensive and difficult to buy for some traders. The BSE Smallcap Select index measures the performance of the first 60 companies in the S&P BSE Smallcap index, which hold the greatest amount of liquid shares among all other Smallcap companies. The value of the index depends on the BSE Smallcap Select share price, which is dynamic and constantly changing.
BSE Smallcap Select Index Calculation
Overview of BSE Smallcap Select Index Calculation:
Divide companies into Largecap, Midcap, and Smallcap.
Segmentation based on 85-15-5 rule.
Largecap companies have a market cap of 20,000 crore INR or more.
Market capitalisations for Midcap firms range from 20,000 to 5,000 crore INR.
Smallcap companies have a market cap below 5,000 INR.
Index value depends on S&P BSE Small cap share price.
The BSE Smallcap Select Share Price can be Calculated as Follows
BSE Smallcap Select Share Price = Total Free-Float Market Capitalisation x Base Index Value / Base Market Capitalisation
Only businesses ranked in the top 60 of the Smallcap Select index will have their free-float market capitalisations taken into account.
The Small-Cap firms included in this index are the most stable and least volatile. Because of this, their shares are less risky and more affordable, making them an excellent investment for traders on a tight budget. When trading, be sure to maintain a careful eye on the index. It is crucial to ensure that you obtain the most recent data because these values fluctuate virtually daily.
An index is a group of a specific type of securities. They can be stocks, derivatives, or other financial instruments. The index represents as well as tracks the performance of the asset class or the market segment.
Indices are used to track the performance of a group of securities. Indices show the overall performance of an asset class or market sector.
There are over 350 indices listed on the National Stock Exchange (NSE).
There are over 50 indices listed on BSE.
The Nifty 50 is the largest Indian index. It is one of the most actively traded indices in the world.
Sensex and Nifty 50 are the two oldest indices in India.
The Sensex and the Nifty 50 are the two major indices in India.
