BSE BANKEX

BSE BANKEX 

The S&P BSE BANKEX includes the top banking stocks on the BSE 500 list, The BSE BANKEX index was introduced in June 2003 to measure the performance of the banking industry. Its base value was 1,000 points. The value and rank of stocks are determined using the modified market cap weighted method. BSE BANKEX limits a stock's maximum weightage to 22%. It’s different from other indices like BSE Sensex which weigh stocks based on total free-float market capitalisation.  

How is BSE Bankex Calculated? 

The BSE BANKEX index comprises stocks based on the modified market capitalisation-weighted method. So, it includes stocks with the largest market capitalisation among the top 500 BSE stocks. To be included in the index, a stock must meet the following criteria:

• The BSE BANKEX index companies must be listed in the BSE All Cap index for at least six months.
• The stock must be actively traded for at least 80% of trading sessions on the BSE within the past six months.
• The average trading value of a stock should exceed Rs. 1 billion.

The banking stocks that comprise the BSE 500 are then shortlisted depending on their ranking. The BSE BANKEX index is currently calculated using ten banking stocks.  

Stock Selection Criteria in BSE BANKEX 

A stock must fulfil the following criteria to be included in the BSE BANKEX:

• Past Listing: The stock must have at least three months of BSE BANKEX listing history. The only exception might be if a newly listed company's total market value is in the top ten in the BSE universe.
• Trading History: The BSE BANKEX scrip should be regularly trading on every trading day, for the past three months.
• Market Capitalisation: To be eligible for BSE BANKEX, a stock must be among the top 100 firms determined by the 3-month average total market capitalisation.

Stocks Selected Process in BSE BANKEX

• The BSE Bankex share price universe is one of the S&P BSE 500 components.
• The members of S&P BSE BANKEX are weighted according to their float-adjusted market capitalisation, with a 22% weight cap.
• The stock's trading frequency must be at least 90% in the last six months.
• The stocks are retained, but non-constituents are added based on their average float-adjusted market capitalisation rank. This ensures the index has a minimum of 10 stocks.