BSE Launches India Defence Index: Who Are The Key Derived Constituents?

The Bombay Stock Exchange bourse has launched a defence specific index to monitor the performance of listed companies involved in defence linked production.

BSE India Defence index has finally been incoporated and derived its constituents from the BSE 1000 index.

The BSE India Defence Index has 33 constituents. 

Top Constituents In BSE India Defence index

The top consituents in this newly launched defence-specific index are BEL, HAL, Solar Industries, Mazagon Dock Shipbuilders, M&M, L&T, Adani Enterprises, Cochin Shipyard, Bharat Dynamics and Ashook Leyland.

The market cap is adjusted with the base value as 1000, while the weighted method was applied to incoporate the index is capped free float.

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The first value date of the BSE India Defence Index is on June 19, 2017.

Investors can use the BSE India Defence Index for running passive strategies such as exchange-traded funds and index funds.

On the National Stock Exchange, the NSE India Defence index had outperformed other sectoral indices for the last two days.

Ashutosh Singh, Managing Director and CEO, “The defence sector in India is undergoing a transformative phase, driven by policy reforms, increased budgetary allocations, and a rising emphasis on indigenous manufacturing."

With the BSE India Defence index, investors can now access a broader spectrum of market opportunities and further enrich investment strategies with this latest addition to BSE's suite of indices, as per an official statement. 

This new index can be used for running passive strategies such as ETFs and Index Funds as well as gauging the performance of the defence sector in India, BSE Index Services.