Overview

• BSE Index Services launched the BSE India Defence index on August 13 to track defence-linked companies drawn from the BSE 1000 using a capped free-float, adjusted market-cap methodology with a base value of 1000.
• The index’s historical value date is June 19, 2017 and its constituents will be reconstituted every June and December.
• BSE positions the new benchmark for passive strategies such as ETFs and index funds and for gauging portfolio management and mutual fund performance.
• The launch mirrors a sectoral shift driven by policy reforms, increased defence budgets and a greater focus on domestic manufacturing, according to Ashutosh Singh.
• Strong gains in the NSE India Defence index, which outperformed other sectoral benchmarks for two days and leads year-to-date returns, underline growing investor demand for defence-focused benchmarks.