BSE-500 Index

Bombay Stock Exchange Limited constructed a new index, christened BSE-500, consisting of 500 scrips w.e.f. August 9, 1999. The changing pattern of the economy and that of the market were kept in mind while constructing this index.

BSE-500 index represents nearly 93% of the total market capitalization on BSE. BSE-500 covers all 20 major industries of the economy. In line with other BSE indices, effective August 16, 2005 calculation methodology was shifted to the free-float methodology.

Index Specification:

Base Year	1,February,1999
Base Index Value	1000
Date of Launch	9,August,1999
Method of calculation	Launched on full market capitalization method and effective August 16, 2005, calculation method shifted to free-float market capitalization.
Number of scrips	500
Index Constituents	Click here for list of constituents
Index calculation frequency	Real Time
Index Calculation and maintenance	Click here for index calculation and maintenance
Index Reach	Click here for scrip-wise, sector wise market capitalization, weightage etc.
Market capitalization and Turnover Coverage	Click here for market capitalization and turnover coverage
Historical Values for BSE-500 & Sectoral Indices	Index, Price Earnings, Price to Book Value ratio and Dividend Yield %
Historical Replacements	Click here for history of replacements
Historical Notices	Click here to search historical notices on Index Replacements

Selection of the Base Year and Base Index Value:

The base date was fixed after a detailed analysis of the relative volatility of BSE-200, the index closest to BSE-500, over the last 8 years. The coefficient of variation of BSE-200 for 1998-99 was one of the lowest in this period. Hence, 1998-99 was chosen as the base year, and within this, February 1, 1999 was selected as the base date for its proximity to the current period. The base value was fixed at 1000 points in order to keep the index comparable with other similar indices.

BSE-500 index - Scrip Selection Criteria:

The general guidelines for selection of constituents in BSE-500 are as follows:

1. Trading Frequency: The scrip should have been traded on 75% of the trading days in the last three months. Exceptions can be made for extreme reasons like scrip suspension etc.
2. Final Rank: The scrip should figure in the top 750 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalization and 25% weightage to the liquidity rank based on three-month average daily turnover & three-month average impact cost.
3. Industry/Sector Representation: Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.
4. Track Record: In the opinion of the BSE Index Committee, the company should have an acceptable track record.