Summary:
BSE has launched three new growth factor indices covering large-cap, mid-cap and BSE 500 stocks. The indices select companies based on earnings and sales growth, with quarterly reviews and stock-level weight caps. The move expands BSE's factor-index offering and could support new passive investment products.
BSE Index Services has rolled out three new factor-based indices that seek to capture the performance of companies that are exhibiting relatively strong earnings and sales growth. The new indices are:
- BSE 500 Growth 50
- BSE MidCap 150 Growth 30
- BSE LargeCap 100 Growth 30
They offer exposure to growth strategy as an addition to momentum, quality, enhanced value, low volatility and multi-factor strategies.
The three new indices add a growth strategy to the list of BSE’s factor indices, offering investors and asset managers a wider range of options to track and invest in the stock market.
Overview of the Three BSE Growth Indices
The new BSE indices identify firms with high earnings per share growth and sales per share growth. The BSE 500 Growth 50 tracks the performance of 50 stocks chosen from a larger BSE 500 universe and the BSE MidCap 150 Growth 30 and the BSE LargeCap 100 Growth 30 track the performance of 30 stocks each selected from the BSE MidCap 150 and BSE 100 LargeCap universes respectively.
The weightage of individual stocks in the BSE 500 Growth 50 is limited to 4% while for the MidCap 150 Growth 30 and the LargeCap 100 Growth 30 it is 5%. The weightage has been determined using float-adjusted market cap weighted methodology with growth scores, with a cap on individual stocks’ weight to prevent extreme overexposure.
The three indices have a base value of 1,000 and a base date of June 23, 2008. They will be reviewed every quarter in March, June, September and December.
The LargeCap Growth Index Has Been a Consistent Grower
The factsheet of the BSE LargeCap 100 Growth 30 for July 2026 showed that its total return index value was 10,919.70. According to the data backtested and presented by BSE, the LargeCap 100 Growth 30 delivered total returns of 20.97% annually on a three-year annualised basis and 14.37% annually over five years.
Its price-to-earnings (P/E) ratio stood at 23.33 while the price-to-book (P/B) ratio stood at 6.51. The index had significant exposure to consumer discretionary sector at 31.49% followed by Financial Services at 20.21%.
Some of the largest stocks in the index include Bajaj Finance, Mahindra & Mahindra, Titan Company, and Bajaj Auto.
Recently Introduced Indices:
BSE Saatvik 100 Index launched on 19th June
Nifty 500 Ahimsa Index launched on 10th July
Why Has BSE Expanded Its Indices to Include Growth Factor Indices?
The new indices can be used as underlying indices for exchange traded funds, index funds, mutual funds, portfolio management schemes, and other passive funds by asset managers and institutional investors. This gives investors the opportunity to participate in the growth of companies captured by these indices.
It also provides BSE with an opportunity to capture a chunk of the passive investing space that has witnessed significant inflows in recent times. However, the commercial impact of the new indices rollout depends on how many asset managers will follow through on the proposal and how much money these passive products will accumulate under management.
