BSE unveils mid-cap, small-cap indices

The Bombay Stock Exchange (BSE) has introduced two new indices called BSE Mid-Cap and BSE Small-Cap. These indices will track the performance of companies with relatively small market capitalisation and would exclusively represent mid-and- small-cap companies listed on the BSE.

Though the BSE-500 Index is considered to be a BSE composite index representing more than 93 per cent of listed firms in terms of market capitalisation, the need for a separate indicator to capture the trend in the specific class of companies (with lower market capitalisation) was felt, said a BSE press release.

These indices would be calculated and disseminated on a real time basis on the BSE's Bombay Online Trading System terminal from April 11, 2005.

BSE officials said BSE has launched various indices as per best international practices keeping in mind investors' interest and utility.

BSE pioneered the concept of free-float in indexing by first launching the BSE TECk Index, BSE Bankex and subsequently shifting Sensex - a barometer of Indian capital market - to a free-float methodology followed by the launch of sectoral indices based on the same methodology, the release added.

The BSE Mid-Cap Index will have 231 companies representing 15 per cent of BSE's eligible universe. The highest average market cap is Rs 2,476 crore and the lowest Rs 418 Crore. The total market capitalisation (average) of the Mid-Cap Index is Rs 2,28,315 crore.

The BSE Small-Cap Index has 425 companies representing 5 per cent of BSE's eligible universe. The highest average market capitalisation is Rs 417 crore and the lowest is Rs 53 crore.

The total market capitalisation (average) of the small-cap index is Rs 76,750 crore.