There is important news for stock market investors and traders. BSE Index Services has launched a new index called the BSE All Derivative Stocks Index. This index is designed to track the performance of equity derivative stocks in India.
The index includes stocks from the BSE 500 that are actively traded in the derivatives segment. It reflects how derivative-eligible stocks are performing in the broader market.
Contents
Purpose and Use of the New Index
The BSE All Derivative Stocks Index can be used by investors to create passive investment products such as exchange-traded funds (ETFs) and index funds.
It can also serve as a benchmark for portfolio management services (PMS), factor-based fund schemes (FF schemes), and other investment portfolios.
According to Ashutosh Singh, Managing Director and CEO of BSE Index Services Private Limited, this index marks a major shift in how benchmarks are created.
By covering the entire derivatives-eligible equity universe, the index reflects changes in market depth, liquidity, and the growing maturity of India’s capital markets.
How Stocks Are Selected for the Index
Stocks in this index are selected from the BSE 500 universe based on their eligibility for derivatives trading. The weight of each stock is decided using a mix of float-adjusted market capitalization and momentum scoring.
To maintain diversification, the maximum weight of any single stock is capped at 10%, ensuring no stock dominates the index. The base value of the index is set at 1,000.
Index Reconstitution and Review Schedule
The index’s first value date is June 23, 2014. It is reconstituted every six months, specifically in June and December, to ensure it remains updated with market changes.
With this expanded range of BSE indices, investors can explore wider market opportunities and strengthen their investment strategies.
BSE’s Partnership with India Post
In December 2025, BSE signed a Memorandum of Understanding (MoU) with the Post Office. Under this agreement, mutual fund products will be distributed through the wide network of India Post.
This three-year agreement includes training selected employees and agents of the Department of Posts. Once certified, they will act as mutual fund distributors and provide investor services through BSE’s STAR Mutual Fund platform.
Market Applications and Investment Benefits
The BSE All Derivative Stocks Index offers several benefits to investors and market participants, including:
Passive investment options such as ETFs and index funds
Benchmarking services for PMS and mutual fund schemes
Broader market exposure through derivative-eligible stocks
BSE shares have shown strong performance. The stock has gained 4% in one month and over 8% in six months. Over the past year, it has delivered a return of 57% to investors.
The stock’s 52-week high is ₹3,030, while the 52-week low is ₹1,227.33. BSE’s market capitalization stands at ₹1.09 lakh crore.
BSE is a virtually debt-free company and has achieved a strong profit growth CAGR of 65.4% over the last five years.
It maintains a healthy dividend payout ratio of 41.1%. As of September 2025, FIIs hold 16.25% and DIIs hold 19.91% of the company’s shares.