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BSE Index Services Pvt. Ltd. updates the methodology and names for six BSE sector indices. The indices now derive from the BSE 500 eligible universe based on India Industry Classification. The new methodology mandates quarterly rebalancing and applies specific weight caps of 33% for single constituents and 63% for the top three constituents. The index names change to include the prefix BSE 500. These changes apply to the BSE Auto, BSE Oil & Gas, BSE Metal, BSE Capital Goods, BSE Consumer Durables, and BSE Realty indices. The updates take effect on November 13, 2026.
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| Notice No. | 20261112-13 |
| Notice Date | 12 Nov 2026 |
| Category | Index |
| Segment | Equity |
| Department | Index Cell |
| Subject | Change in Name and Methodology of BSE Sector Indices |
| Attachments | No Attachment |
MUMBAI, NOVEMBER 12, 2026: BSE Index Services Pvt. Ltd. announces the following change in methodology and change in name for below mentioned BSE indices. The changes will be effective Friday, November 13, 2026.
| Impacted BSE Indices | Existing Methodology | New Methodology |
|---|---|---|
| BSE Auto | ||
| BSE Oil & Gas | ||
| BSE Metal | ||
| BSE Capital Goods | ||
| BSE Consumer Durables | ||
| BSE Realty | Market Coverage - Eligible stocks are selected based on their average float-adjusted market capitalization rank, until a minimum market coverage of 90% of the average float-adjusted market capitalization per sector is achieved. |
Liquidity - Companies must have a minimum trading frequency of 90% in the preceding six months.
Buffers - A buffer of 2% both for inclusion and exclusion in the index is considered to minimize the turnover. For example, a non-constituent is included in the index only if it falls within 88% coverage and an existing index constituent is not excluded unless it falls above 92% coverage. However, the buffer criterion is applied only after the minimum 90% float-adjusted market capitalization coverage is satisfied. To maintain a minimum count of 10 in the index (except BANKEX wherein a minimum count of 14 is maintained and preference would be given to derivative stocks), constituents are retained, and non-constituents are included based on their average float-adjusted market capitalization rank.
Constituent Weightings With the exception of the BSE OIL & GAS the constituents of each of the BSE Sector Indices are weighted by float-adjusted market capitalization.
The BSE OIL & GAS employ a non-market capitalization weighting scheme for corporate action. At each quarterly share update, index constituents are weighted based on float-adjusted market capitalization, subject to a 20% weight cap. Any excess weight is distributed proportionally across the remaining stocks in the index. | Eligible Universe - The index is derived from the constituents of the BSE 500. Stocks which are classified under the respective Sector Level (as per appendix 1) as per India Industry Classification would form a part of Eligible Universe.
Index Construction All Stocks forming part of eligible universe would be selected in the respective Index.
Additions and Deletions Any company included in the BSE 500 in between semi-annual rebalancing and classified under the respective Sector Level as per India Industry Classification would form a part of the Index.
Further, if the classification of an existing constituent, based on the common India Industry Classification Structure changes between semi-annual rebalancing, such that the company becomes ineligible, the company is deleted from the respective sector Index and is added to the respective new sector index at the quarterly share update.
Any addition to or deletion from the index will trigger an ad-hoc rebalancing to reweigh all individual stock caps
Constituent Weightings Index constituents are weighted based on their float-adjusted market capitalization, subject to the following capping constraints which are applied quarterly, effective as of market open on the Monday following the third Friday of March, June, September, and December, respectively.
If the above constraints are breached, any excess weight is proportionately redistributed to all uncapped stocks. As part of the redistribution, the ranking of stocks based on final weights will remain in line with their rankings based on free-float market capitalisation. |
| Existing Index Name | New Index Name |
|---|---|
| BSE Auto | BSE 500 Auto |
| BSE Oil & Gas | BSE 500 Oil & Gas |
| BSE Metal | BSE 500 Metal |
| BSE Capital Goods | BSE 500 Capital Goods |
| BSE Consumer Durables | BSE 500 Consumer Durables |
| BSE Realty | BSE 500 Realty |
| Index | Sector |
|---|---|
| BSE 500 Auto | Automobile and Auto Components |
| BSE 500 Oil & Gas | Oil, Gas & Consumable Fuels |
| BSE 500 Metal | Metals & Mining |
| BSE 500 Capital Goods | Capital Goods |
| BSE 500 Consumer Durables | Consumer Durables |
| BSE 500 Realty | Realty |
The changes has been included in tonight’s Beginning-of-Day files (BOD).
For any additional queries, clients are requested to reach out to bseindex@bseindia.com
BSE Index Services Private Ltd (formerly Asia Index Pvt. Ltd.) is a wholly owned subsidiary of BSE Ltd, Asia’s oldest stock exchange and home to the iconic SENSEX index – a leading indicator of Indian equity market performance. BSE Index Services Pvt. Ltd aims to provide a full array of indices to global / domestic investors and calculates, publishes, and maintains a diverse family of indices.
BSE is Asia’s oldest exchange and the world’s largest exchange in terms of the number of listed companies. BSE has been playing a prominent role in developing the Indian capital market and has successfully offered an efficient capital raising platform to many companies in India. The benchmark index of BSE, Sensex, is tracked by investors across the globe is also considered as a barometer for the growth of Indian Economy. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, stock lending and borrowing.
Index Services
November 12, 2026
