Asia Index launches S&P BSE India Infrastructure Index

The S&P BSE India Infrastructure Index is designed to measure the performance of top 30 Indian companies involved in infrastructure and related operations that meet investability requirements
Due to growing demand from clients and investors in the country for a highly transparent and diversified infrastructure index, Asia Index Pvt. Ltd. has launched the S&P BSE India Infrastructure Index. The Index measures the performance of the leading 30 companies (determined by market capitalisation) from five distinct infrastructure sectors – energy, transportation, non-banking financial institutions (NBFIs), telecommunications, and utilities, drawn from the S&P BSE 500 Index.
Alka Banerjee, CEO, Asia Index Pvt. Ltd., commented, “Investors in India increasingly want an infrastructure index that is not only transparent and diversified but also includes NBFIs that earn revenue from infrastructure financing. Hence, we are very excited to launch the index.”
The said index is designed to serve as both a benchmark and an investable index. The sectors for the index are created by selecting relevant sub-industries from the Global Industry Classification Standard (GICS).  One of the key highlights of the index is inclusion of stocks from NBFIs, either categorised as an ‘Infrastructure Finance Company’ by Reserve Bank of India or having major revenue from infrastructure finance. The index follows a modified market capitalisation weighted scheme which aims for diversification. Stocks are selected and weighted to ensure that the index is investable. The weight of each infrastructure sector is capped at 30 per cent and individual stocks weight is capped at 10 per cent.

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