Asia Index launches S&P BSE India Infrastructure Index

Asia Index Pvt Ltd announced the launch of the S&P BSE India Infrastructure Index. The Index measures the performance of the leading 30 companies, determined by market capitalization, from five major infrastructure sectors – energy, transportation, non-banking financial institutions (NBFIs), telecommunications, and utilities, drawn from the S&P BSE 500 Index.
Alka Banerjee, CEO of Asia Index commented, We are very excited to launch the S&P BSE India Infrastructure Index. Investors in India increasingly want an infrastructure index that is not only transparent and diversified but also includes non-banking financial institutions that earn revenue from infrastructure financing. This, combined with India’s imminent announcement on its blueprint for infrastructure development, potentially means that interest in infrastructure could remain strong among Indian investors for the next several years.”
The S&P BSE India Infrastructure Index is designed to serve as both a benchmark and an investable index. The sectors for the S&P BSE Infrastructure 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 S&P BSE India Infrastructure 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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