S&P BSE 100 LargeCap TMC Index

What is BSE 100 LargeCap TMC?

BSE 100 LargeCap TMC is a broad-based index on the Bombay Stock Exchange (BSE) which captures the performance of the most liquid large cap companies from the S&P BSE 500 index based on total market capitalisation (TMC). It is a diversified index of 100 stocks that span 17 sectors including Finance, IT, Oil & Gas, FMCG, Transport Equipment, Healthcare, Capital Goods, Housing Related, Chemical & Petrochemical, Metal, Metal Products & Mining, Power, Consumer Durables, Telecom, Agriculture, Transport Services, Utilities, and Tourism.

This S&P BSE 100 LargeCap TMC index was launched on July 9, 2018, with the first value date as December 16, 2005, and with base value of 1000. Since its inception, S&P BSE 100 LargeCap TMC share price has breached the levels of 6,000 at ~20.45x P/E multiples. The BSE 100 LargeCap TMC index is calculated at the end of the day and not on a real-time basis.

BSE 100 LargeCap TMC index is reconstituted semi-annually in the months of June and December. It has an index variant in the form of S&P BSE 100 LargeCap TMC index TR.

S&P BSE 100 LargeCap TMC index is managed and governed by S&P BSE Index Committee set up under Asia Index Private Ltd, which is a joint venture of S&P and BSE Ltd. The BSE 100 LargeCap TMC index is calculated in two currencies: INR and US$; for US$, spot foreign exchange rates are applied from Refinitiv’s data.

How is BSE 100 LargeCap TMC calculated? How are stocks selected for inclusion in the BSE 100 LargeCap TMC index?

S&P BSE 100 LargeCap TMC share price is computed by weighting its 100 stocks based on free-float market capitalisation, using the divisor methodology of the S&P Dow Jones equity indices.

The securities must fulfil the following eligibility criteria to be included in the BSE 100 LargeCap TMC index:

1. Should be domiciled in India and listed on the Bombay Stock Exchange.
2. Should belong to the S&P BSE 500 index.
3. Should include the top 100 stocks ranked by total market capitalisation, subject to a 20% buffer on the stock’s rank.
4. Should include all the common shares and shares with differential voting rights (DVRs) of the company. This has raised the current number of constituents to 101 while maintaining the number of companies at 100.
5. Should have 5 or fewer non-trading days in the last 6-month period.
6. Should have an annualised traded value of at least Rs. 10 billion. For current constituents, this value should be at least Rs. 8 billion.
7. Companies ranked within top 80 based on average daily total market capitalisation value over the last 6 months period data will be compulsorily included.
8. The remaining 20 stocks shall be selected from the existing companies ranging between 81-120, by order of the highest rank.
9. The individual float factor of a stock cannot exceed 5% of the index if it is not linked to derivatives trading.
10. The aggregate float weight of all the stocks that are not linked to derivatives trading cannot exceed 10% of the index.
11. Companies that have a listing history of less than 6 months, will be assessed for eligibility on the basis of data available since their listing date.
12. Companies that have undergone a scheme of arrangement, namely spin-offs, capital restructuring etc., will be assessed for inclusion based on data available since the scheme went into effect.

The index value is calculated as follows –

Index value = Index Market Value / Divisor

Where,

Index Market Value = Price * Shares * IWF (Float Factor) *Fx rate

Divisor = Market Value / Index Value

The S&P BSE 100 LargeCap TMC index is reconstituted semi-annually in June and December, with the last trading day of April and October being the reference dates.