S&P BSE Utilities

India, the second largest country in terms of population, needs more basic amenities like water, electricity, and natural gas. This makes the utility sector one of the most important industries in the country. Currently, it contributes over INR 786 billion to the Indian GDP. Therefore, utilities are a crucial sector, and tracking their performance and growth can help determine the health of the economy and estimate the pace of development. 

The utilities sector includes companies that are involved in the production and distribution of basic infrastructural services. These companies provide basic amenities like electricity, natural gas, and water. It is an investment-intensive industry that focuses on improving the country’s infrastructural facilities. 

The first and the most prominent index of BSE is SENSEX, which tracks the performance of the top 30 companies in terms of market cap. Later, BSE introduced a number of indices that were classified on the basis of different factors. There are 11 sectoral indices that have been classified on the basis of the sector or industry they belong to. 

S&P BSE utilities are a part of the family of sectoral indices. This index tracks the price movement of the companies that are listed on the BSE AllCap and are classified as utility sector companies. The value of the index is determined by tracking the BSE utilities share price. It provides the investors with a reflection of how the country’s utility sector is performing. 

It is one of the recently launched indexes, which was launched on 25th Feb, 2022. The value of the index is calculated in real-time. In other words, the BSE utilities share prices keep fluctuating with the price movement in its constituent stocks. This index consists of 23 stocks and an average market cap of INR 537,193.24 million. The S&P BSE utilities index is reflected in both INR and USD. Moreover, 18th Sep, 2020 is considered the base year for calculating the index value. 

A free-float market capitalization method is used to calculate the share price. In simple terms, only the shares listed on the stock exchange and available to the public for trading are taken while calculating the index value, and the privately held shares are excluded. After calculating the float-adjusted market cap, the weights of the constituent stocks are adjusted as per the capped weights and rebalanced to arrive at the final index value.