BSE launches India's first Saatvik Index to promote value-based investing

BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE, on Friday announced the launch of India's first Saatvik Index, the BSE Saatvik 100. The index is derived from the constituents of the BSE 500 Index that align with Saatvik principles, offering domestic investors a new avenue to invest in companies that adhere to ethical and value-based principles.

The word "Saatvik" signifies purity, responsibility, and ethical conduct. The launch comes at a time of growing interest in Environmental, Social, and Governance (ESG) investing, which focuses on companies that are not only driven by profits but also contribute positively to society and the environment.

Ashutosh Singh, Managing Director and Chief Executive Officer of BSE Index Services, said, "The launch of the BSE Saatvik 100 Index marks an important step in broadening the range of thematic indices available to investors seeking alignment between their investment decisions and value-based principles."

As capital markets continue to evolve, Singh said investor preferences are increasingly extending beyond traditional financial metrics to include ethical, cultural, and philosophy-driven considerations.

"The Index represents a distinctive addition to India's indexing landscape and provides market participants with a credible foundation for the development of passive, structured, and other investment products aligned with this philosophy," he added.

According to BSE, the index can be used for passive investment strategies such as exchange-traded funds (ETFs) and index funds. It can also serve as a benchmark for portfolio management services (PMS), mutual fund schemes, and investment portfolios.

Investors can now access a broader spectrum of market opportunities, further enriching their investment strategies through this latest addition to BSE's suite of indices.

BSE Index Services, formerly known as Asia Index, manages and publishes a range of indices, including the benchmark Sensex, for domestic and global investors.

Financials dominate the BSE Saatvik 100 Index

According to the exchange, the financial services sector has the highest weight in the BSE Saatvik 100 Index at 37.55%, making it the single-largest contributor to the index. It is followed by Consumer discretionary and Energy.

Other key sectors include commodities and industrials, followed by utilities and telecommunication. The remaining exposure is spread across services, fast-moving consumer goods, and healthcare.

Among individual stocks, HDFC Bank holds the largest weight in the index, followed by ICICI Bank and Reliance Industries, according to the exchange. Other major constituents include Infosys, State Bank of India, Axis Bank, Kotak Mahindra Bank, and Mahindra & Mahindra.

The composition indicates a strong tilt toward large-cap financial and diversified businesses within the newly launched thematic index.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.