New Delhi, Jun 24 (PTI) Asia Index, a BSE and S&P Dow Jones Indices joint venture, today launched an index to measure the performance of 30 leading manufacturing and production companies.
The new index--S&P BSE India Manufacturing Index--is launched at a time when manufacturing sector is expecting a big boost from the government's 'Make in India' initiative.
The index is a measure for production and manufacturing activities in the country. It would provide liquid and investable exposure to India's top 30 manufacturing and production companies.
"The manufacturing sector is one of the key indicators of growth of the Indian economy," Asia Index Private Limited CEO Alka Banerjee said.
"The new index is diversified and investable, so it can serve as the basis for the creation of low cost investable products such as ETFs and index funds tracking the index," she added.
The constituents are selected from the S&P BSE Large MidCap index. Stocks in the index must have a listing history of at least six months.
The maximum weight of the sector is capped at 30 per cent and the maximum weight of an individual stock is capped at 10 per cent.
The S&P BSE India manufacturing index is reconstituted semi-annually, in March and September. The index values are available in Indian Rupees and United States Dollar.
"We are excited to launch the S&P BSE India manufacturing index at a time when manufacturing sector in India has renewed interest among investors locally as well as globally.
"With the government's renewed focus on increasing manufacturing in India, S&P BSE India manufacturing index will aid investors with a better tool to gauge the manufacturing and production activities in the country," BSE Managing Director and Chief Executive Ashishkumar Chauhan said.
Last month, Asia Index had launched S&P BSE India infrastructure index.