BSE INDEX BSE500 (BSE500) live share price today at BSE

The BSE 500 Index refers to the constituents involved in the primary industries of the Indian Economy. It covers a vast 500 sectors in the stock exchange, mainly belonging to the BSE Ltd. It represents the top 500 constituents listed on the BSE Exchange and is involved in the coverage of the top industries engaged in the Indian Economy. The BSE 500 Index is considered the extension of the BSE 200 Index and tracks the performance of the top 500 companies listed on the BSE. 

The ranking criteria for the selection of the top 500 companies are based on the average trading volumes and the free-float capitalisation method. The BSE 500 Index represents companies listed on the stock exchange, whose shares are freely tradable, and the total market capitalisation of 93% covered by the BSE 500, which is more suitable for the BSE Index. The more exhaustive coverage of the companies shall be included in the BSE 500 Index, and track the performance of those companies.

The BSE 500 Index was launched in August 1999. The method of free-float capitalisation cap came into effect in August 2005. It provides a reliable and trustworthy approach for calculating the Index, and it almost covers the 20 major sectors of the Indian Economy, because the coverage of the BSE 500 Index is extensive, so it provides deep and diversified information on the various sectors, which enables investors an opportunity for high growth and stability.

• The full market capitalisation of the BSE 500 Index is ₹ 39,918,100 crore, and the free-float market capitalisation is ₹ 18,781,461 crore.
• The P/E Ratio of the BSE 500 Index is 24.32, the P/B ratio is 4.18, and the dividend yield is 1.14%.
• The BSE 500 Index is diversified into various sectors, such as Financial Services, Consumer Discretionary, Industrials, Commodities, Information Technology, Energy, Fast Moving Consumer Goods, Healthcare, and many more.
• The weightage of the top three sectors is 30.28%, 16.49%, and 16.42%.
• The rebalancing criteria for the BSE 500 Index are applied twice every year in June and December.
• The total number of stocks in the BSE 500 are 20, which covers almost all major sectors of the industry.’
•  The calculation is based on the total market capitalisation method, which helps in providing reliable data for the BSE 500 Index.
• Only freely tradable shares shall be taken into consideration for the calculation.

• Companies must form a part of the BSE AllCap Index for the previous six months.
• The trading value of the BSE 500 shall not be less than INR 1 billion.
• The trading value of the stocks for the last six months shall not be less than 80% of the trading sessions.
• Exclusion of the companies which are not follow the rules and regulations given by the SEBI, and stocks are highly illiquid.
• The focus of the sector of the company shall be different from the Indian Equity Market and must be well-positioned and diversified into various sectors.
•  Companies with IPOs must have a history of at least one month to be eligible for inclusion.
• Companies that follow the scheme of arrangement, debt restructuring, and many more shall have a history of listing for at least one month.
•  Exclusion of the companies, if they have undergone the process of mergers, delisting, takeovers, suspension, and many more.

The company shall follow the eligibility criteria for the calculation of the BSE 500 Index, then use the free-float market capitalisation method to calculate the value of the index. 

The decision for calculating the coefficients of variation of the BSE 200 was made based on the base year. The consideration of the value for the base year is taken from the lowest base value of the successive years. 

Firstly, calculate the free-float market capitalisation and then adjust it with the base value of the index, using the sum of the figures of all 500 companies. The year of the base value, which is taken into consideration, is 1988-99, and the base value is 1000.

Formula of the BSE 500 Index =Total free-float market capitalisation* Index Value for the Base Year/ Market Capitalisation for the Base Year

• The BSE 500 Index offers broad market representation, mostly covering 93-95% of the total market capitalisation on BSE. 
• The BSE 500 Index provides an opportunity for exposure to investors because the index covers a broad sector representation of the industry in the Indian Economy.
• It acts as a long-term investment tool for institutional investors and represents a broader approach than the Sensex or BSE.
• The BSE 500 Index serves as a benchmark for investors willing to invest in the broader market segment.

• Over-diversification of any industry is not suitable for any index, and the BSE 500 Index contains the top 500 companies, which leads to confusion among investors when investing.
• The tracking of 500 companies is quite tricky and leads to less clarity compared to smaller indices like the Sensex or the BSE.
• The data in the BSE 500 are extensive, so fund managers and investors often prefer it as a benchmarking tool.
• The BSE 500 Index may face higher costs and tracking errors when it tries to replicate the BSE 500 Index, and it is hard to manage the data of 500 stocks.

Investors can check availability on AMC websites, NSE/BSE sites, or apps, which provide a reliable broking facility, enabling them to select the most profitable and highly growing stocks for their long-term investments. A demat account is necessary if investors want to buy ETFs or constituent stocks, but it is not required if they want to invest through mutual funds and SIPs. If the availability of a direct BSE 500 Index fund is not available, then the investors can consider the mutual funds or ETFs. They also provide direct exposure to investors in the BSE 500 Index.  

Investors can replicate the index by purchasing the major stocks that are included in the BSE 500 Index. The chance of direct control and the advantage of capital and portfolio management are also necessary.

The BSE 500 Index refers to the constituents involved in the primary industries of the Indian Economy. It covers a vast 500 sectors in the stock exchange, mainly belonging to the BSE Ltd. It represents the top 500 constituents listed on the BSE Exchange and is involved in the coverage of the top industries engaged in the Indian Economy. The more exhaustive coverage of the companies shall be included in the BSE 500 Index, and track the performance of those companies. The BSE 500 Index represents companies listed on the stock exchange, whose shares are freely tradable, and the total market capitalisation of 93% covered by the BSE 500, which is more suitable for the BSE Index.

The focus of the sector of the company shall be different from the Indian Equity Market and must be well-positioned and diversified into various sectors. The rebalancing criteria for the BSE 500 Index are applied twice every year in June and December. The BSE 500 Index serves as a benchmark for investors willing to invest in the broader market segment. The BSE 500 Index is diversified into various sectors, such as Financial Services, Consumer Discretionary, Industrials, Commodities, Information Technology, Energy, Fast Moving Consumer Goods, Healthcare, and many more.