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

The BSE Energy Index represents companies involved in the energy sector and serves as a benchmark for investors willing to invest in the energy sector. The companies shall be included in the BSE All Cap Index for providing reliable data on the energy sector. The categories of the BSE Index shall be divided into 11 indicators. So, it gives the data for each industry to the investor for investing in the most reliable stock. The stocks of companies included in the BSE Energy Index are those which are involved in the manufacturing and distribution of renewable or non-renewable energy. Solar, wind, hydropower, and biogas are the primary sources of generating renewable energy; therefore, most companies produce renewable energy by utilising these green sources.

The non-renewable sector is widely utilised in the power industry for the production of coal, petroleum, natural gas, and other resources. The companies formed part of the BSE Power sector shall belong to the energy sector. The total no of constituents on the BSE Energy Index is 26. The ranking of these constituents shall be based on the market capitalisation method. The method for calculating the index value is different from the ranking method. 

The method of calculating the index value is based on capped market capitalisation.

The BSE Energy Index was launched in April 2015 to assess the performance of the energy sectors on the BSE Energy Index. The value shall be calculated in real-time based on both INR & USD. The BSE Energy Index is diversified across various sectors, including power generation, transmission, distribution, and equipment manufacturing, all of which are listed on the BSE.  

• The full market capitalisation of the BSE Energy Index is ₹3,292,758.51 crore, and the free-float market capitalisation is ₹1,42,099.84 crore. 
• The P/E Ratio of the BSE Energy Index is 11.75, the P/B Ratio is 1.85, and the dividend yield is 2.95.
• The BSE Energy Index is diversified across various sectors, including power generation, transmission, distribution, and equipment manufacturing, all of which are listed on the BSE.    
• The weightage of the top three sectors is 86.71%, 11.99%and 1.31%.
• The method of calculation is based on the free-float market capitalisation.
• It covers the Power generation, Transmission & distribution operators, and the manufacturing sectors.
• The number of constituents involved in the BSE Energy segments is 26.

• The weight of the companies listed on the BSE Energy Index shall not be more than 33%.
• The capped weight of the top 3 constituents must be 63%.
• If the eligibility as mentioned above is not met, then the weight is equally divided among the uncapped constituents, if the excess weight is present. 
• The stock must be a part of the Energy sector, and shall be listed on the BSE Energy Index.
• The trading frequency of the stock must be 90% of the trading days during the review period.
• The criteria for maintaining the liquidity of the stock shall be met, which is based on the average daily turnover and trading volumes.
• A minimum level of free-float market capitalisation must be met by ensuring an adequate number of shares are available for trading.
• Exclusion of the illiquid stocks and stocks that do not meet the criteria of the high trading volumes.

The method of calculation of the BSE Energy Index is based on the capped free-float market capitalisation.

The eligibility criteria must be met before calculating the BSE Energy Index, including that the weight of companies listed on the BSE Energy Index shall not exceed 33%, The capped weight of the top 3 constituents must be 63%, and If the eligibility as mentioned above is not met, then the weight is equally divided among the uncapped constituents, if the excess weight is present. 

First step is to determine the capped weights, then apply caps on their weights according to the eligibility, the third step is to redistribute the excess weight, and then the final step is to calculate the index value. 

 The formula for the BSE Energy Index is: Total Free-Float Market Capitalisation * Base Index Value / Base Market Capitalisation.

Calculation for the free-float market capitalisation is done as Market Capitalisation* Free Float Factor.

• The BSE Energy Index is used to track the performance of India’s energy sector, such as oil, power, and renewables in one place.
• It provides exposure to the investors due to the diversified sectors. Those who are willing to invest in the energy sector can invest by analysing them. 
• The companies involved in the BSE Energy Index are financially strong and contribute to the economic growth, which has a positive impact on the decision of the investors.

• The BSE Energy Index is restricted to the energy sector only. It reduces the scope of diversification for the investors.
• The BSE Energy sector is highly volatile, and changes in market prices frequently affect the industry.  
• While the Index includes renewable players, it is currently dominated by traditional oil & gas; this may be impactful for valuations, and the index may be less balanced. 

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 Energy Index fund is not available, then the investors can consider the mutual funds or ETFs. They also give direct exposure to the investors of the BSE Energy Index.  

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

The BSE Energy Index represents companies involved in the energy sector and serves as a benchmark for investors willing to invest in the energy sector. The companies shall be included in the BSE All Cap Index for providing reliable data on the energy sector. The non-renewable sector is widely utilised in the power industry for the production of coal, petroleum, natural gas, and other resources. The companies formed part of the BSE Power sector shall belong to the energy sector. The total no of constituents on the BSE Energy Index is 26. 

The BSE Energy Index is diversified across various sectors, including power generation, transmission, distribution, and equipment manufacturing, all of which are listed on the BSE. The criteria for maintaining the liquidity of the stock shall be met, which is based on the average daily turnover and trading volumes. While the Index includes renewable players, it is currently dominated by traditional oil & gas; this may be impactful for valuations, and the index may be less balanced.