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

The BSE Financial Services represents the companies involved in the BSE AllCap and classified under the members of the finance sector. The BSE Finance Index serves as a benchmark for tracking companies in the finance sector. The finance sector of the economy plays a crucial role in the country's development and growth, and analysing its performance is essential, as it is considered the backbone of the economy. Some industries shall be included in the BSE Finance Index, such as Banks, Insurance, and many more that are included in the financial services.

The constituents included in the BSE Finance Index are not more than 127 stocks, and must be selected from the BSE AllCap Index. The BSE Finance Index was launched on 25th February 2022, with the base date of 18th September and the base value of 1000. The value shall be calculated based on the capped free-float market capitalisation. The criteria for reconstitution of the BSE Finance Index shall be based on semi-annual.

BSE Financial Services Index is diversified across various sectors, including Information Technology, Transport Services, and others. The joint venture of BSE Ltd, which was set up under the Asia Index Private Ltd, was made by the committee of the BSE Finance Index. The calculation of the BSE Finance Index is based on two currencies, namely INR and USD, which are impacted by the foreign exchange rates applied to the Index.  

• The full market capitalisation of the BSE Finance Index is ₹ 10,295,639.06 crore, and the free-float market capitalisation is ₹ 5,810,085 crore.
• The P/E Ratio of the BSE Finance Index is 17.46, the P/B Ratio is 2.85, and the dividend yield is 0.95.
• BSE Financial Services Index is diversified across various sectors, including Information Technology, Transport Services, and others. 
• The weightage of the top three sectors of the BSE Financial Services Index is 98.21%, 1.77%, and 0.02%.
• The calculation method for the BSE Financial Services Index is based on free-float market capitalisation.    
• The BSE Financial Services Index provides potential growth opportunities to investors.
• The ranking criteria for the selection of the BSE Financial Services Index shall be based on the free-float market capitalisation.

• The company must be incorporated in India, and the stocks must be listed on the Bombay Stock Exchange.
• The constituents must form a part of the financial sector, and also be from the BSE AllCap Index.
•  The impact of the costs for the past six months shall be 0.5% or less, and shall not be more than 0.5%.
• The trading frequency of the stocks shall be more than 80%, and they must have a listing history on the stock exchange for the last six months.
• The criteria for the turnover ratio shall be at least 5%.
• The companies with IPOs shall have a history of at least one month for eligibility for the 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.
• Stocks with a market capitalisation below the average daily total of INR 0.5 billion shall not be included.

For calculating the BSE Finance Index, the stocks must meet the eligibility criteria, and the calculation is based on the capped free-float market capitalisation. The eligibility criteria of the stocks are that the stocks must belong to the finance sector and shall be listed on the BSE. The listing history of the stocks, at least for the past six months, and the weight of the heavy company shall be proportionally divided among the weights of the other companies. 

The weight of the company’s Index shall not exceed 33%. The weightage of the top 3 companies shall not exceed 63%. 

Formula for the BSE Finance Index = Price* Shares* IWF(Float Factor)

Where, 

AWFi = Adjusted Stock Market Value Factor based on the rebalancing date.

Divisor = Index Market Value after rebalancing

Capped Free-Float Market Cap Weight 

Wi = Capped FFMC/ sum of capped FFMC 

Where,

Capped FFMCi = Adjusted free-float market cap after applying the cap 

Index Value Calculation

Index Level = Index Market Value/ Divisor 

The value of the divisor shall be adjusted to maintain the rebalance of the capping.

• The BSE Finance Index acts as a benchmark for tracking the performance of the finance sector, such as banks, NBFCs, and Housing Finance.
• The index is calculated using the free-float market capitalisation, which provides investors with transparency and actual investable value.
• The stocks in the BSE Finance Index are highly liquid and have a composition of large financial companies, making them suitable for the replication of funds. 

• The financial sector is susceptible to changes in interest rates, RBI Policies, inflation, and economic cycles, which creates the high volatility of the stocks.
• Banking and Finance sectors are highly dependent on government policies, so changes in the rules and regulations made by the government can affect the BSE Finance Index.  
• The interest rates, banking rates, and currency fluctuations influence the BSE Finance Index, which negatively affects the decisions of investors.  

The investors should research the high-value stocks in the diversified sector of the BSE Finance Index; the companies with strong financials and high profitability in the future can provide long-term growth and stability. Investors should open a demat account for trading and also select a broker to choose the best BSE Finance stocks, which offer high potential for future growth. Or, when investing in the BSE Finance Stocks, the completion of KYC is necessary, which enables investors to choose the best stocks in the BSE Finance Stocks. On the platform of the brokerage, Investors can assess the Mutual Funds or ETFs. The investors can track the performance of the BSE Finance Index Stocks through their demat account. 

The BSE Financial Services represents the companies involved in the BSE AllCap and classified under the members of the finance sector. The BSE Finance Index serves as a benchmark for tracking companies in the finance sector. The finance sector of the economy plays a crucial role in the country's development and growth, and analysing its performance is essential, as it is considered the backbone of the economy. BSE Financial Services Index is diversified across various sectors, including Information Technology, Transport Services, and others. The joint venture of BSE Ltd, which was set up under the Asia Index Private Ltd, was made by the committee of the BSE Finance Index. 

The trading frequency of the stocks shall be more than 80%, and they must have a listing history on the stock exchange for the last six months. The ranking criteria for the selection of the BSE Financial Services Index shall be based on the free-float market capitalisation. For calculating the BSE Finance Index, the stocks must meet the eligibility criteria, and the calculation is based on the capped free-float market capitalisation. The eligibility criteria of the stocks are that the stocks must belong to the finance sector and shall be listed on the BSE.