How BSE’s Total Market Index will serve ETFs and mutual funds

The recently unveiled BSE Total Market Index is set to become a foundational benchmark for a range of passive investment products. By covering virtually the entire listed equity market – more than 98 percent of market‑capitalisation – the index offers a comprehensive yardstick for exchange‑traded funds and index funds.

Its methodology, which includes at least 1,000 stocks weighted by market‑cap, mirrors the broad dynamics of the Indian market. The index’s base value of 1,000 is anchored to a starting date of September 16, 2005, and it will be refreshed semi‑annually to keep pace with corporate actions and market shifts.

Administered by BSE Index Services Private Limited, the TMI is intended to grow proportionally with the Indian capital market, providing a reliable framework for portfolio‑management services, mutual‑fund schemes and institutional portfolio benchmarking. The exchange expects the new index to facilitate the launch of more diversified passive products, helping investors track the overall health of India’s equity market.