BSE Small-Cap

The S&P BSE Small Cap is a stock market index representing the performance of small-cap companies listed on India’s Bombay Stock Exchange (BSE). It is part of the S&P BSE suite of indices, which includes various indices reflecting different segments of the Indian stock market.

The S&P BSE Small-Cap constitutes the stocks of small-cap companies as per market capitalisation. As of January 2024, the index components include stocks of these prominent companies:

For index calculation, the index committee chooses a set of small-cap stocks based on certain criteria, such as market capitalisation, liquidity, and other factors. For each selected stock, the market capitalisation is calculated by multiplying its present market price with the number of outstanding shares. The index usually considers only the free float market capitalisation, which is the portion of shares available for trading in the market. The index value is then calculated by aggregating the market capitalisations of all the constituent stocks.

The S&P BSE SmallCap consists of about 962 different companies across multiple sectors and industries. Here’s a quick look at the top 10 companies in terms of their weight in the index. 

• Tata Chemicals 
• APL Apollo Tubes
• Navin Fluorine International
• Gujarat Fluorochemicals
• Atul 
• Dixon Technologies (India)
• Fortis Healthcare
• Phoenix Mills
• Coforge
• City Union Bank

The weight of a stock in the index is arrived at by its market capitalisation relative to the total market capitalisation of all the stocks in the index.

No - F&O trading is not allowed in BSE Smallcap index.

The first step in selecting stocks involves choosing companies within the market capitalisation range as set by the exchange. After this, further criteria, such as trading volume, financial performance, liquidity, etc., are applied to select companies. After this, companies are shortlisted based on their financial health stability, corporate governance practices, management quality, etc, after which the selection process is completed, and the stocks get listed. They are evaluated periodically to ensure their accuracy.

The closing price of the S&P BSE Small Cap index is determined based on the closing prices (weighted average) of its constituent stocks. Note that the closing price is not the same all day and varies depending on market activities.

While direct trading of the S&P BSE Small Cap units is not possible, you can invest in individual stocks from the index by opening a demat account or invest in an index fund which replicates the composition and performance of BSE Smallcap index. 
​​​​​​