BSE Launches Saatvik 100 Index: A New Ethical Benchmark for Investors

Introduction of the BSE Saatvik 100 Index

The BSE has unveiled the Saatvik 100 Index, a pioneering thematic benchmark aimed at investors who wish to align their financial objectives with ethical values. This initiative, introduced by BSE Index Services Pvt. Ltd., a subsidiary of BSE, selects its constituents from the broader BSE 500 Index. Companies included in this index are evaluated based on their adherence to Saatvik principles, which prioritize ethical behavior, accountability, and integrity in business operations.

This launch signifies a notable trend among investors who are increasingly factoring in non-financial elements when making investment choices. Similar to the growing popularity of Environmental, Social, and Governance (ESG) investing, the Saatvik Index aims to offer exposure to firms that resonate with value-driven investment philosophies while ensuring robust market representation.

Ashutosh Singh, the Managing Director and CEO of BSE Index Services, remarked on the significance of this launch, stating, "The introduction of the BSE Saatvik 100 Index is a crucial advancement in expanding the variety of thematic indices for investors who seek to align their investment choices with value-based principles." He emphasized that investor preferences are shifting beyond traditional metrics like profitability and growth, with ethical considerations and cultural values playing a more prominent role in portfolio development.

Investor and Fund Manager Applications

BSE indicates that the new benchmark can fulfill various roles within the investment landscape. Asset managers might utilize it as a basis for exchange-traded funds (ETFs) and index funds, while portfolio managers can leverage it as a benchmark for portfolio management services (PMS) and other investment offerings. This index broadens the array of thematic investment choices available to both retail and institutional investors looking to diversify their strategies with a values-oriented approach.

BSE Index Services, formerly known as Asia Index, currently oversees and publishes several key indices, including the benchmark Sensex, catering to both domestic and international investors.

Sector Composition of the BSE Saatvik 100 Index

The BSE Saatvik 100 Index is predominantly influenced by the financial services sector, which constitutes 37.55% of the index's total weight, making it the most significant sector represented. Following this, consumer discretionary and energy sectors hold the next largest shares. Additional contributions come from commodities, industrials, utilities, telecommunications, services, fast-moving consumer goods (FMCG), and healthcare sectors.

Among the individual companies, HDFC Bank holds the highest weight in the index, followed by ICICI Bank and Reliance Industries. Other notable companies include Infosys, State Bank of India, Axis Bank, Kotak Mahindra Bank, and Mahindra & Mahindra.