BSE launches hospitals index to track healthcare sector

BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE, on Friday announced the launch of the BSE Hospitals Index, a new sectoral index designed to track the performance of hospital stocks within the healthcare industry.

The index, derived from constituents of the BSE 1000 and weighted by free-float market capitalization, carries a base value of 1,000 with the first value date of June 19, 2017. It will be reconstituted semi-annually in June and December.

According to BSE, the index will serve multiple purposes, including running passive investment strategies such as ETFs and index funds, as well as benchmarking PMS strategies, mutual fund schemes, and institutional portfolios. With the launch, investors gain a new tool to measure and participate in the growth of India’s hospital sector, expanding the suite of sectoral indices offered by Asia’s oldest stock exchange.

The index will have 15 constituents and it will be reconstituted semi-annually.

The total returns (TR) over a 1-year period is 25.54% while 21.83% since inception.

The top 10 constituents by weightage include:

1) Fortis Healthcare - 20.91%
2) Max Healthcare Institute - 19.77%
3) Apollo Hospitals Enterprises - 19.52%
4) Krishna Institute of Medical Sciences (KIMS) - 8.67%
5) Aster DM Healthcare - 7.09%
6) Narayana Hrudayalaya - 5.94%
7) Global Health (Medanta) - 5.56%
8) Rainbow Children's Medicare - 3.43%
9) Jupiter Life Line Hospitals - 2.89%
10) HealthCare Global Enterprises - 1.70%

"This index is ideal for asset managers to run passive strategies on and use it as relevant benchmark for active strategies. Also, for investors taking an exposure through ETFs, Index Funds or other active investments linked to the index," a BSE press release said.

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