India’s capital markets have added a new thematic benchmark with the introduction of the BSE Saatvik 100 Index, a first-of-its-kind offering designed for investors seeking to align financial goals with ethical values. Announced by BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE, the new index draws its constituents from the broader BSE 500 Index. The selected companies are screened for adherence to Saatvik principles, which emphasise ethical conduct, responsibility, and purity in business practices.
The launch reflects a growing shift among investors who increasingly consider non-financial factors when making investment decisions. Similar to the rise of Environmental, Social, and Governance (ESG) investing, the Saatvik Index seeks to provide exposure to companies that align with value-based investing philosophies while maintaining strong market representation.
Commenting on the launch, Ashutosh Singh, Managing Director and Chief Executive Officer of said, “The launch of the BSE Saatvik 100 Index marks an important step in broadening the range of thematic indices available to investors seeking alignment between their investment decisions and value-based principles.”
He further noted that investor preferences are evolving beyond conventional measures such as profitability and growth. Ethical considerations, cultural values, and philosophical beliefs are increasingly influencing portfolio construction and investment choices.
“The Index represents a distinctive addition to India’s indexing landscape and provides market participants with a credible foundation for the development of passive, structured, and other investment products aligned with this philosophy,” he added.
Potential Uses For Investors And Fund Managers
According to BSE, the newly introduced benchmark can serve multiple purposes within the investment ecosystem. Asset managers may use it as the foundation for exchange-traded funds (ETFs) and index funds, while portfolio managers can adopt it as a benchmark for portfolio management services (PMS) and other investment products.
The index also expands the menu of thematic investment options available to retail and institutional participants looking to diversify their strategies with a values-driven approach.
BSE Index Services, previously known as Asia Index, currently manages and publishes several prominent indices, including the benchmark Sensex, serving both domestic and international investors.
Financial Stocks Lead The Index Composition
The sector allocation of the BSE Saatvik 100 Index is heavily influenced by financial services, which account for 37.55 per cent of the index weight, making it the largest sector represented.
Consumer discretionary and energy companies occupy the next largest positions. Additional exposure comes from commodities, industrials, utilities, telecommunications, services, fast-moving consumer goods (FMCG), and healthcare businesses.
Among individual constituents, HDFC Bank commands the highest weightage in the index. It is followed by ICICI Bank and Reliance Industries. Other significant names include Infosys, State Bank of India, Axis Bank, Kotak Mahindra Bank, and Mahindra & Mahindra.