The BSE Bankex is the Bombay Stock Exchange index representing the banking sector. It was launched in June 2003 and includes only those stocks that account for over 90% of the market capitalization of all banking sector stocks on the BSE.
The index is reviewed periodically to ensure it accurately represents the current state of the banking industry. Let’s compare this index with other indices of the BSE.
Comparing BSE Bankex with Other BSE Indices
BSE Bankex share price has increased by 13% with a 6 months high and low between 52,245 – 58,933.70. Here you can see a complete comparison with other BSE indexes.
1. BSE IT Index
As the name implies, this BSE index tracks the performance of the Indian information technology sector. Some of the key stocks in this index include Zensar Technologies Ltd., Wipro Ltd, Nelco Ltd, and Tata Elxsi Ltd.
This index’s one-year change is 36%, much better than the average of BSE Bankex companies. Its 52-week low and high range is between 30,586 and 41,731.
2. BSE Quality Index
This index tracks the performance of high-quality stocks listed on the BSE. It is a part of the S&P BSE LargeMidCap space. The stocks in this index are chosen based on three key financial metrics: return on equity (ROE), accruals ratio, and financial leverage ratio.
The constituents of this index include FMCG, Capital Goods, Information Technology, Healthcare, and Oil & Gas, among others.
This index’s one-year change is 41.99%, outperforming the Bankex. Its 52-week range is 1205.70 – 1760.74.
3. BSE GREENEX
This index promotes environmentally sustainable investment. Launched on February 22, 2012, the index tracks the performance of the top 25 green companies from the BSE 100. These companies are selected based on their greenhouse gas (GHG) emissions, market capitalization, and liquidity.
This index’s one-year change is 50%, which is much better than that of Bankex. Its 52-week low and high range is between 5,150 and 7,737.
4. BSE CPSE
The BSE CPSE Index tracks the performance of Central Public Sector Enterprises (CPSEs) listed on the BSE. CPSEs are companies where the Central Government holds a majority stake of 51% or more.
The one-year return of this index is 117%, and the 52-week low and high are 2,140 and 4,636, respectively.
5. S&P BSE ALLCAP
The S&P BSE ALLCAP Index is a broad-based index. It has all major company sizes, including the S&P BSE LargeCap, MidCap, and SmallCap indices. This comprehensive index is rules-based and has been fully float-adjusted since its inception.
In this index, the finance sector has the largest weight at 27.70%, followed by the information technology, capital goods, and oil and gas sectors.
This index has outperformed Bankex by generating 39% returns in one year. The 52-week low and high are 7,827 and 10,895 respectively.
6. S&P BSE BHARAT 22 INDEX
This equity index tracks the performance of 22 select companies that the Central Government of India has disinvested. In the last one year, the index gave 67%. Its 52-week range is 5862 – 9,701.
Conclusion
Although Bankex tracks BSE-listed banking equities, its returns are significantly lower than those of other indices. So, don’t expect high returns if you plan to build a portfolio around Bankex. This benchmark is advised for safe and long-term investments. To invest in the stock market, open an account with Dhan.
