BSE 500 Share Price

The BSE 500 is one of the broadest market indices in India, tracking 500 companies across large-cap, mid-cap, and small-cap segments listed on the Bombay Stock Exchange.

It represents a large portion of India's listed market capitalisation, making it a useful indicator of overall market performance-not just the top companies, but the wider market.

The BSE 500 follows a broad yet rule-based selection process to capture a wide cross-section of the market.

1. Step 1: Starting Universe

   
   The index is derived from a broad pool of stocks (the BSE universe). Even if DVRs are included, the number of companies is capped at 500.

2. Step 2: Basic Eligibility Filters

   
   At the time of semi-annual review, companies must meet:
   • Liquidity Ranking (Must be in the top 750 by annualised traded value)
   • Market Cap Ranking (Must be in the top 750 by free-float market cap)

   This rule can be relaxed a bit if 500 stocks are not met.

   • Trading Activity (Must have traded on at least 80% of trading days in the last 6 months.)

3. Step 3: Final Ranking & Selection (500 Stocks)

   
   Companies are then ranked based on average daily total market capitalisation.
   - Top 400 companies selected directly.
   - Existing constituents ranked 401-600, added next.

   If needed, additional companies may be included based on ranking to complete 500 stocks.

The BSE 500 follows a data-driven calculation process, where both market size and trading activity are considered over a defined period.

1. Step 1: Define Observation Period

   
   
   • All calculations are based on the last 6 months of data before the rebalancing date.
   • If a stock is newly listed, then data is considered only from its listing date.

2. Step 2: Calculate Traded Value

   
   1. Daily traded values are observed over the period.
   2. Then, monthly medians of daily traded values are calculated.
   3. Finally, the median of those monthly medians is taken.

3. Step 3: Aggregate Market Value

   
   The free-float market cap of all 500 companies is summed up using this formula:
   
   Index Value = Total Free-Float Market Cap x Base Value / Divisor

4. Step 4: Annualisation

   
   The traded value is annualised using 250 trading days. This helps standardise liquidity comparison across stocks.

5. Step 5: Rebalancing

   
   Conducted semi-annually in June and December, with adjustments for corporate actions like splits or bonuses.

Tracking the BSE 500 share prices gives a holistic view of the Indian equity market, not just a specific segment.

1. Broad Market Coverage

   
   Includes companies across large, mid, and small-cap segments.

2. Closer to "Total Market" View

   
   Offers a more complete picture of market performance compared to narrower indices.

3. Diversified Sector Exposure

   
   Covers multiple industries, reducing dependence on a single sector.

4. Useful Benchmark

   
   Often used as a benchmark to compare the overall portfolio performance of funds, ETFs (Exchange-traded Funds), and other products vs the market.

5. Easy to Track

   
   With live BSE 500 share price updates available, monitoring is straightforward.

With Anand Rathi's TradeMobi platform, invest in BSE indices easily in 5-simple steps.

1. Open / Login to Your Account

   
   Start by logging into your account or opening a demat account and trading account.

2. Explore Investment Options

   
   Look for index funds or ETFs tracking the BSE 500 index.

3. Select Based on Goals

   
   Choose a fund aligned with your investment horizon.

4. Invest and Monitor

   
   Track BSE 500 live performance over time.

5. Stay Updated

   
   Use research insights to understand broader market trends and alerts.

The BSE 500 index was launched on 9th August, 1999, to offer a broader view of the Indian equity market, going beyond limited-stock indices like BSE Sensex, which has only 30 companies.

It was introduced to cover companies across large, mid, and small-cap segments, making it more inclusive to monitor the BSE 500 share price.

Over time, the index has moved towards a more structured and rule-based methodology, focusing on size and liquidity. Now, tracking BSE 500 today or BSE 500 live gives a more complete picture of overall market trends, not just top stocks.