BSE Dollex 100 Index

The BSE Dollex 100 index is the US dollar (USD) version of the BSE 100 index. It is designed to measure the performance of 100 large-cap companies listed on the BSE, based on size and liquidity across sectors.

The index reflects the same constituents as the BSE 100, but here, returns in USD instead of Indian Rupees (INR). This makes it useful for tracking market performance from a global or currency-adjusted perspective.

By combining equity performance with currency movement, the BSE Dollex 100 index provides a view of how Indian large-cap stocks perform when adjusted for USD-INR exchange rate changes.

The BSE Dollex 100 index follows the same selection framework as the BSE 100 index. Hence, the selection process is also similar.

The BSE Dollex 100 index is derived by converting the BSE 100 index value from INR to USD using the USD-INR exchange rate.

1. Step 1: Base Index Value

   
   The BSE 100 index value is calculated in Indian Rupees using the free-float market capitalisation method.

2. Step 2: Currency Conversion

   
   The INR-based index value is adjusted using the USD-INR exchange rate.

3. Step 3: Index Formula

   
   Dollex Value = Index Value (INR) x (Base USD-INR Rate / Current USD-INR Rate)

4. Step 4: Combined Impact

   
   The final index value reflects:
   • Movement in stock prices
   • Changes in the USD-INR exchange rate

5. Step 5: Adjustments & Continuity

   
   Corporate actions are adjusted in the base index (BSE 100).
   Currency adjustments ensure consistency in USD terms.

6. Step 6: Review & Rebalancing

   
   The index follows the same review cycle as the BSE 100 index.

Let us look at some benefits of investing in BSE Dollex 100:

• USD-Based Performance Tracking: Measures index performance in US dollar terms instead of INR.
• Currency-Adjusted Returns: Reflects the combined effect of equity market movement and exchange rate changes.
• Global Comparison Tool: Allows comparison of Indian equities with global markets on a common currency basis.
• Large-Cap Representation: Tracks 100 large-cap companies across sectors through its base index.
• Useful for Foreign Investors: It helps evaluate the Indian market performance from an international perspective.
• Benchmark for Dollar Returns: Acts as a reference point to fund houses for USD-denominated investment analysis.

With Anand Rathi's TradeMobi platform, investing in the BSE Dollex 100 index is simple.

Here's how to get started:

1. Step 1: Open / Login to Your Account

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

2. Step 2: Explore Investment Options

   
   Look for index funds or global exposure funds linked to the BSE 100 or similar benchmarks.

3. Step 3: Choose Your Investment

   
   Pick a suitable investment option based on your understanding and currency exposure preference.

4. Step 4: Invest and Track

   
   Monitor both index performance and currency movement affecting the BSE Dollex 100 share price.

5. Step 5: Stay Updated

   
   Track global market trends and currency movements to understand index fluctuations.

The BSE Dollex 100 index was launched on 22 May 2006 as the USD-denominated version of the BSE 100 index.

It was introduced to provide a currency-adjusted benchmark for tracking Indian equity performance in US dollar terms. This made it useful for global investors and for comparing Indian markets with international indices.

By linking the index value to both stock performance and exchange rate movements, the BSE Dollex 100 offers a broader perspective on market trends.

The index continues to follow the structure and methodology of the BSE 100, with periodic reviews to maintain relevance.