BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE, on Wednesday launched four new indices — two Long-Short Indices and two Inverse Indices — to offer systematic hedging tools to asset managers and investors.
The two Long-Short indices follow an 80:20 allocation framework, combining 80 per cent long exposure in the BSE 500 with a 20 per cent inverse position in either the BSE 200 or the BSE 150 MidCap index. The two Inverse indices — BSE 200 1X Inverse Daily and BSE 150 MidCap 1X Inverse Daily — track the inverse returns of their respective underlying total return indices on a daily basis.
Ashutosh Singh, MD & CEO of BSE Index Services, said the indices were designed to support rule-based long-short strategies and help asset managers build more resilient product offerings as markets grow increasingly dynamic.
The indices are intended primarily for benchmarking Specialised Investment Funds (SIFs) and other long-short strategies run by asset managers.
BSE Index Services, formerly Asia Index Pvt. Ltd., calculates and maintains a broad family of indices for domestic and global investors. Its parent, BSE, is Asia’s oldest stock exchange and the world’s largest by number of listed companies. The flagship Sensex index is widely used as a barometer for the Indian economy.