IndusInd Bank, Bajaj Housing Finance, BSE among 14 stocks to be included in FTSE India Index #IndiaFinance

Global index provider FTSE on Friday, February 21, revealed the list of companies to be included in the March 2025 Semi-Annual Review of its Global Equity Index Series, with adjustments set to take place on March 21, 2025.

The following companies will be added to the FTSE India Index: 360 ONE WAM, Ajanta Pharma, Apar Industries, Bajaj Housing Finance, Blue Star-B1, BSE, Central Depository Services (India), Crisil, Fertilisers and Chemicals Travancore, Fortis Healthcare, IndusInd Bank, Kaynes Technology India, National Aluminium, and Premier Energies.

These inclusions mark a significant development for the companies involved, reflecting their growing importance in India’s equity market.

FTSE India Index and its significance

The FTSE, or Financial Times Stock Exchange, is a group of stock market indices created by the Financial Times and the London Stock Exchange.

The FTSE India Index plays a significant role for foreign investors looking to invest in India, serving as a key benchmark for tracking the performance of Indian equity markets and helps them gauge market sentiment. Many exchange-traded funds (ETFs) and mutual funds track the FTSE India Index, making it an essential tool for investment decisions.

The index covers various segments, including:

• FTSE India 50 Index: Based on India’s top 50 companies.
• FTSE India All Cap Index: Covers companies of various market caps.
• FTSE India Nifty 500 Index: Matches with the Nifty 500.
• FTSE India Sector Indices: Tracks companies across different sectors.

How are stocks included or excluded in the FTSE India index?

The inclusion and exclusion of stocks in the FTSE India Index are based on specific criteria reviewed quarterly or semi-annually.

Inclusion Criteria:

• Market Capitalisation: Companies must have a free-float market cap above a certain threshold. Larger companies are included in the FTSE India Large Cap Index, while smaller companies enter the Mid Cap or Small Cap indices.
• Liquidity: Stocks must have a significant trading volume, ensuring ease of buying and selling with minimal impact cost.
• Sector Balance: The index aims to provide balanced sector representation, admitting companies only if they perform strongly in their sector.
• Foreign Investment Accessibility: Companies must allow foreign investments. Stocks subject to investment restrictions may be excluded.

Exclusion Criteria:

• Decreased Market Capitalisation: If a company’s free-float market cap falls below the index’s threshold, it may be removed.
• Low Liquidity: Stocks with reduced trading volumes or high impact costs may be excluded.
• Poor Performance: Companies consistently showing weak financial performance can be removed from the index.
• Delisting or Mergers: Companies that are delisted or merged are automatically removed.
• Government Restrictions: Companies subject to government-imposed investment restrictions may be excluded.