With the growing population of the country, and increasing living standards, growth of the energy sector is inevitable. As of 30 April 2024, the total installed power capacity of the country is 442.85 GW, with which India holds the third-largest power producer and consumer place in the world. Almost 1/4th of the capital expenditure planned between 2019 and 2025 has been dedicated to energy sector projects amounting to ₹111 lakh crore. All these numbers indicate towards the immense potential of the sector, and one Index that can help you track the entire sector and its performance, is the S&P BSE Energy Index.
This article will revolve around the intricate details of the index, from its constituents, to the performance, to risks involved, and a lot more.
S&P BSE Energy Index – Overview & Constituents
The S&P BSE Energy index tracks the performance of the stocks which are classified as energy sector members and present in the BSE Allcap. This index currently has 29 constituting stocks and reconstitution frequency is yearly, which happens in September. Quarterly reviews take place in March, June, and December.
This index was launched in the year 2015 on 15 April and the first value date is thus 16 April 2015 with a base value of 1000.
The S&P BSE Energy index stocks list includes – (As of 11 March 2025)
| ADANI TOTAL GAS LIMITED | HINDUSTAN PETROLEUM CORPORATION |
| AEGIS LOGISTICS LTD. | INDIAN OIL CORPORATION LTD. |
| BHARAT PETROLEUM CORPORATION L | INDRAPRASTHA GAS LTD. |
| CASTROL INDIA LTD. | IRM ENERGY LIMITED |
| CHENNAI PETROLEUM CORPORATION | JINDAL DRILLING & INDUSTRIES L |
| COAL INDIA LTD. | Mahanagar Gas Limited |
| CONFIDENCE PETROLEUM INDIA LTD | MANGALORE REFINERY & PETROCHEM |
| Deep Industries Limited | OIL AND NATURAL GAS CORPORATION |
| GAIL (INDIA) LTD. | OIL INDIA LTD. |
| Gandhar Oil Refinery (India) L | PANAMA PETROCHEM LTD. |
| GANESH BENZOPLAST LTD. | PETRONET LNG LTD. |
| Gujarat Gas Limited | RELIANCE INDUSTRIES LTD. |
| GUJARAT STATE PETRONET LTD. | SANDUR MANGANESE & IRON ORES L |
| GULF OIL LUBRICANTS INDIA LTD | SAVITA OIL TECHNOLOGIES LTD. |
| HINDUSTAN OIL EXPLORATION CO. LTD. | |
The top ten stocks by weightage –
| Stocks | Weightage (%) |
| Reliance Industries Ltd. | 36 |
| Oil and Natural Gas Corporation | 12.39 |
| Coal India Ltd. | 11.87 |
| Bharat Petroleum Corporation Ltd. | 6.53 |
| Gail (India) Ltd. | 5.93 |
| Indian Oil Corporation Ltd. | 5.88 |
| Hindustan Petroleum Corporation | 3.97 |
| Petronet LNG Ltd. | 2.99 |
| Oil India Ltd. | 2.60 |
| Adani Total Gas Limited | 2.16 |
Selection Criteria
The stock selection criteria for the equity index S&P BSE Energy index include –
- The stocks need to be a part of the BSE Allcap universe
- Macro-economic indicator for the stocks for this index has to be Energy
Factors Affecting the S&P BSE Energy Index
The factors that affect the energy sector also affect the performance of the S&P BSE Energy Index –
- Energy Prices: The prices of both renewable and non-renewable resources used for energy production fluctuate, which affects the costing of the energy producing businesses, and thus the stock prices are affected, which leads to fluctuation in the index as well.
- Capital Expenditure: As mentioned in the introduction, almost 1/4th of the capex in India is used for developing energy projects as seen between 2019-2025 and this trend also defines how the sector performs, and in turn, depicts the index’s performance too.
- Technological Advancements: With the advancement in technology, new methods of energy production are being introduced, new resources are being found, which also lead to growth in the business, thus changing the market dynamics.
- Policies and regulatory framework: Finally, the energy sector stocks are heavily dependent on policies by the government and foreign policies too. Any change in the policies, regulatory framework can affect the sector and thus the index.
S&P BSE Energy Index Calculation Method
For the S&P BSE Energy index, Capped Method is used for weighing the stocks.
- Individual weight of the constituting stocks is capped at 33%
- The top 3 constituents’ weight must be within 65%
So, the weights are adjusted accordingly to calculate the index valuation. Only when the appropriate weights are assigned to the stocks selected, then all the market capitalisation is adjusted accordingly, and then summed up. Then the result is divided by the base value and multiplied by 100.
Performance and Returns
Here are the returns for different periods –
Price Returns & Total Returns
| Period | Price Return (%) | Total Return (%) |
| YTD | -9.70 | -8.94 |
| 1 Year | -17.67 | -15.23 |
| 5 Years | 17.32 | 20.71 |
| 10 Years | 14.57 | 17.59 |
Enjoy investing in the top stocks of the NSE universe with the S&P BSE Energy index on Shoonya App!
Risk and Volatility
S&P BSE Energy Index invests in only one sector and thus the risk factor is high due to limited diversification. The annualised risk of the index is given below along with the Annualised Risk-Adjusted Returns. Here the return taken is the Total Return.
| Period | Annualised Risk (%) | Annualised Risk-Adjusted Return (%) |
| 1 Year | 19.75 | -0.77 |
| 3 Years | 21.90 | 0.61 |
| 5 Years | 25.71 | 0.81 |
| 10 Years | 23.07 | 0.76 |
How to Invest in the S&P BSE Energy INDEX?
You can invest in the S&P BSE Energy Index using ETFs, or index funds, or you can trade them on the trading platform. You can also trade S&P BSE Energy Index futures, and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps –
- Open the Shoonya app.
- Head to the “Watchlist” tab located at the bottom of your screen.
- In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices. Choose the “S&P BSE Energy Index”.
- Once you find your desired index, click on the add option given on the right side.
- Now you can see the index on the watchlist.
Conclusion
Thus, if you are looking to invest in the energy sector and take part in the growth of the sector, then tracking the sector is a must and you can do it easily with this S&P BSE Energy Index anytime, and anywhere.
S&P BSE Energy Index | FAQs
The S&P BSE Energy index is rebalanced annually. The calculation frequency is real-time.
It uses capped weight for the constituent stocks, where individual weight is capped at 33% and the top three constituents’ weight together cannot be more than 65%.
The current PE of the S&P BSE Energy index is 11.5.
The S&P BSE Energy index was launched on 15 April, 2015.
The base value used for index calculation is 1000.
The current P/B ratio of the index is 1.66.
The current dividend yield stands at 3.7%.
Source: IBEF
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.