The government has been disinvesting in different PSUs, CPSEs, SUUTIs, and other public sector undertakings for varied purposes. The proceeds from the disinvestments are used for different developmental schemes and economic growth. However, by disinvestment, you may start thinking that the company might have lost its charm, and that’s why the government is disinvesting in it, however, that’s not the case here for BSE Bharat 22 Index’s constituents and even other particular companies. 

Here we will be focusing on the BSE Bharat 22 Index, its constituents, performance, risks, and a lot of other crucial details that you might find useful for your investment in the constituent stocks. 

BSE BHARAT 22 Index – Overview & Constituents 

The BSE Bharat 22 index is a unique index that can only have 22 stocks in it, and these stocks are those where the Government of India (GOI) has been disinvesting. So, the stock tracks the disinvestment strategies by the GOI by tracking the stocks where the GOI disinvests. It was launched in August 2017.  

The BSE Bharat 22 index companies include: (As of 5 May 2025)

AXIS BANK LTD.	NATIONAL ALUMINIUM CO.LTD.
BANK OF BARODA	NBCC (India) Limited
BHARAT ELECTRONICS LTD.	NHPC LTD.
BHARAT PETROLEUM CORPORATION L	NLC India Limited
COAL INDIA LTD.	NTPC LTD.
ENGINEERS INDIA LTD.	OIL AND NATURAL GAS CORPORATION
GAIL (INDIA) LTD.	POWER FINANCE CORPORATION LTD.
INDIAN BANK	POWER GRID CORPORATION OF INDIA
INDIAN OIL CORPORATION LTD.	REC LIMITED
ITC LTD.	SJVN LTD
LARSEN & TOUBRO LTD.	STATE BANK OF INDIA

The stocks by weightage – 

Stocks	Weight in the Index (%)
Larsen & Turbo	14.61
ITC Ltd.	14.42
NTPC Ltd.	9.92
Axis Bank Ltd.	8.63
Power Grid Corporation of India	8.23
State Bank of India	7.74
Oil and Natural Gas Corporation	5.63
Coal India Ltd.	5.19
Bharat Electronics Ltd.	4.69
National Aluminium Co. Ltd.	3.8

Sectoral Weightage 

Sectors	Weightage (%)
Financial Services	20.93
Utilities	20.53
Energy	20.4
Industrials	19.92
FMCG	14.42
Commodities	3.8

Selection Criteria

BSE Bharat 22 index selection criteria are different from most of the indices. Here are the specific criteria for this index – 

• All companies must be listed on the BSE 
• The companies can be classified as Central Public Sector Enterprises (CPSE) by the Goi
• The companies can be classified as Specific Undertaking of the Unit Trust of India (SUUTI)
• All public sector undertakings (PSU) banks
• All other companies where the GOI has disinvested. GOI comes up with a list of the companies that are under its disinvestment program, and the stocks for the index are chosen from the list.   

Factors Affecting the BSE BHARAT 22 Index

The disinvestment program was started for the PSUs that are profit-making so that the Government of India can sell the stakes in these companies and redeem the investments, which it can use for developmental projects. So, the factors that affect the BSE Bharat 22 index are the factors that are considered for the stocks included in the disinvestment program – 

• Business Growth: The companies that are in the disinvestment program must be profit-making, and thus the business performance of the companies needs to be good. Thus, the business growth of these companies affects the index as well, and stock selection depends on the same. 
• Government policies: GOI’s disinvestment policies, investment policies, and all are going to affect this index as the stock selection will depend on these policies and also the performance of the constituent stocks. 
• Interest rates: Interest rates also determine the course of the BSE Bharat 22 index. When the rates are slashed, the markets rise, businesses perform better, and stocks rise significantly. This takes the index higher, and when the interests are high, the credits are expensive, then the businesses suffer, taking the index down. 

BSE BHARAT 22 Index Calculation Method

The BSE Bharat 22 Index value is calculated using a modified market cap weighting method. 

Index constituents are weighted by their float-adjusted market capitalization, with an individual stock weight cap of 15%. Then there is a common India Industry Classification Structure macro-economic indicator weight cap of 20%.  

Then, using he base value of 1000, the index value is determined. 

Performance and Returns

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	-2.48	-1.50
1 Year	-3.53	-0.85
3 Years	25.48	29.54
5 Years	29.29	33.96
10 Years	10.91	14.51
3 Months	0.29	1.10
1 Month	1.35	1.35

Enjoy investing in the top stocks of the BSE Universe with the BSE Bharat 22 index on the Shoonya App!

Risk and Volatility

Here are the details of Annualised Risk and Annualised Risk-adjusted Return generated by the index – 

Period	Price Return (%)	Total Return (%)
Annualised Risks
1 Year	20.02	19.62
3 Years	17.60	17.47
5 Years	18.99	18.90
10 Years	22.11	20.50
Annualised Risk-Adjusted Returns
1 Year	-0.18	-0.04
3 Years	1.43	1.67
5 Years	1.54	1.8
10 Years	0.49	0.71

How to Invest in the BSE BHARAT 22 INDEX?

You can invest in the BSE Bharat 22 Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade BSE Bharat 22 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.
• 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. 

Top ETFs and Index Funds of BSE Bharat 22 Index 

• ICICI Prudential Mutual Fund – Bharat 22 ETF

Conclusion

The BSE Bharat 22 Index has been one of its kind, tracking big companies that have become profitable now with the government’s aid. However, now the government has started disinvesting in them. Tracking this index can be beneficial for understanding how the government has been planning its disinvestment, how these companies are performing, and a lot more, which can help your investment decision-making. 

BSE Bharat 22 Index | FAQs

Source: BSE

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.