The LargeMid Mid-cap segment in the stock market is a fascinating one. While the stocks falling under this segment offer returns usually higher than large-cap stocks, it doesn’t raise the risk quotient as much as a midcap stock.
To track these stocks, BSE came up with an index known as the BSE Momentum Index, and in this article, we will discuss this S&P BSE Momentum 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 MOMENTUM Index – Overview & Constituents
The BSE Momentum index is an index which tracks the top 30 companies out of the BSE LargeMid cap universe. This is to see how these stocks remain persistent in relative performance. This is measured by the momentum score assigned as per risk adjusted price of the stocks.
The BSE Momentum index companies include: (As of 12 May 2025)
| BAJAJ HOLDINGS & INVESTMENT LT | LUPIN LTD. |
| BHARAT ELECTRONICS LTD. | MAHINDRA & MAHINDRA LTD. |
| BHARTI AIRTEL LTD. | Mazagon Dock Shipbuilders Limited |
| Bharti Hexacom Limited | MUTHOOT FINANCE LTD. |
| COROMANDEL INTERNATIONAL LTD. | ORACLE FINANCIAL SERVICES SOFT |
| DIVIS LABORATORIES LTD. | PB Fintech Limited |
| Dixon Technologies (India) Limited | PERSISTENT SYSTEMS LTD. |
| EICHER MOTORS LTD. | Polycab India Limited |
| Eternal Limited | Siemens Energy India Limited |
| GLENMARK PHARMACEUTICALS LTD. | SIEMENS LTD. |
| INDIAN HOTELS CO.LTD. | SOLAR INDUSTRIES INDIA LTD. |
| INDUS TOWERS LIMITED | SUN PHARMACEUTICAL INDUSTRIES |
| INFO EDGE (INDIA) LTD. | TORRENT PHARMACEUTICALS LTD. |
| InterGlobe Aviation Limited | TRENT LTD. |
| Laurus Labs Limited | UNITED SPIRITS LTD. |
| VEDANTA LIMITED |
# Here, instead of 30 stocks, 31 stocks are there, but Bharti Hexacom is a sister concern of Bharti Airtel.
The stocks by weightage –
| Stocks | Weight in the Index (%) |
| Dixon Technologies (India) Ltd. | 5..71 |
| Bharat Electronics Ltd. | 5.13 |
| Bharti Airtel Ltd. | 5.13 |
| Eternal Ltd. | 5.12 |
| InterGlobe Aviation Ltd. | 5.01 |
| Mahindra & Mahindra Ltd. | 5 |
| Sun Pharmaceuticals Industries | 4.94 |
| DIVIS Laboratories Ltd. | 4.86 |
| Indian Hotels Co. Ltd. | 4.76 |
| TRENT Ltd. | 4.67 |
Sectoral Weightage
| Sectors | Weightage (%) |
| Consumer Discretionary | 33.94 |
| Healthcare | 17.17 |
| Industrials | 9.61 |
| Telecommunications | 9.16 |
| Commodities | 8.84 |
| Financial Services | 8.61 |
Selection Criteria
BSE Momentum index selection criteria are –
- All companies must be listed on the BSE
- The index is a part of the BSE Factor Index
- The stocks are drawn from the BSE LargeMid cap universe
- The stocks are ranked according to momentum scores
Factors Affecting the BSE MOMENTUM Index
The factors that affect the BSE Momentum index –
- Economic Growth and Cycle: Primarily, the index is affected by the economic cycle and growth. When the market is in a bull run, the index performs well, given that the stocks it tracks perform well, while during sluggish markets, the index becomes a little sluggish, but due to the presence of large and mid-cap stocks, the persistence is performance is seen often.
- Interest rates: Interest rates also determine the course of the BSE Momentum 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 MOMENTUM Index Calculation Method
The BSE Momentum Index value is calculated using a momentum score from the risk-adjusted price of the stocks.
Then, using he base value of 100, the index value is determined.
Performance and Returns
Here are the returns for different periods –
| Period | Price Return (%) | Total Return (%) |
| YTD | -7.40 | -7.74 |
| 1 Year | 0.11 | 1.37 |
| 3 Years | 18.94 | 20.90 |
| 5 Years | 23.81 | 25.35 |
| 10 Years | 17.17 | 18.61 |
| 3 Months | -0.69 | -0.41 |
| 1 Month | 4.66 | 4.69 |
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 | 24.28 | 24.30 |
| 3 Years | 23.95 | 23.89 |
| 5 Years | 20.45 | 20.39 |
| 10 Years | 20.28 | 19.73 |
| Annualised Risk-Adjusted Returns | ||
| 1 Year | – | 0.06 |
| 3 Years | 0.78 | 0.87 |
| 5 Years | 1.16 | 1.24 |
| 10 Years | 0.85 | 0.94 |
How to Invest in the BSE MOMENTUM INDEX?
You can invest in the BSE Momentum Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade BSE Momentum 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.
Conclusion
The BSE Momentum Index has been instrumental in helping investors with the performance of the top stocks in the Large-Midcap stocks. It helps in understanding how these stocks are working and, most importantly, how persistent they are in their relative performance to the risk-adjusted price.
BSE Momentum Index | FAQs
BSE Momentum is rebalanced semi-annually in March and September.
The current PE of the BSE MOMENTUM index is 41.22.
The current PB of the BSE MOMENTUM index is 8.44.
The current dividend yield of the BSE MOMENTUM index is 0.93.
The BSE Momentum index was launched on 3rd December 2015.
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.