The Large Mid-cap segment in the stock market is quite interesting. The stocks in this segment offer the best of both worlds, which are returns usually higher than large-cap stocks, and which risk quotient usually below mid-cap stocks.
To track these stocks, BSE came up with an index known as the BSE Quality Index, and in this article, we will discuss this BSE Quality 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 QUALITY Index – Overview & Constituents
The BSE Quality index is an index that tracks the top 30 companies out of the BSE LargeMid cap universe. This index tracks the performance of these high-quality stocks, which are selected on the basis of quality score.
The BSE Quality index companies include: (As of 2 June 2025)
| ABB INDIA LIMITED | EMAMI LTD. |
| BHARAT ELECTRONICS LTD. | MARICO LTD. |
| CRISIL LTD. | HCL TECHNOLOGIES LTD. |
| HINDUSTAN ZINC LTD. | ORACLE FINANCIAL SERVICES SOFT |
| INFOSYS LTD. | TATA CONSULTANCY SERVICES LTD. |
| TRENT LTD. | PAGE INDUSTRIES LTD. |
| TORRENT PHARMACEUTICALS LTD. | BAJAJ AUTO LTD. |
| ABBOTT INDIA LTD. | Dixon Technologies (India) Limited |
| GLAXOSMITHKLINE PHARMACEUTICAL | NIPPON LIFE INDIA ASSET MANAGE |
| NESTLE INDIA LTD. | Hindustan Aeronautics Limited |
| BRITANNIA INDUSTRIES LTD. | HDFC Asset Management Company |
| COLGATE-PALMOLIVE (INDIA) LTD. | Indian Railway Catering and Tourism |
| CASTROL INDIA LTD. | Mazagon Dock Shipbuilders Limited |
| GILLETTE INDIA LTD. | HYUNDAI MOTOR INDIA LIMITED |
| 3M INDIA LTD. | Waaree Energies Limited |
The stocks by weightage –
| Stocks | Weight in the Index (%) |
| Hindustan Aeronautics Ltd. | 7.6 |
| Bharat Electronics Ltd. | 7.25 |
| Britannia Industries Ltd. | 6 |
| Bajaj Auto Ltd. | 5.98 |
| Trent Ltd. | 5.87 |
| Nestle India Ltd. | 5.7 |
| HCL Technologies Ltd. | 5.56 |
| Tata Consultancy Services Ltd. | 5.16 |
| Infosys Ltd. | 5.13 |
| Dixon Technologies (India) Ltd. | 5.01 |
Sectoral Weightage
| Sectors | Weightage (%) |
| Consumer Discretionary | 24.7 |
| Healthcare | 20.9 |
| Industrials | 20.7 |
| Information Technology | 17.43 |
| Financial Services | 6.7 |
| Healthcare | 5.81 |
| Commodities | 1.92 |
| Energy | 1.08 |
| Diversified | 0.73 |
Selection Criteria
BSE Quality index selection criteria are –
- All companies must be listed on the BSE
- The index is a part of the BSE Factor Indices
- The stocks are drawn from the BSE LargeMid cap universe, which is a sub-index of the AllCap index of BSE.
- The stocks are ranked according to Quality scores
Factors Affecting the BSE QUALITY Index
The factors that affect the BSE Quality 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 Quality 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 QUALITY Index Calculation Method
The BSE Quality Index value is calculated using a Quality score. This score is determined by considering –
- Return on equity (ROE)
- Accrual Ratios
- Financial Leverage Ratios
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 | 1.70 | 2.47 |
| 1 Year | -1.72 | 0.13 |
| 3 Years | 19.45 | 22.56 |
| 5 Years | 22.06 | 25.02 |
| 10 Years | 13.08 | 15.58 |
| 3 Months | 15.88 | 16.25 |
| 1 Month | 4.82 | 5.05 |
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 | 20.32 | 20.27 |
| 3 Years | 17.10 | 17.13 |
| 5 Years | 14.83 | 14.84 |
| 10 Years | 15.71 | 15.37 |
| Annualised Risk-Adjusted Returns | ||
| 1 Year | -0.08 | 0.01 |
| 3 Years | 1.13 | 1.3 |
| 5 Years | 1.49 | 1.69 |
| 10 Years | 0.83 | 1.01 |
How to Invest in the BSE QUALITY INDEX?
You can invest in the BSE Quality Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade BSE Quality 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 Quality Index has been pivotal for investors who are trying to track the performance of the top stocks in the Large-Midcap stocks. It helps in understanding how these stocks are performing, how much return they are offering on their equity and leverage they have, and more.
BSE Quality Index | FAQs
BSE Quality is rebalanced semi-annually in March and September.
The current PE of the BSE QUALITY index is 42.76.
The current PB of the BSE QUALITY index is 15.8.
The current dividend yield of the BSE QUALITY index is 1.06%.
The BSE Quality Index was launched on 3rd December 2015.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.