All you need to know about the S&P BSE Largecap Index

Largecap stocks are everyone’s favourite due to their stability, higher liquidity, lower risk quotient and other features. These stocks help in generating decent gains and remain stable when the market is in turmoil. Thus to track these stocks, there are multiple indices, however, out of all, one of the most popular indexes which tracks these large-cap stocks is the S&P BSE Largecap index. 

In this article, we will discuss the S&P BSE Large-Cap in detail, with its components, selection criteria, investment process, returns, risks and more for you to understand the index in and out.

 

S&P BSE LARGECAP Index – Overview & Constituents 

The S&P BSE Largecap index represents 70% of the total market capitalization of the index BSE Allcap and it is designed to track the performance of the Largecap segment in the stock market in India. 

The usual market capitalization of the stocks included in the index is around ₹20000 crore and more. The stocks of the index are top large-cap stocks which are stable offering decent returns without a higher risk quotient. 

The S&P BSE Largecap index stocks list includes – (As of 21 January 2025) – 

ABB INDIA LIMITED	CIPLA LTD.	INDIAN OIL CORPORATION LTD.	PIDILITE INDUSTRIES LTD.	ULTRATECH CEMENT LTD.
Adani Energy Solutions Limited	COAL INDIA LTD.	INDIAN OVERSEAS BANK	Polycab India Limited	UNION BANK OF INDIA
ADANI ENTERPRISES LTD.	DABUR INDIA LTD.	Indian Railway Finance Corpora	POWER FINANCE CORPORATION LTD.	UNITED SPIRITS LTD.
Adani Green Energy Limited	DIVIS LABORATORIES LTD.	INDUS TOWERS LIMITED	POWER GRID CORPORATION OF INDI	Varun Beverages Limited
ADANI PORTS AND SPECIAL ECONOMIC	DLF LTD.	INDUSIND BANK LTD.	PUNJAB NATIONAL BANK	VEDANTA LIMITED
ADANI POWER LTD.	DR.REDDYS LABORATORIES LTD.	INFO EDGE (INDIA) LTD.	REC LIMITED	WIPRO LTD.
ADANI TOTAL GAS LIMITED	EICHER MOTORS LTD.	INFOSYS LTD.	RELIANCE INDUSTRIES LTD.	Zomato Limited
AMBUJA CEMENTS LTD.	GAIL (INDIA) LTD.	InterGlobe Aviation Limited	Samvardhana Motherson Internat	CHOLAMANDALAM INVESTMENT AND FINANCE
APOLLO HOSPITALS ENTERPRISE LT	GODREJ CONSUMER PRODUCTS LTD.	ITC LTD.	SBI CARDS AND PAYMENT SERVICES	Zydus Lifesciences Limited
ASIAN PAINTS LTD.	GRASIM INDUSTRIES LTD.	ITCHOTELS	SBI Life Insurance Company Lim	NTPC LTD.
Avenue Supermarts Limited	HAVELLS INDIA LTD.	JINDAL STEEL & POWER LTD.	SHREE CEMENT LTD.	TVS MOTOR COMPANY LTD.
AXIS BANK LTD.	HCL TECHNOLOGIES LTD.	Jio Financial Services Limited	Shriram Finance Limited	CANARA BANK
BAJAJ AUTO LTD.	HDFC Asset Management Company	JSW ENERGY LTD	SIEMENS LTD.	IDBI BANK LTD.
BAJAJ FINANCE LIMITED	HDFC BANK LTD.	JSW STEEL LTD.	SRF LTD.	NESTLE INDIA LTD.
BAJAJ FINSERV LTD.	HDFC LIFE INSURANCE COMPANY LI	KOTAK MAHINDRA BANK LTD.	STATE BANK OF INDIA	TRENT LTD.
BAJAJ HOLDINGS & INVESTMENT LT	HERO MOTOCORP LTD.	LARSEN & TOUBRO LTD.	SUN PHARMACEUTICAL INDUSTRIES	MARUTI SUZUKI INDIA LTD.
BANK OF BARODA	HINDALCO INDUSTRIES LTD.	LIFE INSURANCE CORPORATION OF	TATA CONSULTANCY SERVICES LTD.	ICICI Prudential Life Insurance
BERGER PAINTS INDIA LTD.	Hindustan Aeronautics Limited	LTIMindtree Limited	TATA CONSUMER PRODUCTS LIMITED	TITAN COMPANY LIMITED
BHARAT ELECTRONICS LTD.	HINDUSTAN UNILEVER LTD.	Macrotech Developers Limited	TATA MOTORS LTD.	BRITANNIA INDUSTRIES LTD.
BHARAT PETROLEUM CORPORATION L	HINDUSTAN ZINC LTD.	MAHINDRA & MAHINDRA LTD.	TATA POWER CO. LTD.	TECH MAHINDRA LTD.
BHARTI AIRTEL LTD.	ICICI BANK LTD.	Mankind Pharma Limited	TATA STEEL LTD.	MARICO LTD.
BOSCH LTD.	ICICI Lombard General Insurance

The top sectors by weightage – 

1. Financial Services – 32.7%
2. Consumer Discretionary – 13.39%
3. Information Technology – 11.7%
4. Energy – 8.97%
5. Fast Moving Consumer Goods – 8.17%

The top ten stocks by weightage – 

1. HDFC Bank: 9.61%
2. Reliance Industries Ltd.: 6.83%
3. ICICI Bank Ltd.: 6.71%
4. Infosys Ltd.: 5.09%
5. Bharti Airtel Ltd.: 3.38%
6. Larsen & Turbo Ltd.: 3.24%
7. Tata Consultancy Services: 3.24%
8. ITC Ltd.: 3.16%
9. State Bank of India Ltd.: 2.27%
10. Axis Bank Ltd.: 2.19%

Selection Criteria

The stock selection criteria for the equity index S&P BSE Largecap index include – 

• For selection, first you need to find out the average daily total market capitalization of the companies in BSE Allcap
• Then order the in descending form
• Then select the companies with average daily total market capitalization accumulated to large cap’s 70%, then 15% each of mid-cap and small-cap segments’ stocks.  

Factors Affecting the S&P BSE LARGECAP Index

The factors which affect the S&P BSE Largecap index include – 

• Earnings reports or financial reports: Large-cap stocks are less dependent on external factors and more on their fundamentals and thus the index is also dependent on the results, and earnings/quarterly/annual reports published by its constituent companies. Their earnings report often make them volatile especially when the expectations don’t match the real results. 
• Market sentiment: While Large-cap stocks are less volatile, however, strong market sentiments whether positive or negative can affect the index. 
• Government policies: This index also depends on government policies as most of the blue-chip/Large-cap companies have a lot of tie-ups with the government. If the government changes, its policies change, affecting the stocks and in turn the index. 
• Export and import policies: Similarly, Large-cap companies export a lot of their goods and services and if the EXIM policies change, then their businesses get affected and that in turn affects the index as well. 

S&P BSE LARGECAP Index Calculation Method

For the S&P BSE Largecapindex, the stocks are selected based on free-float market capitalization. 

• The current market price of the stocks of the index is multiplied by the number of free-float shares, which excludes shares held by promoters, government, trusts, etc. This results in the weighted market cap of the stocks.  
• Then weighted market capitalization of all the stocks is taken into account and summed up. 
• Then the result is divided by the base period market capitalization to derive the index value. 

S&P BSE Largecap Index Value = (Current Market Cap or Weighted Market Cap/ Base Market Cap) *1000

Performance and Returns (As of 31 December 2024)

Here are the returns for different periods – 

Price Returns

YTD: 10.38%%

1 Year:  10.38%

5 Year: 14.49%

10 Year: 11.11%

QT: -8.87%

Total Returns

YTD: 11.71%

1 Year:  11.71%

5 Year: 16.05%

10 Year: 12.62%

QT: -8.69%

Enjoy investing in the top stocks of the Nifty 500 universe with the S&P BSE Largecap index on Shoonya App!

Risk and Volatility

Since S&P BSE Largecap invests across different sectors which helps it diversify the risk, however, that said, the risk quotient is not nil, and here is the analysis. 

The annualised risk on the total return of the index is as follows – 

Period	Annualised Risk (%)	Annualised Risk-Adjusted Returns
1 Year	12.74	0.92
3 Year	13.03	0.96
5 Year	19.18	0.84
10 Year	16.52	0.76

How to Invest in the S&P BSE LARGE CAP INDEX?

You can invest in the S&P BSE Largecap Index using ETFs, or index funds, or you can trade them on the trading platform. You can also trade S&P BSE Largecap 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

Thus, if you are investing in large-cap stocks, or want to invest in Large-cap funds, then tracking the S&P BSE Largecap Index can be helpful in many ways. The index can help you understand and compare the returns you generate from your large-cap investments. 

S&P BSE Largecap Index | FAQs

Source: AsiaIndex

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