BSE Bankex changes will be effective from today. 4 new stocks include Canara Bank

The restructuring of the BSE BANKEX index came into effect from December 26, with four new banking entities added to the index. Effective today, shares of Canara Bank, AU Small Finance Bank, Punjab National Bank (PNB) and Union Bank of India have been included in the above index.

There are no exclusions as part of this reshuffle, and the index now consists of 14 components with a revised weighting structure that covers the top three stocks at 45%.

The update follows an earlier announcement by BSE Index Services, detailing corrections in several indices, including BSE Sensex, BSE 100 and BSE SENSEX 50.

The inclusion of new constituents in BSE BANKEX is part of a comprehensive index restructuring aimed at realigning the composition based on prevailing market dynamics and eligibility criteria.

This development comes at a time when BSE is actively working to strengthen its offering in the derivatives segment.

BSE MD and CEO Sundararaman Ramamurthy earlier said that the exchange is focused on making BANKEX a flagship product by promoting monthly derivatives. BSE aims to expand monthly derivative offerings with plans to introduce additional products that are expected to make economic sense for the broader market.

BSE is witnessing significant traction in the derivatives segment, especially after the re-launch of Sensex derivatives in May 2023. Sensex derivatives alone have captured more than 45% market share in terms of contracts, close to NSE’s Nifty in this space.

The exchange also recorded a notional turnover market share of 43.5% and a premium market share of 25.9% in the F&O segment for November, according to data from Motilal Oswal.

Strategic measures such as product introductions, changing expiry days and deepening the maturity of index products have contributed to BSE’s momentum. BSE’s Sensex derivatives currently have a 99.9% correlation with the Nifty, and the product now sees participation from over 550 brokers and 435 foreign portfolio investors.

Brokerage firm B&K Securities noted that the focus is on expanding trading in longer-term contracts and increasing engagement on non-expiry days, which is in line with BSE’s objective to expand market depth and improve premium quality. The index revision and product development are part of BSE’s strategy to sustain its position in the index options space in the coming years, especially in the FY26-28 window.

“BSE is well positioned to maintain a steady growth rate and increase in market share in the index options space,” said Swarnabha Mukherjee of B&K Securities, adding that BSE’s market share has been driven by new product introductions such as SENSEX and BANKEX contracts, strategic switching and focus on intraday deepening. Sensex product.

“Additionally, we expect more client and member onboarding and scale-up in colocation business to support derivatives volume growth and premium quality,” Mukherjee added.

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