BSE Index Services Pvt. Ltd., a wholly owned subsidiary of BSE, launched the BSE Saatvik 100 Index on June 19, 2026, describing it as India’s first stock market index built on Saatvik principles. The index selects 100 companies from the broader BSE 500 Index that meet ethical and value-based criteria, offering investors a formal benchmark for philosophy-driven investing. With this launch, BSE has created a new category of thematic indices in India that go beyond traditional financial metrics to incorporate cultural and ethical considerations in stock selection.
What Is the BSE Saatvik 100 Index?
The BSE Saatvik 100 Index is a thematic equity index designed to track the performance of companies that align with Saatvik principles, a value system rooted in purity, responsibility, and ethical conduct. It is derived from the constituents of the BSE 500 Index, which covers 500 large, mid, and small-cap companies listed on the Bombay Stock Exchange and represents one of the broadest benchmarks of the Indian equity market.
The index has a base value of 1,000 with its first value date set at June 20, 2005, meaning historical performance data before the index’s launch is back-tested. It will be reconstituted semi-annually in June and December each year to ensure that the constituent list remains current and aligned with the Saatvik methodology.
BSE Index Services Pvt. Ltd., the entity behind the index, was formerly known as Asia Index Pvt. Ltd. and is a wholly owned subsidiary of BSE Ltd., Asia’s oldest stock exchange. The company calculates, publishes, and maintains a diverse family of indices, including the flagship Sensex, which has been the benchmark index of the Indian stock market since 1986.
Understanding Saatvik Principles in Investing
The term Saatvik (also spelled Sattvic or Satvik) originates from the Sanskrit word Sattva, which in Hindu philosophy represents one of the three gunas (qualities of nature), along with rajas (passion and activity) and tamas (darkness and inertia). Sattva signifies purity, harmony, balance, and goodness. A sattvic lifestyle emphasises mental clarity, non-violence, moderation, and ethical conduct.
In the context of investing, Saatvik principles translate to selecting companies whose core business activities are consistent with these values. Businesses involved in alcohol, tobacco, gambling, speculative activities, narcotics, leather, meat and poultry, and animal cruelty are typically excluded from the investable universe. The index does not pass judgement on the financial quality or legality of excluded industries. It simply defines a philosophical boundary within which eligible companies are evaluated on financial merit.
This approach is distinct from but complementary to ESG (Environmental, Social, and Governance) investing, which has gained significant traction globally. While ESG frameworks assess a company’s environmental impact, social practices, and governance structures across all industries, Saatvik principles first define which industries qualify for inclusion based on ethical considerations. The launch reflects a broader shift in investor preferences, as market participants increasingly seek to align their portfolios with personal values alongside financial returns.
How the Index Works
Stock Selection and Reconstitution
The starting universe for the BSE Saatvik 100 is the BSE 500 Index, which includes India’s top 500 listed companies by market capitalisation. From this pool, companies whose primary business activities conflict with Saatvik principles are excluded. The remaining eligible companies are then ranked, and the top 100 by market capitalisation and liquidity are selected for inclusion.
The index reconstitutes twice a year, in June and December. At each reconstitution, the constituent list and weightages are reviewed and updated to reflect changes in the BSE 500 universe and to ensure continued compliance with Saatvik methodology. This semi-annual refresh keeps the index aligned with both market movements and philosophical criteria.
Sector Composition and Top Holdings
Financial services dominate the index with the highest sector weight, accounting for 37.55% of the total allocation as of the launch. This is because financial sector businesses naturally qualify under the Saatvik framework given the nature of their activities. Information technology, telecommunications, and industrial companies form the next largest allocations, giving the index a tilt toward quality, capital-light businesses with strong governance track records.
| Rank | Company | Weight (%) |
|---|---|---|
| 1 | HDFC Bank | 9.71 |
| 2 | ICICI Bank | 7.69 |
| 3 | Reliance Industries | 7.65 |
| 4 | Bharti Airtel | - |
| 5 | Larsen & Toubro | - |
| 6 | Infosys | - |
| 7 | State Bank of India | - |
| 8 | Axis Bank | - |
| 9 | Kotak Mahindra Bank | - |
| 10 | Mahindra & Mahindra | - |
The index has delivered annualised total returns of 12.22% over three years, 11.11% over five years, and 13.70% over ten years, as of May 29, 2026. However, these figures are based on back-tested data since the index was launched only in June 2026.
Significance for India’s Capital Markets
The BSE Saatvik 100 Index fills a gap that previously had no structured solution in India’s financial landscape. Before this launch, investors wanting to align their portfolios with ethical or value-based principles had no standard benchmark to reference. The index gives fund managers, portfolio management services (PMS) providers, and individual investors a transparent, rules-based benchmark to build around.
Ashutosh Singh, Managing Director and CEO of BSE Index Services, said the launch marks a step in broadening the range of thematic indices for investors seeking alignment between investment decisions and value-based principles. He noted that investor preferences are increasingly extending beyond traditional financial metrics to include ethical, cultural, and philosophy-driven considerations.
The index can serve multiple investment purposes. Asset management companies can develop exchange-traded funds (ETFs) and index funds that track the BSE Saatvik 100, allowing investors to gain exposure through regular stock exchange purchases. It can also serve as a benchmark for portfolio management services, mutual fund schemes, and investment portfolios that follow a similar philosophy. Additionally, the index provides a foundation for structured investment products catering to the growing demand for values-based investing.
BSE Ltd., which owns BSE Index Services, was established in 1875 and is Asia’s oldest stock exchange. Headquartered at P. J. Towers, Dalal Street, Mumbai, it is also the world’s largest exchange by number of listed companies, with over 6,000 listed firms. The exchange is regulated by the Securities and Exchange Board of India (SEBI). The launch of the Saatvik 100 adds to BSE’s growing suite of thematic indices, which already include the BSE 100 ESG Index, sectoral indices, and factor-based indices such as momentum, quality, and low volatility.
Key Takeaways
- BSE Index Services Pvt. Ltd. launched the BSE Saatvik 100 Index on June 19, 2026, as India’s first Saatvik-themed equity index.
- The index is derived from the BSE 500 Index and comprises 100 companies that align with Saatvik principles of ethical and value-based conduct.
- It has a base value of 1,000 with a first value date of June 20, 2005, and is reconstituted semi-annually in June and December.
- The term Saatvik originates from the Sanskrit word Sattva, meaning purity, harmony, and goodness in Hindu philosophy.
- Financial services hold the highest sector weight in the index at 37.55%, with HDFC Bank as the top constituent at 9.71% weight.
- The index can be used for passive investment strategies such as ETFs and index funds, and as a benchmark for PMS and mutual fund schemes.
