How the BSE Saatvik 100 Index Works
- What Does Saatvik Actually Mean Here?
- How Are Companies Chosen for the BSE Saatvik 100 Index?
- How Is the BSE Saatvik 100 Index Different from Shariah and ESG Indices?
- Which Sectors and Companies Have the Highest Weight in the BSE Saatvik 100 Index?
- How Has the BSE Saatvik 100 Index Performed?
- BSE Saatvik 100 at a Glance
- How Can You Invest in the BSE Saatvik 100 Index?
- Conclusion
- Frequently Asked Questions
The Bombay Stock Exchange (BSE) launched the BSE Saatvik 100 Index on 17 June 2026 as India’s first ethical index. It tracks 100 companies selected from the BSE 500 Index. In this blog, you will learn how the BSE Saatvik 100 Index works and what makes it different from other market indices.
💡 Quick Answer
The BSE Saatvik 100 Index is India’s first ethical index, launched by the Bombay Stock Exchange on 17 June 2026. It picks 100 companies from the BSE 500, applying Saatvik principles of non-violence and compassion to exclude businesses like alcohol, tobacco, gambling and weapons, and is rebalanced every June and December.
What Does Saatvik Actually Mean Here?
Saatvik is a concept rooted in Indian philosophy. It represents purity, balance, and ethical living. Accordingly, the BSE Saatvik 100 Index applies these principles when selecting companies. It excludes businesses whose primary activities do not align with the index’s eligibility criteria.
How Are Companies Chosen for the BSE Saatvik 100 Index?
The BSE Saatvik 100 Index draws its constituents from the BSE 500 Index. It then excludes businesses involved in activities that do not meet the index’s eligibility criteria. These include alcohol, tobacco, gambling, weapons, meat, leather, and animal harm. The selection process follows three guiding principles: non-violence, compassion, and avoiding addictive products. Finally, the remaining eligible companies form the BSE Saatvik 100 Index.
How Is the BSE Saatvik 100 Index Different from Shariah and ESG Indices?
Shariah indices usually exclude companies involved in interest-based financial activities. However, the BSE Saatvik 100 Index follows a different selection approach. It focuses on Saatvik principles instead of excluding financial services. As a result, financial companies remain part of the index if they meet its eligibility criteria.
Which Sectors and Companies Have the Highest Weight in the BSE Saatvik 100 Index?
The financial sector holds the highest weight in the BSE Saatvik 100 Index. Next, the consumer goods and energy sectors account for significant weights. Major holdings include HDFC Bank, ICICI Bank, Reliance Industries, Bharti Airtel, and Larsen & Toubro. However, BSE reviews the index periodically, so constituent weights may change over time.
How Has the BSE Saatvik 100 Index Performed?
The BSE Saatvik 100 Index uses 20 June 2005 as its base date and 1,000 as its base value. As of 29 May 2026, its annualized 3-year return was 12.22%. Likewise, the annualized 5-year return stood at 11.11%. The annualized 10-year return reached 13.70%. Past performances do not necessarily guarantee future returns or performance.
BSE Saatvik 100 at a Glance
| Detail | Information |
|---|---|
| Launch Date | 17 June 2026 |
| Base Date and Value | 20 June 2005, base value 1,000 |
| Universe | Selected from the BSE 500 |
| Rebalancing | Every June and December |
| 3-Year Return (Yearly) | 12.22%, as of May 2026 |
| 10-Year Return (Yearly) | 13.70%, as of May 2026 |
How Can You Invest in the BSE Saatvik 100 Index?
Currently, the BSE Saatvik 100 Index serves as a benchmark index. However, asset management companies (AMCs) may launch ETFs, index funds, or other products based on it. Once available, investors can access these products through eligible investment platforms. If listed, you can also invest through the Navia All-in-One App.
Conclusion
The BSE Saatvik 100 Index introduces an ethical approach to index construction in India. It selects companies using defined eligibility criteria instead of only market size. Unlike many Shariah indices, it can include eligible financial companies. Past performances do not necessarily guarantee future returns or performance. Investors should evaluate their financial goals and risk tolerance before making investment decisions.
Key Takeaways
- The BSE Saatvik 100 Index is India’s first ethical index, launched by the Bombay Stock Exchange (BSE) on 17 June 2026 and drawn from the BSE 500.
- It applies Saatvik principles of non-violence, compassion and avoiding addictive products, excluding alcohol, tobacco, gambling, weapons, meat, leather and animal harm.
- Unlike many Shariah indices, it can include eligible financial companies; the financial sector carries the highest weight, followed by consumer goods and energy.
- The index is rebalanced every June and December, so its constituents and their weights can change over time.
- You cannot invest in the index directly yet; if AMCs launch ETFs or index funds on it, it helps to understand how ETF pricing works first.
- To judge the companies inside any index, pair index-watching with the must-know stock market ratios.
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Frequently Asked Questions
What is the BSE Saatvik 100 Index?
BSE introduced the BSE Saatvik 100 Index as India’s first ethical index. It tracks 100 eligible companies selected from the BSE 500 Index using defined eligibility criteria.
How are companies selected for the BSE Saatvik 100 Index?
BSE selects companies from the BSE 500 Index. It excludes businesses involved in activities that do not meet the index’s eligibility criteria, including alcohol, tobacco, gambling, weapons, meat, leather, and animal harm.
Does the BSE Saatvik 100 Index exclude banks like Shariah indices?
No. Unlike Shariah indices, the BSE Saatvik 100 Index can include eligible financial companies because it follows different eligibility criteria.
How often does BSE rebalance the BSE Saatvik 100 Index?
The BSE Saatvik 100 Index undergoes rebalancing twice a year. The scheduled reviews take place in June and December.
What are the top holdings in the BSE Saatvik 100 Index?
Based on the latest available data, HDFC Bank, ICICI Bank, Reliance Industries, Bharti Airtel, and Larsen & Toubro rank among the largest holdings by weight. However, these weights may change after each index review.
Can I invest directly in the BSE Saatvik 100 Index?
No. Currently, you cannot invest directly in the BSE Saatvik 100 Index. However, you may invest through ETFs, index funds, or similar products if they become available.
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