The Bombay Stock Exchange (BSE) recently launched a new BSE Hospitals Index on October 3, 2025. This index not only tracks the performance of hospital stocks but also serves as a benchmark for investors to measure and compare their portfolio performance in the healthcare sector. It aims to provide a clearer picture of how listed hospital companies are performing within India’s expanding healthcare ecosystem.
India’s healthcare industry has been witnessing strong growth, driven by rising demand for quality medical care and the rapid expansion of hospital networks. Let us explore the index in detail.
What’s Happening?
BSE Index Services Private Limited, a wholly-owned subsidiary of the Bombay Stock Exchange, has introduced the BSE Hospitals Index. This index is designed to track the performance of listed hospital companies classified under the healthcare sector. Its constituents are drawn from the BSE 1000 Index, specifically including firms classified as ‘Hospital’ in the fourth level of BSE’s industry categorisation.
The index consists of 15 companies drawn from the BSE 1000 universe and follows a capped float-adjusted market capitalisation methodology for assigning weights. The index was created with a base value of 1,000, and its first value date is June 19, 2017. To ensure accuracy and representation, it is rebalanced twice a year, in June and December.
Key Performance Metrics of the BSE Hospitals Index
According to the press release, the BSE Hospitals Index has demonstrated strong performance as of September 30, 2025. Total returns (TR) over one year stood at 25.54%, over three years at 37.18%, and over five years at 40.40%. Since inception, the index has delivered a total return of 21.83%.
The annualised risk (standard deviation) shows moderate volatility, with 18.54% for one year and 25.43% since inception. Risk-adjusted return ratios indicate efficient performance, standing at 1.38 for one year and 0.86 since inception.
Top 10 Constituents by Weight in BSE Hospitals Index
The newly launched index consists of 15 stocks. Here are the top 10 stocks ranked by weightage:
What’s in It for Investors?
The launch of the BSE Hospitals Index gives investors a robust tool to track and participate in the growth of India’s hospital sector. According to BSE, the index can be used for passive investment strategies such as ETFs and index funds, as well as for benchmarking PMS strategies, mutual fund schemes, and institutional portfolios.
For asset managers, the index serves as a relevant benchmark for both active and passive strategies. Individual investors can gain focused exposure to the fast-growing hospital sector. By tracking the index through ETFs or index funds, investors can effectively participate in India’s healthcare growth story.
Wrapping Up
Historically, the BSE Hospitals Index has outperformed the S&P BSE Sensex. Over the past year, the Hospitals Index generated a return of 25.54%, compared to the Sensex’s 10.42% during the same period.
The BSE Hospitals Index is a timely addition to BSE’s growing suite of sectoral indices. With consistent performance and a well-diversified set of constituents, it is poised to become a key benchmark for healthcare-focused investments in the coming years.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
