BSE Bankex is a stock market index that allows investors to invest in the banking sector. The BSE Bankex index specifically lists the stocks of the top 10 bank companies from the BSE 500 list. In this article, we will cover all you need to know about this banking index.
What is BSE Bankex?
The BSE Bankex index is a banking index on the Bombay Stock Exchange (BSE) and includes the top 10 banking companies. These 10 companies together account for over 90% of the market share of the banking industry.
This index was created back in 2003 to study the growth and impact of the banking sector in India. The different banks are ranked based on their market share and cover mostly the top 10 banks. The BSE Bankex companies include:
- AU Small Finance
- Axis Bank
- Bank of Baroda
- Canara Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IndusInd Bank
- Kotak Mahindra Bank
- State Bank of India
The list can change depending on the change in the market share of different banks. The BSE Bankex share price is 55,997.79.
Benefits of Bankex Trading
With an understanding of the BSE Bankex, let us now look at the key benefits of investing in the Bankex index. These include:
1. Diversification
Diversification is important to ensure that your investments have minimal risk. It shields you from individual asset price fluctuation by diversifying your investment into different company stocks.
As a result, even if one investment does not show fruitful returns, there is a possibility of others performing well which keeps you safe. BSE Bankex involves investing in the top 10 banks which means your investment is divided into 10 different stocks to minimize risk.
If you have stocks in other industries, it can help you diversify your stocks in the banking sector.
2. Sector-specific Exposure
The BSE index helps you focus on investing in a particular sector. As a result, you can benefit from the growth of the top banks. It helps make it simpler to align your portfolio with your goals. Additionally, you can invest in the sector that you prefer such as the top-performing banks.
3. Liquidity
The BSE Bankex is a valuable investment index that is highly liquid. This means that you can buy and sell positions any time you want at your desired price. This is an important consideration for traders who wish to enter and exit the market frequently.
4. Profit Potential
The banking sector is on a steady rise which makes it possible for you to make gains from the short-term market changes. By keeping an eye on the price fluctuations, you can benefit from investing in the BSE index. This increases your profit potential for long-term investments.
Conclusion
These benefits make BSE Bankex a viable investment choice for people looking to invest in the banking industry. They can benefit immensely from diversifying their portfolio.
Author Bio:
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Disclaimer: The content is for informational purposes only and shouldn’t be considered financial advice by Wire19.
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