BSE AllCap Index: Understanding Composition, Performance, and Investment Scope in 2025
Overview
The BSE AllCap Index is an extensive standard created by the Bombay Stock Exchange (BSE) to track the performance of India’s equity market across the large-cap, mid-cap, and small-cap segments. Unlike sectoral indices limited to specific industries, BSE AllCap spans all major sectors and accounts for nearly 95% of the total market capitalization of companies listed on the BSE.
Because of this wide coverage, the BSE AllCap index is widely regarded as India’s broadest market standard, helping investors, analysts, and policymakers assess the overall direction of the stock market.
Market Drivers and Key Influences
The performance of the BSE AllCap index is influenced by multiple economic and market factors like
Growth & Macroeconomics: GDP growth, inflation data, and urban consumption information.
RBI Policies: Decisions on repo rate and liquidity directly affecting company valuations.
Global Trends: Changes in FII activity, US Fed policy, and geopolitical risks.
Government Policies: Budget proposals, taxation changes, and reforms in infrastructure or manufacturing.
Domestic Liquidity: Rising SIP inflows from retail investors continues to strengthen market resilience.
Since it contains companies from various sectors, the index represents a hybrid reflection of investor confidence across both cyclical and defensive businesses.
Performance History and Wealth Creation Potential
BSE AllCap historical data served as a reliable indicator of long-term equity performance:
In FY 2022, the BSE AllCap index recovered sharply post-pandemic.
In 2023 , BSE AllCap index brought volatility, with FIIs booking profits on concerns over inflation and global interest rates.
By 2024–25, however, the BSE AllCap index returned to double-digit growth, supported by strong domestic earnings and government-led infrastructure push.
For investors, BSE AllCap index represents diversified exposure and serves as a standard for underlying many mutual funds, ETFs, and passive investment products.
Latest Trends and 2025 Outlook
As of August 2025, the index continues to trade on a positive note. Leading sector contributors are from banking, auto, IT, and capital goods companies, reflecting broad-based economic movement. Strong SIP participation from domestic investors has also helped the index withstand periods of foreign outflows
Risks and Challenges
The challenged faced by BSE AllCap index are
Over valuations - especially in the mid- and small-cap segment.
Vulnerability - to global geopolitical uncertainties.
Risk of volatility - if interest rates in developed markets rise again.
Despite these risks, most analysts view the long-term outlook of BSE AllCap as robust, supported by India’s position as one of the fastest-growing economies globally.
Structure and Coverage
The BSE AllCap index is divided into three key sub-segments:
Large Cap Segment – Top 100 companies by market cap.
Midcap Segment – Companies ranked 101–250 in BSE indices
SmallCap Segment – Companies ranked 251–500 in BSE indices
Weights are assigned based on free-float market capitalization, ensuring that larger and more liquid companies exhibit proportionately greater influence on the BSE AllCap index.
This structure makes BSE AllCap one of the most balanced market standards, constituting both market leaders and emerging businesses.
Performance Snapshot (as of August 2025)
The market capitalization of BSE AllCap index is Rs. 424 lakh crores. BSE AllCap index return for 1-Year is 14.8% approximately. While BSE AllCap index CAGR return for 5-Year is 11.6% approximately. The 52-Week High and low BSE AllCap price is Rs. 8,965 and Rs. 6920 as of June 2025. BSE AllCap index is currently traded at Rs. 8,640 approximately.
BSE AllCap index P/E ratio is around 22.7 and its Price-to-book value is 4.29. BSE AllCap index rendered a dividend Yield of about 0.8%.
Recent Returns Table
| Period | 1 Week | 1 Month | 1 Year | 3 Years | 5 Years |
|---|---|---|---|---|---|
| BSE AllCap | 6.4% | 8.9% | 14.8% | 49.3% | 139.5% |
| BSE Sensex | -0.36% | -1.56% | 1.78% | 46.1% | 113.7% |
Compared to many international indices, BSE AllCap has delivered superior long-term returns, reflecting India’s economic resilience.
Top Constituents of BSE All Cap Index
The top 10 constituent stocks of BSE AllCap Index are as follows
| Company | Approximate Weight |
|---|---|
| HDFC Bank Ltd | 3.65% |
| Bharti Airtel Ltd | 2.73% |
| Tata Consultancy Services | 2.61% |
| ICICI Bank Ltd | 2.43% |
| Reliance Industries Ltd | 2.31% |
| Infosys Ltd | 2.16% |
| ITC Ltd | 2.07% |
| State Bank of India | 1.93% |
| Bajaj Finance Ltd | 1.69% |
| Axis Bank Ltd | 1.53% |
Sector and Industry Diversification
BSE AllCap index gives exposure across sectors as follows:
Banks: 12.7%
Information Technology: 8.6%
Finance: 8.4%
Automobiles: 7.6%
Healthcare: 6.7%
Crude Oil: 6.4%
FMCG: 6.2%
Other sectors include Capital Goods, Power, Chemicals, Telecom, Insurance, and the rest.
This diversification ensures the index is not highly dependent on a particular industry, so it is a good surrogate for overall market mood.
Analysis Of Top 3 BSE AllCap Index Constituent Stocks
BSE AllCap combines firms from a broad list of industries: private and public sector banks, IT, refineries, pharma, NBFCs, power, telecom, insurance, personal care, engineering and construction, chemicals, autos, healthcare, retailing, FMCG, and the likes.
Let’s analyse the top three constituent stocks of BSE AllCap Index.
| Company | Bharti Airtel Ltd | HDFC Bank Ltd | Tata Consultancy Services |
| CMP Rs. | 1892.9 | 2003.65 | 3011.95 |
| P/E | 38.47 | 21.79 | 22.12 |
| Div Yield % | 0.85 | 0.55 | 1.99 |
| ROCE % | 13.48 | 7.51 | 64.63 |
| 1Yr return % | 27.55 | 22.76 | -31.81 |
| Debt / Equity | 1.88 | 6.41 | 0.1 |
| EV / EBITDA | 12.59 | 16.88 | 14.99 |
| 5Yrs return % | 29.18 | 13.44 | 5.94 |
| ROE % | 23.18 | 14.45 | 52.38 |
| Profit growth % | 147.11 | 3.53 | 3.54 |
Key Insights
Valuation & Returns
- Bharti Airtel has a high P/E that implies over valuation based on high profit growth. Its 1-year and 5-year returns are the best among the top three stocks, reflecting strong recent performance.
- HDFC Bank being a blue-chip banking stock, has a moderate P/E with consistent 1-year and 5-year returns which are consistent .
- TCS's P/E in same as HDFC Bank , but has negative 1-year return and significantly lower 5-year return , which reflects a tough recent experience.
Profitability, Efficiency & Yield
- TCS is most capital-efficient. Its ROCE and ROE are considerably higher, because of its minimal capital intensive and high-margin IT services business.
- Bharti Airtel's ROE is robust, with huge profit growth which points to robust business performance.
- HDFC Bank's ROE and ROCE are strong, though lower than the other two stocks.
- Dividend Yield is the highest for TCS , moderate for Airtel and the lowest for HDFC Bank .
Leverage & Risk Profile
- HDFC Bank reflects an extremely high Debt/Equity , typical of banks as a result of their lending business but increasing balance sheet risk.
- Bharti Airtel has high leverage , which mirrors telecom capital intensity.
- TCS is the most conservatively leveraged, with very low Debt/Equity, measuring low financial risk.
Growth
- Airtel's profit growth leaves HDFC Bank and TCS far behind, reflecting its turnaround and excellent operating execution.
- HDFC Bank and TCS have low profit growth, reflecting mature and fairly stable operations.
Valuation Ratios
Bharti Airtel quotes at 12.59 times, below HDFC Bank (16.88 times ) and slightly lower than TCS (14.9 times), despite stronger growth, which may reflect good risk-reward for growth investors.
Final Analysis
Bharti Airtel is sparkling with outstanding profit growth, good returns, and bettering finances, albeit with more leverage and premium pricing.
HDFC Bank is a symbol of long-term stability and continuity but is experiencing modest growth and efficiency relative to its peers.
TCS leads the way in profitability and efficiency parameters, has the highest dividend yield, and least leverage, but recent trends have been underwhelming, perhaps because of factors outside the control of the IT sector.
Why Investors Should Consider BSE AllCap Index
Broad Exposure: Represents nearly the entire equity market.
Diversification Tool: Protects portfolio from sector-specific declines.
Inflation Hedge: Equities tend to beat bonds during inflationary periods.
Long-Term Wealth Generation: A mighty vehicle to take a ride on India's growth story.
Easily Accessible: Investable through index mutual funds, SIPs, and ETFs using platform like Enrich Money.
Recommended Investment Strategy
- Invest in BSE AllCap indices as a core holding in a long-term equity portfolio.
- Invest 20–30% of equity holdings in this index for diversification advantage.
- Implement SIPs or staggered investment to reduce volatility risks.
Conclusion
The BSE AllCap Index is still the most comprehensive equity benchmark in India, reflecting the performance of firms in all market segments. Through its broad coverage, it gives investors and policymakers a nearly exhaustive representation of the Indian share market.
As of 2025, the index reflects robust growth led by domestic consumption, corporate strength, and increasing retail participation. Although global threats and elevated valuations would invoke near-term volatility, the wide breadth of BSE AllCap renders it a perfect proxy to invest in India's long-term growth story.
Frequently Asked Questions
What is the BSE AllCap index?
It covers firms in large, mid, and small categories, representing nearly 95% of India's stock capitalization.
How is it different from Sensex or Nifty 50?
Sensex and Nifty 50 include only blue-chip stocks, whereas BSE AllCap is more diversified, showing the performance of hundreds of firms from all industries.
What are the factors influencing its movement?
GDP growth, RBI interest rate decisions, corporate earnings, FII flows, and key government policies.
How do investors gain exposure to the BSE AllCap Index?
Investor exposure can be obtained through Platforms such as Enrich Money which provide such investment opportunities.
Is it appropriate for long-term wealth generation?
Yes. Due to its diversification across market segments, it is perfect for long-term growth in harmony with India's growing economy
Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.
