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Overview of how the S&P BSE Metal Index reflects the performance of India’s leading metal sector companies and how it represents sector-level market trends.
Last updated on: January 30, 2026
The S&P BSE Metal Index is a sectoral index of the BSE that tracks the performance of listed companies primarily engaged in metal-related activities. The index reflects price movements across key metal producers in India and mirrors the influence of industrial demand, global commodity cycles, and sector-specific developments on listed metal stocks.
The S&P BSE Metal Index comprises companies classified under the metal sector, including producers of steel, aluminium, copper, and related materials used in infrastructure, manufacturing, and industrial applications.
A sectoral index, like the S&P BSE Metal Index, focuses on stocks from a single industry or sector. Unlike broad-based indices such as the Sensex or Nifty 50, sectoral indices allow for focused tracking and analysis of specific parts of the market. This aids in identifying sector-specific trends and performance patterns.
Companies are selected based on factors such as sector classification, market capitalisation, liquidity, and free-float availability. The index composition is reviewed on a semi-annual basis in line with index methodology to ensure continued representation of eligible metal sector companies.
The S&P BSE Metal Index is a sector-specific benchmark designed to measure the performance of listed companies primarily engaged in metal-related activities. It follows a free-float market capitalisation; weighted methodology, where constituent weights are determined based on shares available for public trading rather than total outstanding equity.
The index represents a mix of large-cap and mid-cap metal companies operating across segments such as steel, aluminium, copper, and diversified metals, providing broad coverage of the metal sector. Constituents are reviewed and rebalanced on a semi-annual basis in accordance with BSE index methodology to account for changes in market capitalisation, liquidity, and sector classification.
As a cyclical sectoral index, its performance is closely linked to global commodity price movements, industrial and infrastructure demand, and broader macroeconomic conditions. The index is commonly referenced for sector-level analysis and as a benchmark for metal-focused mutual funds and exchange-traded products.
| Parameter | Details |
|---|---|
Developer |
S&P Dow Jones Indices |
Parent Index |
S&P BSE 500 |
Base Date |
February 1, 1999 |
Launch Date |
August 23, 2004 |
Base Value |
1000 |
Calculation Currency |
INR, USD |
Calculation Frequency |
Real-time |
Index Rebalancing |
Semi-annual |
Reconstitution Effective From |
Monday following the third Friday of June and December |
This structure allows the index to remain aligned with prevailing market conditions while maintaining consistency in methodology and sector representation.
The S&P BSE Metal Index represents a cross-section of listed metal sector companies in India, covering both large-cap and mid-cap firms. Constituents are selected from the broader S&P BSE 500 universe and are reviewed periodically to reflect changes in market capitalisation, liquidity, and sector classification.
Constituent weightage within the index is determined using the free-float market capitalisation method. Under this approach, only shares available for public trading are considered, excluding promoter and locked-in holdings. As a result, companies with a higher free-float market value exert a proportionately greater influence on index movements. The actual composition and individual weights may change following scheduled reviews or corporate actions.
| Company | Symbol | Weight (%) |
|---|---|---|
Tata Steel Ltd |
500470 |
35.2 |
JSW Steel Ltd |
500228 |
22.8 |
Hindalco Industries Ltd |
500440 |
18.4 |
Vedanta Ltd |
500295 |
8.7 |
NMDC Ltd |
526371 |
4.2 |
APL Apollo Tubes Ltd |
533758 |
3.1 |
Jindal Steel & Power Ltd |
532286 |
2.9 |
SAIL |
500113 |
2.5 |
Adani Enterprises Ltd |
512200 |
1.8 |
Hindustan Copper Ltd |
500088 |
0.4 |
The S&P BSE Metal Index uses a free-float market capitalisation-weighted method.
Formula:
Index Value = (Current Market Value of Constituents ÷ Base Market Capitalisation) × Base Index Value
Where:
Market Value = Share Price × Free-Float Shares
Base Value = A fixed value (e.g., 1000) on a base date
This methodology ensures that companies with more publicly traded shares have a higher impact on the index’s movement.
The metal sector is closely linked to industrial production, infrastructure activity, and global commodity demand. Movements in the S&P BSE Metal Index reflect aggregated price changes of listed metal companies and capture sector-level responses to macroeconomic conditions.
The index is commonly referenced as a performance comparator for metal-sector-focused mutual funds and exchange-traded products that follow similar classifications.
Index movements correspond with factors such as changes in global metal prices, domestic demand cycles, policy developments, and industrial output trends. Variations in index levels reflect shifts within the metal sector rather than individual company performance.
While the metal sector is known for its cyclical nature, the index has shown significant performance in phases of economic recovery and government-led infrastructure pushes.
| Year | Annual Return (%) |
|---|---|
2019 |
+9.2 |
2020 |
+18.4 |
2021 |
+53.6 |
2022 |
–3.2 |
2023 |
+27.1 |
2024 |
+15.5 |
2025 |
+29.2 |
The data illustrates historical volatility associated with commodity-linked sectors and reflects how sector performance has varied across different market cycles. Returns are indicative and based on historical index data.
The comparison below presents indicative long-term performance characteristics based on historical data over comparable periods. Volatility references relative price variability rather than a specific statistical metric.
| Index | 5-Year CAGR (%) | Volatility | Sectoral Focus |
|---|---|---|---|
S&P BSE Metal |
25.7 |
High |
Metals |
BSE Sensex |
12.6 |
Moderate |
Broad Market |
S&P BSE PSU |
10.9 |
High |
Govt-owned |
The metal sector exhibits structural characteristics that influence price movements across listed companies within the index.
Cyclicality: Demand and pricing are closely linked to economic cycles and industrial activity.
Commodity price sensitivity: Changes in global metal prices directly affect sector revenues.
Regulatory influence: Policies related to mining, exports, and environmental compliance impact sector operations.
Environmental factors: ESG requirements and climate regulations influence cost structures and long-term sector dynamics.
The S&P BSE Metal Index represents the collective performance of listed metal sector companies in India and reflects sector-level responses to industrial demand, commodity price movements, and policy developments. As a sectoral benchmark, the index provides a consolidated view of metal industry trends and highlights the cyclical and regulatory factors that shape price behaviour within this segment of the equity market.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Reviewer
The base date is February 1, 1999, with a base index value of 1000.
The index is reviewed and rebalanced semi-annually by the BSE.
Retail investors cannot invest directly in the S&P BSE Metal Index. Exposure to the index is available only through market-linked products such as mutual funds or exchange-traded funds that track its performance.
It reflects the performance of metal companies, which are sensitive to economic cycles and global commodity prices.
Companies such as Tata Steel, Hindalco Industries, and JSW Steel have historically featured among the higher-weighted constituents, based on their free-float market capitalisation at the time of index review.
The S&P BSE Index is a family of benchmark indices maintained by BSE in association with S&P Dow Jones Indices, designed to track the performance of specific market segments, sectors, or the broader Indian equity market based on defined eligibility and calculation methodologies.
The S&P BSE Metal Index is reviewed and rebalanced on a semi-annual basis. Reconstitution becomes effective on the Monday following the third Friday of June and December, in line with the index methodology prescribed by the index provider.
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