As of June 2022, the index constituents feature names such as Housing Development Finance Corp, Bajaj Finance Ltd, Bajaj Finserv Ltd, HDFC Life Insurance Company Ltd, SBI Life Insurance Company Ltd., Etc.
The top 10 stocks constitute nearly 72% weight in the index. In terms of industry breakup, NBFCs account for the majority with a weight close to 28%, followed by Life Insurance at 21% and Housing Finance companies accounting for 18%. The index is largely skewed towards large-cap companies accounting for 75% of the weight, while mid-cap companies account for the rest.
S&P BSE Financials Ex-Bank 30 Index has outperformed the S&P BSE 250 Large MidCap index over the last 15 years, on a total returns basis. The index has noted a CAGR of 15.3% vs S&P BSE 250 Large MidCap Index 14%, outperforming the broad market by more than 1%. It has also been observed that the index tends to do well during a bull and recovery cycle.
In India, except banks, the rest of the industries within the financial services sectors are highly under-penetrated when compared globally. These financial services companies operate in the business of Consumer Credit (Personal loans, Credit cards, Home loans), Insurance (Life & General), and Capital market (Exchanges, Credit rating agencies). With rapid urbanization & rising income levels, more people are expected to tap into these financial services, leading to the growth of these companies.