June 26, 2026 03:36 am (IST)
Follow us:
Asia Index Private Limited launches S&P BSE Gold Hedged Indices
Mumbai, Apr 26 (IBNS) Asia Index Private Limited, a joint venture between S&P Dow Jones Indices and BSE, announced the launch of the S&P BSE SENSEX Gold Hedged Index and S&P BSE SENSEX Dynamic Gold Hedged Index, on Tuesday, to offset currency fluctuation risks.
The announcement clarified that 'these indices can serve as the basis of investment products such as ETFs that allow investors to benefit from the returns of the Indian equity market while hedging against a decline in the value of the Indian rupee versus gold'.
Alka Banerjee, CEO of Asia Index Private Limited, said, “As the Indian market is maturing, investors are seeking more innovative products that are designed to offer their own risk premia. Historically, gold and equities noted no correlation or very low correlation with each other. S&P BSE Gold Hedged indices are designed to provide gold exposure to the portfolio in a more capital efficient way."
The S&P BSE SENSEX Gold Hedged Index and S&P BSE SENSEX Dynamic Gold Hedged Index are designed to simulate the total returns of S&P BSE SENSEX with a hedge against the fluctuations of the Indian Rupee against gold. The hedge only protects against adverse movements in the relative value of the Indian rupee, as expressed in the rupee price of gold. Stock market risk is not hedged in any way.
The S&P BSE SENSEX Gold Hedge is calculated as a combination of a long S&P BSE SENSEX total return position and Gold Mini futures contracts on the Multi Commodity Exchange of India (MCX).
“We are excited to launch the S&P BSE Gold Hedge indices for our investors who are looking for more sophisticated products. This first-of-its-kind of index launched in India offers investors reaping a dual benefit of going long on Indian stock market bellwether, Sensex and hedging the fluctuation in Indian Rupee by taking position in Gold Mini futures contracts,” said Ashishkumar Chauhan, MD & CEO, BSE Ltd.
The S&P BSE SENSEX Gold Hedged Index is rebalanced monthly, during the one-day roll of the gold futures contracts to equalize notional exposure to equity and gold. The S&P BSE SENSEX Dynamic Gold Hedged Index is rebalanced monthly during the five-day roll of the gold futures contracts to adjust the notional exposure of equity and gold.
The S&P BSE SENSEX Gold Hedged Index and S&P BSE SENSEX Dynamic Gold Hedged Index are part of the S&P BSE strategy indices family.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Amazon's massive India bet! Andy Jassy announces $48 billion investment after meeting PM Modi
Thu, Jun 25 2026
Rajesh Exports crashes 5%! ED probe triggers fresh investor panic
Thu, Jun 25 2026
Oil prices crash, IndiGo takes off! Aviation and fuel stocks emerge as biggest winners
Thu, Jun 25 2026
Decentralizing Spending Without Losing Control - A Leader's Approach to Modern Expense Governance
Thu, Jun 25 2026
Adani stocks soar! Investors rush in after Gautam Adani unveils massive Rs 2 lakh crore expansion plan
Wed, Jun 24 2026