What Is the BSE Saatvik 100 Index?

India already has indices for sectors, market caps, ESG themes and even smart beta strategies. On June 19, 2026, the BSE Index Services added something new: India's first Saatvik Index, the BSE Saatvik 100.

Some investors want to avoid putting their money into businesses they find ethically problematic. These are usually companies dealing in tobacco, alcohol, gambling or those associated with animal harm. The BSE Saatvik 100 gives those investors a ready-made, screened benchmark to invest in.

What Does ‘Saatvik’ Mean?

The term ‘Saatvik’ originates from Indian philosophical traditions and is often associated with purity, balance and non-harm. In the context of the BSE Saatvik 100, it refers to an investment approach that excludes businesses involved in certain activities deemed unethical.

The Logic Behind It

Most stock market indices simply pick companies by market size and liquidity. The BSE Saatvik 100 adds a screening layer to it. The index is derived from the constituents of the BSE 500 Index, one of India's broadest equity benchmarks, and then removes the companies that do not align with Saatvik principles.

This means companies associated with certain industries are excluded from the list before any selection happens. The excluded businesses include those associated with alcohol, tobacco, gambling, vulgar entertainment, narcotic substances, leather, meat and poultry, pesticides, insecticides and animal cruelty. The remaining constituents form the eligible universe from which the 100 companies are selected.

Similar logic applies to Shariah-compliant indices, which screen out interest-based businesses and certain industries. But the Saatvik framework is broader. Unlike traditional Shariah benchmarks that often restrict exposure to financial services companies, the BSE Saatvik 100 includes them, since the exclusions are focused on product-level harm rather than financial structures.

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Index Details

Although the BSE Saatvik 100 was launched in June 2026, it has a base value of 1,000, dated on June 20, 2005. The index will be reconstituted semi-annually every June and December. The back-dated start date means you can see how the index would have performed over the past two decades. This gives fund and product managers a track record to analyse before building products around it.

Sector Composition

Despite the exclusions, the index remains diversified across mainstream sectors. Financial services account for the largest share at around 37%, making it the dominant participant. Consumer discretionary and energy are the next largest components. Other significant sectors are commodities, industrials, utilities and telecommunications. The remaining allocation is spread across services, FMCG and healthcare.

Top Constituents of BSE Saatvik 100

As of June 2026, HDFC Bank is the largest constituent of the BSE Saatvik 100 with a weight of 9.71%. It is followed by ICICI Bank (7.69%) and Reliance Industries (7.65%). Other major holdings include Bharti Airtel, Larsen & Toubro, Infosys, State Bank of India, Axis Bank, Kotak Mahindra Bank and Mahindra & Mahindra.

The presence of these companies highlights an important aspect of the index: despite its ethical screening framework, the BSE Saatvik 100 includes many of India's largest and influential businesses. So effectively, it is still giving broad market exposure while excluding some companies that do not align with the stated principles. As a result, investors continue to get exposure to major sectors such as banking, technology, telecommunications, industrials and energy.

How Can Investors Use It

The BSE Saatvik 100 can be used as the basis for ETFs, index funds, PMS strategies and mutual fund schemes. No ETF or index fund tracking this benchmark has been launched as of June 2026, but the index itself is now available for fund houses to build products around.

Historical Performance

Although the BSE Saatvik 100 was launched in June 2026, it has a back-tested history starting from June 20, 2005. As of May 2026, it has delivered annualised returns of 12.22% over three years, 11.11% over five years and 13.70% over 10 years. It is important to note that these figures are based on back-tested data and should not be treated as a guarantee of future performance.

Is It Different From ESG Investing

Yes, it is. ESG investing evaluates companies based on environmental, social and governance parameters. A company can score well on ESG and still be a tobacco company if it manages its supply chain responsibly.

The Saatvik screen is product-based, not process-based. It removes entire business categories regardless of how well they are managed. The two frameworks can overlap, but are not the same thing.

Frequently Asked Questions

Is the BSE Saatvik 100 a Shariah-compliant index?

No. While both use exclusion-based screening, the Saatvik framework and Shariah screening principles differ.

Can I invest directly in the BSE Saatvik 100?

No. Investors can only invest through products such as ETFs, index funds, or other investment vehicles that may track the index.

Does the BSE Saatvik 100 include banks?

Yes. Unlike many Shariah-based indices, the BSE Saatvik 100 includes banks and other financial services companies.

Is the BSE Saatvik 100 an ESG index?

No. The index follows a product-based exclusion approach, whereas ESG investing evaluates environmental, social and governance factors.