What Is the BSE Bharat 22 Index? Constituents, Weightage, Benefits and Risks
Blog by Aliceblue News Desk
24 September 2026
12 minutes
Many investors come across Bharat 22 while searching for a basket of public sector and government-linked stocks. The name can be confusing. Is it an index, a fund, or a stock? The BSE Bharat 22 Index is a benchmark that tracks 22 selected companies. The Bharat 22 ETF is the investment product that investors can buy and sell on a stock exchange.
This guide explains the BSE Bharat 22 Index, its companies, weightage, working method, benefits, risks, and the difference between Bharat 22 ETF and CPSE ETF.
Quick Answer
The BSE Bharat 22 Index tracks 22 selected companies from the Government of India’s disinvestment programme. It includes companies from central public sector enterprises, public sector banks, and selected SUUTI holdings. The index uses a modified market capitalisation method. Its methodology provides a 15% limit for one stock and a 20% limit for one sector. Investors can access the index through the Bharat 22 ETF.
Table of Contents
- What Is the BSE Bharat 22 Index?
- What Are the Bharat 22 Index Companies?
- How Does the BSE Bharat 22 Index Work?
- How Is Bharat 22 Weightage Calculated?
- How to Invest in Bharat 22 ETF
- Bharat 22 Index Example
- Key Features
- Advantages
- Risks and Limitations
- Bharat 22 ETF Versus CPSE ETF
- Tips for Beginners
- Common Mistakes
- Who Should Consider Bharat 22?
- Frequently Asked Questions
What Is the BSE Bharat 22 Index?
The BSE Bharat 22 Index is a stock market index that tracks 22 selected Indian companies connected with the government’s disinvestment programme. It includes companies from central public sector enterprises, public sector banks, and selected strategic holdings of the Specified Undertaking of the Unit Trust of India, also called SUUTI.
A stock market index is a group of securities used to measure the performance of a particular market segment. The Nifty 50, for example, tracks 50 large and liquid companies. The BSE Bharat 22 Index follows a smaller group selected under a government-linked investment theme.
You cannot buy the index directly. You can buy an exchange-traded fund that aims to follow the index. The Bharat 22 ETF is managed by ICICI Prudential Asset Management Company and trades on the stock exchange under the symbol ICICIB22. The ETF has the ISIN INF109KB15Y7.
Index and ETF difference
Term | Meaning |
BSE Bharat 22 Index | A benchmark that measures the performance of 22 selected companies. |
Bharat 22 ETF | A fund that aims to follow the BSE Bharat 22 Index. |
ETF market price | The price at which the ETF trades on the exchange. |
ETF NAV | The per-unit value of the securities held by the fund after expenses and liabilities. |
The ETF’s return may not exactly match the index return. Fund expenses, cash holdings, trading costs, corporate actions, and changes in the index can create a difference called tracking error.
What Are the Bharat 22 Index Companies?
The index comprises 22 stocks from the government’s disinvestment universe. The selection includes:
- Central public sector enterprises.
- Public sector banks.
- Selected strategic holdings of SUUTI.
- Other eligible companies covered by the current index methodology.
The companies may represent sectors such as:
- Banking and financial services.
- Oil and gas.
- Power.
- Mining and metals.
- Defence.
- Construction.
- Infrastructure.
- Consumer goods.
Current constituents and weightage
The latest available ICICI Prudential ETF Bluebook provides the following top holdings and sector figures as of 31 July 2026:
Company or sector | Weight |
Larsen and Toubro Limited | 15.50% |
ITC Limited | 14.36% |
NTPC Limited | 9.85% |
State Bank of India | 8.99% |
Power Grid Corporation of India Limited | 7.74% |
Financial services sector | 20.24% |
Oil, gas and consumable fuels sector | 20.03% |
Power sector | 19.91% |
Construction sector | 16.03% |
Fast moving consumer goods sector | 14.36% |
The same factsheet states that the index has 22 stocks and follows a modified market capitalisation method. It identifies the index universe as selected company stocks from CPSEs, public sector banks and SUUTI.
This table shows only the top five holdings and sectors reported in the factsheet. It is not a complete list of all 22 companies. The full constituent list and weights should be checked from the latest BSE index page or AMC factsheet before publication or investment.
Weights can change when share prices move. Therefore, a weightage table must always include its date.
How Does the BSE Bharat 22 Index Work?
1. Eligible companies are identified
The index starts with companies covered by the government’s disinvestment programme. These include CPSEs, public sector banks and selected SUUTI holdings.
2. Twenty-two stocks form the basket
The index selects 22 companies from the eligible group. It does not represent every public sector company in India.
3. The stocks receive different weights
Each company receives a percentage weight. A company with a 10% weight affects the index more than a company with a 2% weight.
4. Stock and sector limits are applied
The BSE FAQ states that the stock level cap is 15% and the sector level cap is 20%.
These limits are applied under the index methodology during the relevant review and rebalancing process. Actual market weights can move after the review because share prices change. This explains why a live or factsheet weight may not always appear exactly equal to the cap.
5. Share price changes affect the index
When the share prices of the companies rise, the index can rise. When several large holdings fall, the index can fall even if smaller companies perform well.
6. The ETF follows the index
The Bharat 22 ETF invests in the securities that form part of the index and aims to hold them in a similar composition and weight.
How Is Bharat 22 Weightage Calculated?
The index uses a modified market capitalisation method. Market capitalisation means the total market value of a company’s shares.
The basic calculation is:
Market capitalisation = Share price×Number of shares
The index methodology uses publicly available shares, often called free float shares, when deciding the market value used for weighting.
A simplified weight calculation is:
Stock weight = Float-adjusted market value of one stock / Total float-adjusted market value of the index X 100
The methodology then applies the stock and sector limits.
You do not need to calculate the index value yourself. The simple point to remember is that larger companies usually affect the index more, unless the methodology limits their weight.
How to Invest in Bharat 22 ETF
You cannot purchase the index directly. You can buy Bharat 22 ETF units through a trading account and demat account.
Steps to buy the ETF
- Open a trading and demat account with a registered broker.
- Search for ICICIB22 on the exchange platform.
- Check the latest NAV and market price.
- Compare the buying price and selling price.
- Check trading volume and market depth.
- Use a limit order if the gap between the buying and selling price is wide.
- Review brokerage, exchange charges, and applicable taxes.
- Place the order only after checking whether the investment suits your time horizon.
The ETF is listed on BSE and NSE and trades like other listed securities. The NSE market data page identifies ICICIB22 as the ETF linked to the S&P BSE Bharat 22 Index.
Market price and NAV
Suppose the ETF NAV is ₹100 and the market price is ₹101. The ETF is trading at a ₹1 premium to NAV.
If the NAV is ₹100 and the market price is ₹99, it is trading at a ₹1 discount.
This difference can change during market hours because buyers and sellers decide the traded price.
Bharat 22 Index Example
Assume you invest ₹10,000 in an ETF for illustration. Assume the money is spread across four sector groups as follows:
Sector group | Assumed weight | Amount |
Banking and financial services | 20% | ₹2,000 |
Power and utilities | 20% | ₹2,000 |
Oil and gas | 20% | ₹2,000 |
Other sectors | 40% | ₹4,000 |
Total | 100% | ₹10,000 |
These figures are only for explaining the calculation. They are not the current Bharat 22 allocation.
Suppose the following changes take place over one year:
- Banking rises by 10%.
- Power rises by 5%.
- Oil and gas falls by 8%.
- Other sectors rise by 12%.
The estimated value becomes:
Sector group | Starting amount | Change | Ending amount |
Banking and financial services | ₹2,000 | 10% gain | ₹2,200 |
Power and utilities | ₹2,000 | 5% gain | ₹2,100 |
Oil and gas | ₹2,000 | 8% loss | ₹1,840 |
Other sectors | ₹4,000 | 12% gain | ₹4,480 |
Total | ₹10,000 | 6.2% gain | ₹10,620 |
The investment would be worth approximately ₹10,620 before expenses, taxes, and tracking differences.
This example shows why the index return depends on the combined performance of all its companies.
Key Features
- Twenty-two companies: The index tracks 22 selected companies.
- Government disinvestment connection: The companies are selected from the government-linked disinvestment universe.
- Different sectors: The basket can include banking, power, oil and gas, metals, construction and consumer businesses.
- Stock cap: The BSE FAQ states that the stock level cap is 15%.
- Sector cap: The BSE FAQ states that the sector level cap is 20%.
- Modified market capitalisation: Larger publicly traded companies generally receive higher weights, subject to the methodology.
- Annual review: The ICICI Prudential ETF Bluebook identifies annual rebalancing for the Bharat 22 ETF.
- Exchange-traded access: Investors can buy and sell ETF units during market hours.
- High risk category: The ETF factsheet classifies the product under high risk for investors’ principal.
Advantages of the BSE Bharat 22 Index
1. One product gives access to several companies
An investor can buy ETF units instead of placing separate orders for 22 individual stocks.
2. The basket covers different sectors
The index includes companies from more than one sector. This can reduce the effect of poor performance in one company, although it does not remove market risk.
3. Weight limits reduce concentration
The stock and sector caps limit the influence of one company or one sector under the index rules.
4. The method is rule-based
The ETF aims to follow a published index rather than relying on frequent stock selection by a fund manager.
5. It can suit long-term investors
The Bharat 22 ETF is described as a product for investors seeking long-term wealth creation and returns that closely correspond to the BSE Bharat 22 Index, subject to tracking error.
Risks and Limitations
1. Equity market risk
The value of the ETF can fall when the share prices of its holdings fall.
2. Concentration risk
The index has only 22 companies. A broad market index with more companies may spread risk across a larger number of businesses.
3. Government policy risk
Changes in regulation, ownership, energy policy, government spending or disinvestment plans can affect the companies.
4. Disinvestment supply risk
When the government sells part of its holding, more shares become available in the market. If buyers do not absorb the additional supply, the share price may remain under pressure.
5. Commodity price risk
Oil, gas, coal and metal companies can be affected by changes in commodity prices, demand and production costs.
6. Public sector business risk
Government-linked companies may have business or policy responsibilities that are different from those of privately managed companies. Their decisions may not always be based only on short-term profit.
7. Tracking error
The ETF may not deliver the same return as the index. The difference may arise from expenses, cash holdings, trading costs, corporate actions, index changes and market liquidity.
The July 2026 ETF Bluebook reports a one-year tracking error of 0.15% for Bharat 22 ETF as on 31 July 2026. This figure can change and should be updated before publication.
8. Liquidity risk
If the ETF has low trading volume, the difference between the buying and selling price may be wide. This can increase the cost of buying or selling.
9. No guaranteed return
The ETF is linked to equity markets. The scheme documents state that the investment objective may not be achieved and that the principal is at high risk.
Bharat 22 ETF Versus CPSE ETF
Both products focus on government-linked companies, but they do not follow the same basket.
Parameter | Bharat 22 ETF | CPSE ETF |
Main focus | Selected companies from the government disinvestment programme | Central public sector enterprises |
Number of companies | 22 | Depends on the CPSE index |
Company types | CPSEs, public sector banks and selected SUUTI holdings | Mainly CPSEs |
Sector mix | Banking, financial services, energy, power, construction and consumer goods may be included | More directly linked to CPSE sectors |
Weight rules | Bharat 22 stock and sector caps apply | Depends on the CPSE index rules |
Suitable for | Investors seeking the Bharat 22 disinvestment theme | Investors seeking direct CPSE exposure |
Neither product is automatically better. The choice depends on the type of companies and sectors you want in your portfolio.
Tips for Beginners
- Check the latest factsheet before relying on any constituent or weightage table.
- Confirm the date of all NAV, return, expense, and weightage figures.
- Compare the ETF market price with its NAV.
- Check trading volume and the bid-ask spread.
- Use a limit order when the spread is wide.
- Do not treat government ownership as a guarantee of safety.
- Do not invest money needed for near-term expenses.
- Avoid borrowing money to buy the ETF.
- Check your existing exposure to public sector, energy and infrastructure stocks.
- Compare tracking error and costs instead of looking only at past returns.
- Remember that an ETF purchase is different from an automatic mutual fund SIP.
- Read the latest scheme document before investing.
Common Mistakes
1. Buying because the unit price looks low
A low ETF price does not mean that the ETF is cheap.
Check the NAV, holdings, costs, and tracking difference instead.
2. Using an old company list
The companies and weights can change over time.
Check the latest BSE index information and AMC factsheet.
3. Confusing the index with the ETF
The index is a benchmark. The ETF is the product you buy.
Check the ETF’s market price, NAV, and costs before placing an order.
4. Ignoring the bid-ask spread
A wide spread can increase the cost of your trade.
Check market depth and consider a limit order.
5. Looking only at past returns
Past returns do not show what the ETF will earn in the future.
Review the risks, valuation, costs, and your investment time frame.
6. Treating 22 stocks as complete diversification
Twenty-two stocks provide some diversification, but the basket can still be concentrated in certain sectors.
Use the ETF as one part of your investment plan rather than your entire equity portfolio.
Who Should Consider Bharat 22?
Bharat 22 may fit investors who:
- Want a basket of selected Indian companies.
- Have a medium-term or long-term investment horizon.
- Can tolerate equity market losses.
- Prefer a rule-based investment product.
- Want exposure to the government disinvestment theme.
- Understand that some sectors may have a high combined weight.
It may not fit investors who:
- Need guaranteed returns.
- Need the money soon.
- Are uncomfortable with market volatility.
- Want exposure to the entire Indian equity market.
- Already have a large allocation to public sector and energy stocks.
Frequently Asked Questions
Blog by Aliceblue News Desk
