In this paper, we propose new neural activity indices for the solution of the inverse problem of localizing sources of cortical activity from electroencephalography (EEG) measurements. Such indices are based on reduced-rank beamformers, specifically the generalized sidelobe canceler (GSC), and with the purpose of suppressing the contribution of interfering sources and noise. Here, the GSC is modified with an adaptive blocking matrix (ABM) to optimally estimate and later suppress unwanted brain sources. With respect to the rank-reduction, this is achieved through the cross-spectral metrics (CSM) as they give a sense of the affinity of the beamformers’ eigenstructure to the orthogonal subspace of noise an interference. Based on that, two different neural indices are proposed for the assessment of brain activation. Our realistic simulations show that a more consistent source localization is achieved through the proposed indices in comparison to the use of the traditional full-rank approach, specifically for brain sources embedded in high background activity that originates at the brain cortex and thalamus. We also prove the applicability of our methods on the localization of sources on the visual cortex produced by steady-state visual-evoked potentials.