BSE-500 Index and Sectoral Indices, Index Specification and Scrip selection criteria
Written by admin on June 17th, 2008 in Information, Investment.
BSE-500 Index and Sectoral Indices
Bombay Stock Exchange Limited has constructed a new index, christened as BSE-500, consisting of 500 scrips in its basket w.e.f. August 9, 1999 (announced on July 8, 1999 vide its press release). The changing pattern of the economy and that of the market have been kept in mind while constructing this index.
BSE-500 index represents nearly 93% of the total market capitalisation on Bombay Stock Exchange Limited. This means BSE-500 index ideally represents total market. This index represents all 20 major industries of the economy. In line with other BSE indices, effective August 16, 2005 calculation methodology was shifted to a free-float methodology.
Index Specification:
|
Base Year |
February 1, 1999 |
|
Base Index Value |
1000 |
|
Date of Launch |
August 9, 1999 |
|
Method of calculation |
Launched on full market capitalisation method and effective August 16, 2005, calculation method shifted to free-float market capitalisation |
|
Number of scrips |
500 |
|
Index Constituents |
|
|
Index calculation frequency |
15 seconds |
|
Index Reach |
Click here for scrip-wise, sector wise market capitalisation, weightage etc. |
|
Market Capitalisation and Turnover Coverage |
|
|
Historical Values for |
Index, Price Earnings, Price to Book Value ratio and Dividend Yield % |
|
Historical Replacements |
Selection of the Base Year and Base Index Value: The base date has been fixed after a detailed analysis of the relative volatility of BSE-200, the index closest to BSE-500, over the last 8 years. The coefficient of variation of BSE-200 for 1998-99 is one of the lowest in this period. Hence, 1998-99 is chosen as the base year, and within this, the date February 1, 1999 is selected as the base date for its proximity to the current period. The base value was fixed at 1000 points in order to keep the index comparable with other similar indices.
BSE-500 index - Scrip selection criteria:
The general guidelines for selection of constituents in BSE-500 are as follows:
1. Trading Frequency: The scrip should have been traded on 75% of the trading days in the last three months. Exceptions can be made for extreme reasons like scrip suspension etc.
2.Final Rank: The scrip should figure in the top 750 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalisation and 25% weightage to the liquidity rank based on three-month average daily turnover & three-month average impact cost.
3. Industry Representation: Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.
4. Track Record: In the opinion of the Index Committee, the company should have an acceptable track record.
Simultaneously, BSE also calculates various sectoral indices “Sector Series (90/FF)” as detailed below. All these indices are calculated and disseminated on BOLT, BSE’s trading terminal on a real time basis. “90/FF” implies that the index covers 90% of the sectoral market capitalisation and is based on the Free-Float methodology.
more at : http://www.bseindia.com/about/abindices/bse500.asp
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and the list had few more names..
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November 7th, 2008 at 12:49 pm
Dear Visitors,
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Now one can think of buying stocks for Long term.
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http://www.ShareTipsInfo.com Team
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