BSE & NSE INDICES

PRESENTED BY : AJIT RUNWAL

INTRODUCTION

WHY IMPORTANT..??
The stock market Index is a convenient and effective product due to the following reasons: 1. 2. 3. 4. 5. 6. Acts as a BAROMETER for Market Behaviour Benchmark of Portfolio Performance Allocates Scarce Resources to the Best Performed Companies Forecasting Tool Used in Derivative Instruments Used for Passive Fund Management

HOW CALCULATED..??

MAJOR INDIAN INDICES

1. BOMBAY STOCK EXCHANGE INDICES 2. NATIONAL STOCK EXCHANGE INDICES

1. BSE INDICES
Following are the Major BSE Indices: A. B. C. D. E. F. G. H. Sensex BSE National Index BSE 200 Dollex BSE 500 IPO Index Green Index BSE Greenex Carbon Index

A. SENSEX
Term Coined by Deepak Mohoni a stock market analyst. It is Sensitivity Index. The base year is April 79 with base value as 100. It was launched on 2nd January, 1986. Originally composed of 30 Companies. Available Online BOLT. Some Companies trading in Sensex are Bharti Airtel, Cipla Ltd, BHEL Ltd, Hero Motorcorp Ltd, Infosys Ltd, SBI etc.

B. BSE NATIONAL INDEX

It is Currently known as BSE-100. It was launched in January 03, 1989. The base year for this index is 1983-84 with base index value fixed at 100 points. BSE-100 was launched on full market capitalization method and shifted to Free-Float methodology effective from April 5, 2004. The index has 100 companies with varying weightages. Some Companies trading in BSE - 100 are Ambuja Cements Ltd, Asian Paints Ltd, Ashok Leyland, Exide Industries Ltd, DLF Ltd etc.

C. BSE - 200
Introduced in May 1994. The Base year is 1989 1990. It consists of Equity shares of 200 Companies selected on the basis of Market Capitalization, Volume of Turnover and Strength of the companies fundamentals. It comprises of scrips of both Specified and Non Specified groups. Some Companies trading in BSE - 200 are ACC, Adani Ports, Apollo Tyres, CRISIL, etc.

D. DOLLEX
It is nothing but BSE 200 expressed in Dollar Values. It is useful for Foreign Investors. In Dollex, the BSE 200 is modified by dividing the current rupee market value by Rupee Dollar Conversion Rate.

E. BSE - 500
It was introduced in 1999. The Base Year is 1999 itself. It is treated to be a standard index covering all sections of the economy as well as the major part of capitalization. Some Companies trading in BSE - 200 are ABG Shipyard, Alok Industries, Berger Paints, Finolex India, etc.

F. IPO INDEX

It aims at tracking the value of companies for two years from the date of their listing after their initial public offers. IPOs of companies with a free float market capitalization of INR 100 crore and above on its first day of listing would be included in the index. Some Companies trading in IPO are Bharti Infratel, Birla Pacific, Flexituff Inter, Just Dial, PC Jeweller, etc.

G. BSE GREENEX

It is First Index which is based on actual performance in the energy efficiency front. It has been co-developed with gTrade, a domestic sustainability firm working on financial innovations in energy efficiency. It gives equal weightage to both energy efficiency and profitability. From BSE 100, 20 Companies have been picked up. It is targeted at retail as well as institutional investors who look for investments in companies with strong long term projects and develop green financial products. Some Companies trading in BSE Greenex are Bharti Airtel, Bajaj Auto, BHEL, Hero Motorcorp, Reliance Infra, etc.

H. CARBON INDEX
BSE has launched Carbon index with the objective of offering investors expertise in analysing the risks and opportunities associated with climate change and with carbon regulation. Initially, all companies in the BSE top 100 will be eligible for inclusion in the carbon index. It is very useful to investors to mitigate their exposure to financial risks associated with climate change. Some Companies trading in Carbon Index are Bharat Forge, Axis Bank, Cairn India, Divis Labs, Crompton Greave, etc.

2. NSE INDICES
The common and popular name of the NSE Index is CNX Index. All NSC indices are prepared by the Indian Index Services and Products Ltd., (IISL) which is a joint venture of NSE, CRISIL and Standard Poor. The CNX stands for the following:
o o o C Stands for CRISIL N Stands for NSE X Stands for Index

Addition of the letters S&P with any index indicates that it is supported by Standard Poor also. Following are the Major CNX Indices: A. B. C. D. E. F. G. S&P CNX Nifty S&P CNX Diety CNX Nifty Junior S&P CNX 500 Equity Index CNX Midcap 200 Index CNX Segment Indices NSE Government Security Index

A. S&P CNX NIFTY

It was Introduced in April 96. Its Base Year 96 itself. It comprises of a well diversified 50 stock index accounting for 23 sectors of the economy. Of the total traded value of all stocks on the NSE, the total value of Nifty stocks is about 70 Per cent and Nifty Stocks represent about 59 Per cent of the total market Capitalization. Some of the Major Companies listed on this Index are Bank of Baroda, Grasim, HCL Tech, HUL, ITC, Infosys, etc.

CONCLUSION

ANY QUERIES..??

THANK YOU..!!