BSE & NSE BSE & NSE INDICESINDICES

PRESENTED BY :PRESENTED BY :

AJIT RUNWALAJIT RUNWAL

INTRODUCTIONINTRODUCTION

WHY IMPORTANT..??WHY IMPORTANT..??

• The stock market Index is a convenient and effective product due to the following reasons: -1. Acts as a BAROMETER for Market Behaviour2. Benchmark of Portfolio Performance3. Allocates Scarce Resources to the Best Performed Companies4. Forecasting Tool5. Used in Derivative Instruments6. Used for Passive Fund Management

HOW CALCULATED..??HOW CALCULATED..??

MAJOR INDIAN INDICESMAJOR INDIAN INDICES

1. BOMBAY STOCK EXCHANGE INDICES2. NATIONAL STOCK EXCHANGE INDICES

1. BSE INDICES1. BSE INDICES

• Following are the Major BSE Indices: -A. SensexB. BSE National IndexC. BSE 200D. DollexE. BSE – 500F. IPO IndexG. Green Index – BSE GreenexH. Carbon Index

A. SENSEXA. 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 INDEXB. 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 - 200C. 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. DOLLEXD. 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 - 500E. 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 INDEXF. 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 GREENEXG. 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 INDEXH. 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 INDICES2. 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 C Stands for CRISILo N Stands for NSEo 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. S&P CNX NiftyB. S&P CNX DietyC. CNX Nifty JuniorD. S&P CNX 500 Equity IndexE. CNX Midcap 200 IndexF. CNX Segment IndicesG. NSE Government Security Index

A. S&P CNX NIFTYA. 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.

CONCLUSIONCONCLUSION

ANY QUERIES..??ANY QUERIES..??

THANK YOU..!!THANK YOU..!!