On biannual basis, the NSE reviews itsNSE 30, NSE Lotus Islamic Index (NSE LII) and the five Sectoral Indices, which include: the NSE Banking, the NSE Consumer Goods, the
The composition of the indices is expected to take effect today (
On the NSE 30 Index,
The review saw
On the NSE Insurance Index, two firms -
In a statement communicating the changes, the Index Committee explained that the NSE-30 and NSE Industrial Indices are modified market capitalisation indices with the numbers of included stocks fixed at 30 and 10 respectively, while the numbers of included stocks in the NSE-Consumer Goods, Banking, Insurance and Oil/Gas Indices are 15, 10, 15 and seven in that order.
The stocks are selected based on their market capitalisation from the most liquid sectors. The liquidity is based on the number of times the stock is traded during the preceding two quarters. To be included, the stock must be traded for at least 70 percent of the number of times the market opened for business.
The NSE began publishing the NSE 30 Index in
The sectoral indices comprise the top fifteen most capitalised and liquid companies in the insurance and consumer goods sectors, top ten most capitalised and liquid companies in the banking and industrial goods sector and the top seven most capitalised and liquid companies in the oil & gas sector.
The Committee stated that all the companies that appear on the Islamic Index have been thoroughly screened by
The price indices, which were developed using the market capitalisation methodology, are rebalanced on a biannual basis -on the first business day in January and in July.
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