Mumbai, Aug 14: The Bombay Stock Exchange has given a big push to the information technology stocks by promoting 12 IT scrips to its coveted A group from the B1 group. In a major reshuffle of the A group, the BSE included 27 stocks to the list while dropping 26 from it. After reviewing the surge in trading volumes in these scrips, the exchange authorities on Friday evening decided to give a push to liquidity by including these stocks in the A group.The revised list is expected to boost the overall turnover on the exchange as the new scrips will now be eligible for carry forward business.
With the addition of 12 stocks, the IT industry is the most represented after healthcare. After the reshuffle, there are 19 healthcare stocks and 17 IT stocks in the A group.
IT stocks which makes to the A list are: Aptech, BFL Software, CMC, Fujitsu ICIM, HCL Infosystems, PSI Data Systems, Silverline Industries, Software Solutions, Tata Elxsi, Tata Infotech, Visual Software and Wipro.
Reliance Petroleum, Amar RajaBatteries, Navneet Publications, Indian Oil are among the additions. Some of these stocks have figured among the top 10 scrips by turnover in the B1 group in recent months. Silverline and HCL Infosystems have contributed significantly to the surge in the B1 group turnover over the last 15 days.
The overall turnover of the A group is expected to go up. After the reshuffle the market capitalisation of the 150 A group stocks has gone up to Rs 3,64,119 crore from Rs 3,22,989 crore. The A group has a 62.27 per cent share in the total market cap of Rs 5,84,788 crore of the exchange.
Stocks which have been dropped from the A group are: IFCI, Hindustan Motors, Essar Steel, Spic. Though Steel Authority of India Limited has been trading below par it still continues to have a place in the A group.
The index committee of the exchange selected the new scrips on the basis of market capitalisation, trading volume, number of trades and trading frequency. One of the criteria was that all the new inclusions in the Agroup should be part of the BSE-500 index.
BSE President Anand Rathi said, ``We expect the scrips in the A group to offer demat facility.'' They should be registered with both the depositories, CDSL and NSDL, within three months from the date of inclusion in A group, a BSE release said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.