Calcutta, Mar 12: Calcutta Stock Exchange (CSE) proposes to introduce a new Sensitive Index, which can be correlated to popular indices like the Bombay Stock Exchange's Sensex and the National Stock Exchange's Nifty. The bourse wants to overcome the shortcomings of the present CSE index, which does not reflect major price movements "perceived by general investors."Accordingly, the new CSE-40 Sensitive Index will incorporate a basket of scrips representing the exchange's specified group and covering the major industry groups. The scrips selected are market leaders in their respective industries.
Another important selection criterion includes reasonably high market capitalisation, a good level of activity and investors' fancy in the scrips.
The index would be based on Standard & Poor's model with the year ending on March 31, 1996, as the base year. The base-year index would be equivalent to 2000.
Technical adjustments required for mergers, amalgamations, new securities introduced, bonus and rights issues would be based on the methodology followed by rating agency Crisil.
The new index would comprise ACC, Gujarat Ambuja Cement, ICI, Bajaj Auto, LML, Balarampur Chini, ITC Bhadrachalam, Bata, Larsen & Toubro, Tata Chemicals, Indian Rayon, BSES, CESC, Castrol, Colgate, HLL, EIH Ltd, Indian Hotels, Eveready Industries, GE Shipping, Glaxo, Hindalco, HDFC, ICICI, Telco, HPCL, RPL, Spic, Indo Gulf Fertilisers, Satyam Computers, IPCL, Reliance, Tisco, SAIL, ITC, Tata Tea, Mastershare, MTNL, SBI and Grasim.
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