MUMBAI, NOV 5: The Skindia GDR index, relaunched on Wednesday, will now comprise 20 actively traded GDRs. State Bank of India has been given the highest weightage at 13.65 per cent in the recast Skindia GDR Index. The index will be reviewed every quarter, making adjustments for bonus and rights issues.

For the second quarter of 1997 the Skindia GDR index would comprise Ashok Leyland whose weightage in the index will be 0.63 per cent, Bajaj Auto (5.58 per cent), BSES (2.50 per cent), EI Hotels (1.72 per cent), Grasim (2.06 per cent), Gujarat Ambuja (1.94 per cent), Hindalco (5.55 per cent), Indian Hotels (2.24 per cent), Indian Rayon (1.27 per cent), ICICI (2.37 per cent), IPCL (2.77 per cent), L&T (4.62 per cent), Mahindra & Mahindra (3.36 per cent), Ranbaxy Labs (2.57 per cent), Reliance (13.03 per cent), SAIL (6.45 per cent), SBI (13.65 per cent), Telco (8.81 per cent) and VSNL (8.39 per cent).

``The new index set with a base of January 2, 1995 (which is equal to 1,000), is dynamic and not constant,'' said Vishal Jain of Skindia Finance.

``Securities are selected based on the spreads between the bids and offers, ensuring a high level of liquidity in the index set at any given point of time,'' he added.

Another salient feature of the revamped index will be the market capitalisation of the stocks which will be taken into consideration for computing the index. Weightages of the stocks are based on the total market capitalisation (domestic equity plus GDR equity) of the company.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.