rediff.com
rediff.com
Money Find/Feedback/Site Index
      HOME | MONEY | STOCKS | MARKET TRENDS
March 11, 2000

Books
Columnists
Indian Tax
Insurance
Interview
Mutual Funds
NRI Tax
Personal Finance
Personal Banking
Real Estate
Stocks

E-Mail this report to a friend

Towards a clearer index

Aravamuthan Sasikant

Four new stocks would now be included in the Sensex with effect from April 1, 2000. IDBI, Indian Hotels, Tata Power and Tata Chemicals are out. Finding their way into the Sensex for the first time are Satyam Computer, Zee Telefilms, Reliance Petroleum and Dr Reddy's.

The replacement is very significant. Consider this: the combined market capitalisation -- as on March 10, 2000 -- of the four outgoing companies is about Rs 80 billion, whereas the market capitalisation of the four new entrants stands at a whopping Rs 1,070 billion. The total market capitalisation of the Bombay Stock Exchange is Rs 10,025.95 billion.

The new additions ensure that the BSE Sensex has become a much more representative sample. The outgoing stocks account for a mere 0.8 per cent of the BSE's total market capitalisation. The new entrants, however, account for more than 10 per cent of the BSE's market capitalisation. The Sensex, in its new avatar, will be a more representative sample of the market as it will now account for more than 40 per cent of the total market capitalisation of the Bombay Stock Exchange.

Satyam Computer has a market capitalisation of Rs 345 billion (Rs 34,500 crore), followed by Zee Telefilms with Rs 488 billion (Rs 48,800) crore, Reliance Petroleum with over Rs 200 billion (Rs 20,000 crore), and Dr Reddy's Laboratories with more than Rs 34 billion (Rs 3,400 crore).

The addition of Zee Telefilms had become necessary, as the Sensex did not have a representative from the entertainment sector. Satyam Computer's entry was essential as Infosys and NIIT together were not exactly the proper representative of the infotech sector. The addition of Reliance Petroleum -- Asia's largest grassroots refinery, seemed inevitable due to its sheer size.

The new additions Satyam Computer and Zee Telefilms will ensure that the volatility in the Sensex due to Infosys Technologies or HLL is reduced to a great extent.

table
OLD SENSEX STOCKS MKT. CAP.
(in Rs crs.)
NEW SENSEX
STOCKS
MKT. CAP.
(in Rs crs.)
INFOSYS 77468.80 INFOSYS 77468.80
HIND.LEVER 52470.48 HIND.LEVER 52470.48
ITC 21852.19 ZEE TELEFILMS 48810.40
RELIANCE 20519.31 SATYAM COMPUTERS 34440.00
MTNL 20160.00 ITC 21852.19
ICICI 11850.74 RELIANCE 20519.31
NIIT 9661.91 RELIANCE PETROLEUM 20271.25
SBI 9009.82 MTNL 20160.00
RANBAXY 7976.16 ICICI 11850.74
LARSEN & TOUBRO 6826.14 NIIT 9661.91
HINDALCO 4766.21 SBI 9009.82
IDBI 3964.51 RANBAXY 7976.16
CASTROL 3890.36 LARSEN & TOUBRO 6826.14
HPCL 3868.36 HINDALCO 4766.21
MAH & MAH 3736.39 CASTROL 3890.36
BSES 3637.09 HPCL 3868.36
GUJ.AMBUJA 3564.71 MAH & MAH 3736.39
BAJAJ AUTO 3486.21 BSES 3637.09
TISCO 3388.93 GUJ.AMBUJA 3564.71
NESTLE 3331.64 BAJAJ AUTO 3486.21
TELCO 3314.34 Dr.REDDY'S LABORATORIES 3422.51
GRASIM 3208.43 TISCO 3388.93
BHEL 3059.50 NESTLE 3331.64
GLAXO 2689.88 TELCO 3314.34
NOVARTIS 2548.93 GRASIM 3208.43
ACC 2263.70 BHEL 3059.50
INDIAN HOTEL 1240.66 NOVARTIS 2548.93
TATA POWER 796.40 ACC 2263.70
TATA CHEM 783.44 COLGATE 1924.30
Sensex mkt. cap.
(in Rs crs.)
297259.54   397418.70
Total BSE mkt. cap.
(in Rs crs.)
1002595   1002595
Sensex as % of total BSE mkt. cap. 29.65   39.64

 Market cap figures are as on March 10, 2000

Stocks

Tell us what you think of this feature

HOME | NEWS | BUSINESS | MONEY | SPORTS | MOVIES | CHAT | INFOTECH | TRAVEL
SINGLES | NEWSLINKS | BOOK SHOP | MUSIC SHOP | GIFT SHOP | HOTEL BOOKINGS
AIR/RAIL | WEATHER | MILLENNIUM | BROADBAND | E-CARDS | EDUCATION
HOMEPAGES | FREE EMAIL | CONTESTS | FEEDBACK

Disclaimer