BSE launch a new index – BSE IPO index

admin — Mon, 24 Aug 2009 18:34:05 +0000

Bombay Stock Exchange today announced the launch of BSE IPO index to track the value of stocks for two years after listing. Robust growth of the Indian economy at 6.7% in 2008-09, and the expectation of higher growth in the future are expected to boost the primary market. For this and other reasons, it is an appropriate time to introduce to the market an indicator that will track primary market conditions in the Indian capital market, BSE said in a statement.

The BSE said its IPO index will track companies which have a free-float market capitalization of at least Rs. 1 billion ($21 million) on listing day. The index that started on Monday has 48 stocks and it will have at least 10 stocks at any point of time, with the maximum weighting for a stock capped at 20 percent, it said.

The base date of the index is May 3, 2004 and the base value was set at 1000 points, the BSE said.

The benchmark 30 share index has gained nearly 60 percent so far this year.

Stock Tips » BSE

BSE launch a new index – BSE IPO index