Assignment - 1

CAPITAL MARKET & INVESTEMENTS

On Constituents Of BSE 30 & NSE 50
Constituents of BSE 30 and NSE 50, their weightage, their free floats and industry representations.

Submitted To Mr. Ashish Arora

Submitted By Neetika Sharma MBA(TYC) - 3rd Sem. Roll No. - 405

BSE 30
Introduction
S&P BSE SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. The base year of S&P BSE SENSEX was taken as 1978-79. Since September 1, 2003, S&P BSE SENSEX is being calculated on a free-float market capitalization methodology.

Company Name
ITC Reliance Industries Infosys HDFC HDFC Bank TCS ICICI Bank Larsen & Toubro Hindustan Unilever ONGC Tata Motors Bharti Airtel SBI Sun Pharma Inds. Mahindra & Mahindra Dr Reddys Lab Wipro NTPC Bajaj Auto Cipla Hero MotoCorp Maruti Suzuki Coal India GAIL India Tata Steel

Conglomerate Oil and gas Information Technology Consumer finance Banking Information Technology Banking Conglomerate Consumer goods Oil and gas Automotive Telecommunication Banking Pharmaceuticals Automotive Pharmaceuticals Information Technology Power Automotive Pharmaceuticals Automotive Automotive Metals and Mining Oil and gas Steel

Industry Representation

Weightage in index
11.40 9.33 9.09 7.27 7.24 6.85 6.24 4.13 4.10 3.57 3.43 2.82 2.80 2.78 2.46 1.75 1.73 1.73 1.63 1.28 1.15 1.13 1.02 0.96 0.84

Free Float Index

0.7000 0.5500 0.8500 0.8000 1.0000 0.3000 1.0000 0.9000 0.5000 0.2500 0.7000 0.3500 0.4000 0.4000 0.7500 0.7500 0.2500 0.2500 0.5000 0.6500 0.4500 0.5000 0.1000 0.4000 0.7000
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Tata Power Hindalco Sterlite Inds. (I) BHEL Jindal Steel & Power

Power Metals and Mining Metals and Mining Electrical equipment Steel and power

0.74 0.72 0.67 0.60 0.51

0.7000 0.7000 0.4500 0.3500 0.4500

Free-float methodology refers to an index construction methodology that takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in the index. Free-float market capitalization takes into consideration only those shares issued by the company that are readily available for trading in the market. It generally excludes promoters holding, government holding, strategic holding and other locked-in shares that will not come to the market for trading in the normal course.

Analysis & Interpretation

This is observed from the above table that ITC has the highest weightage index value (11.40) and the Jindal steel & power has the lowest weightage index value (0.51). As far as the other companies are concerned, companies like reliance industries and Infosys have weighted index value of 9, whereas the companies like the HDFC and HDFC Bank have weighted index value of 7, which means that these companies shares are more traded on the BSE. As the Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market so with free float index factor it is easy to determine the number of shares that are available in the market for trading of particular companys share. As far as the companies of bse 30 are concerned, ITC has the 70% of the shares that are available in the market for trading. The highest free float factor is for the banks HDFC and ICICI Banks which have 100% shares available in market for trading. The lowest number of shares available in market for trading is of Coal India that is only 10%. In bse 30 Tatas has the diversification in various industries like TCS, Tata steel, Tata Power, Tata Motors out of which the TCS has the 6.85 weighted index value more than the other industries. The industry of Automotive dominate the other industries that are listed on bse 30 as more companies on bse 30 are from automotive industry. Companies whose shares are more traded on bse that is which have more weightage factor belong to the industry of mostly of Banking, Information Technology and conglomerate. Hence from the above table it is concluded that overall the Banking Sector has the more factor value in terms of free float and also this sector has good weightage index value.

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NSE 50
Company Name
ACC Ambuja Cement Asian Paints Axis Bank Bajaj Auto Bank of Baroda Bharti Airtel BHEL BPCL Cairn India Cipla Coal India DLF

Industry Representation
Cement - Major Cement - Major Paints/Varnishes Banks - Private Sector Automotive Banks - Public Sector Telecommunication Electrical equipment Refineries Oil Drilling And Exploration Pharmaceuticals Metals and Mining Construction & Contracting - Real Estate Pharmaceuticals Oil and gas Diversified Computers - Software Consumer finance Banking

Weightage in index
0.60 0.71 1.29 1.40 1.49 0.56 3.73 0.99 0.57 1.53 0.87 4.34 0.62

Free Float Index

0.5 0.5 0.5 0.6 0.5 0.5 0.3 0.3 0.5 0.3 0.6 0.1
0.2

Dr Reddys Lab GAIL India Grasim Industries HCL Tech HDFC HDFC Bank

1.03 1.04 0.63 1.76 3.39 4.07

0.7 0.4 0.7 0.4 1.0 0.8

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Hindustan Unilever Hindalco ICICI Bank IDFC Indusind Bank Infosys ITC Jindal Steel & Power JP Associate Kotak Mahindra Bank Larsen & Toubro Lupin Mahindra & Mahindra Maruti Suzuki NMDC NTPC ONGC PNB Power Grid Corporation Ranbaxy Labs Reliance Industries Reliance Infra

Consumer goods Metals and Mining Banking Finance - Term Lending Institutions Banking Information Technology Conglomerate Steel and power Infrastructure - General Banking Conglomerate Pharmaceuticals Automotive Automotive Mining/Minerals Power Oil and gas Banking Power Generation/Distribution Pharmaceuticals Oil and gas Power Generation/Distribution

3.60 0.45 2.77 0.42 0.55 4.67 7.11 0.47 0.18 1.35 2.07 1.08 1.42 1.09 1.04 2.89 6.42 0.50 1.14 0.31 7.48 0.22

0.7 0.5 1.0 0.8 0.8 0.8 0.7 0.4 0.5 0.5 0.9 0.5 0.7 0.5 0.2 0.2 0.2 0.4 0.1 0.4 0.5 0.5

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SBI Sesa Goa Sun Pharma Inds Tata Steel Tata Power Tata Motors TCS Ultra Tech Cement Hero MotoCorp

Banking Mining/Minerals Pharmaceuticals Steel Power Automotive Information Technology Cement Automotive

3.11 0.29 3.11 0.53 0.54 2.53 9.76 0.4 0.97

0.4 0.4 0.4 0.7 0.7 0.6 0.3 1.0 0.5

Analysis & Interpretation

This is observed from the above table that TCS has the highest weightage index value (9.76) and the JP Associate has the lowest weightage index value (0.18). As far as the other companies are concerned, companies like Reliance Industries (7.48), ITC (7.11), ONGC (6.42) and Infosys (4.67) have the good weighted index value, whereas the companies like the Coal India and HDFC Bank have weighted index value of approximately 4.34 & 4.07 respectively, which means that these companies shares are traded on NSE 50 with reasonable weightage. In NSE 50 also Tatas has the diversification in various industries like TCS, Tata steel, Tata Power, Tata Motors out of which the TCS has the 6.85 weighted index value more than the other industries. As the Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market so with free float index factor it is easy to determine the number of shares that are available in the market for trading of particular companys share. As far as the companies of NSE 50 are concerned, Coal India and the Power Grid Corporation has only 10% of the shares that are available in the market for trading. The highest free float factor is for the banks HDFC, ICICI Banks & Ultra Tech Cement which have 100% shares available in market for trading. The Banking sector dominate the other industries that are listed on NSE 50 as more companies on NSE 50 are from banking industry. Companies whose shares are more traded on NSE that is which have more weightage factor belong to the industry of mostly of Banking, Information Technology and conglomerate.
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