bse india launches new real estate index

8/2/2019 BSE India Launches New Real Estate Index

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BSE India launches New Real

Estate Index

The Bombay Stock Exchange (BSE), founded in 1875 with 318 members, isthe barometer of the Indian stock market. Located at Dalal Street in the

central business district of Mumbai, the stock exchange accounts for amarket capitalization of nearly USD 1 trillion.

In 1986 BSE introduced SENSEX (SENSitive indEX) comprising of 30 wellestablished Indian companies with the base year 1978 79. It is one of the

indices the financial world tracks regularly. Since September 2003, freefloat market capitalization methodology is followed. In full marketcapitalization methodology, the total market capitalization of a company,(including those held by promotors, government agencies etc.), is taken into

consideration for computation of an index. But in free float methodology,market capitalization is computed as the proportion of total shares issued by

the company, which are readily available for trading in the market. Itnormally excludes promoters' holding, central/state governments holding,

strategic holding and other locked in shares, which cannot be traded in themarket.

BSE has introduced several indices so far. These include:

BSE 100

BSE 200

BSE Dollex 200

BSE 500

BSE PSU

BSE Midcap

BSE Small cap

BSE Bankex

BSE Teck

BSE Auto


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BSE Healthcare

BSE Fast Moving Consumer Goods

BSE Consumer Durables

BSE Metal

BSE 100 comprises of 100 major stocks listed at five major stock exchangesin India at Mumbai, Kolkata , Delhi , Ahmedabad and Chennai. The mid cap

and small cap indices represent relatively smaller companies. The teck indexincludes IT, media and telecom stocks.


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Real estate prices, both residential and commercial, have soared up in thelast few years in India due to huge demand. Very strong growth has been

witnessed in this sector. Many domestic and international investors havebeen attracted by the Indian real estate industry. More growth is anticipated

in the sector since the real estate market capitalization in India is 4.2%where as global norm is 15%.

Several real estate companies have come up with IPOs.

On July 9, 2007 BSE had introduced yet another index The BSE RealtyIndex comprising of real estate stocks.

The base year for the index is 2005 and base index value is 1000. Like theSensex, this index is also computed using free float methodology. 11 scripsare included in the Realty Index, representing about 95% marketcapitalisation of real estate development companies in BSE - 500 index. On

July 9, the index value was reported to be 7333.97.

The following table shows the list of 11 companies, their free float marketcapitalization and weightage in the Realty Index.

Company Free float

market

capitalization

(Rs. Crores)Weightage

(%)

DLF Limited 14,542.01 35.94Unitech Limited 12,773.71 31.57

Indiabulls Real Estate Limited 5,639.65 13.94

Parsvnath Developers Limited 1,375.80 3.40

Ansal Properties & Infrastructure Limited 1,213.38 3.00

Mahindra Gesco Developers Limited 1,096.16 2.71

Sobha Developers Limited 1,011.35 2.50

Anant Raj Industries Limited 890.13 2.20

Phoenix Mills Limited 725.06 1.79

Peninsula Land Limited 707.12 1.75Akruti Nirman Limited 489.84 1.21

Total free float market capitalization: Rs. 40,464.21 crores

Total market capitalization: Rs. 179,499.70 crores


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The following table gives the yearly historical stock prices of the constituentstocks. (Source: BSE web site,www.bseindia.com)

Company 31/03/04 31/03/05 31/03/06 31/03/07 Current

AKRUTI 405.85 499.90

ANANTRAJ 15.82 693.50 1103.45 1299.00

ANSALINFRA1

19.70 111.95 721.30 527.50 311.45

DLF 590.45

GESCOCORP 21.05 122.45 462.20 568.30 558.20

IBREALEST 298.10 501.40

PARSVNATH 259.00 383.25

PENINLAND 34.25 132.40 661.25 371.70 484.75

PHOENIXLTD2

1134.15 6105.00 976.25 1603.50 2009.75

SOBHA 800.70 955.00UNITECH 3 85.05 337.35 2785.45 387.35 542.40

1 Price adjusted in November 2006 2 Price adjusted in December 2005

3 Price adjusted in June 2006

ANSALINFRA, GESCOCORP, PENINLAND and UNITECH have performed verywell in the bull market. GESCOCORP touched a high of 1300 in May 2006 but

has fallen considerably since then.

Todays intraday chart of Realty Index is plotted below, with Sensex by itsside as a comparison.
http://www.bseindia.com/http://www.bseindia.com/http://www.bseindia.com/http://www.bseindia.com/


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bse india launches new real estate index

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