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BSE TECk Index
Introduction
The decade of 1990s saw the emergence of the TMT sector as a major force in the Indian economy. The remarkable growth of this sector was reflected in the financial markets.
Going by the trading pattern, around 19% of the turnover on the stock exchanges is taking place in TMT sector stocks. These stocks collectively account for 15% of the total market capitalization. The investment interest in technology stocks continues unabated.
Recognizing the growing importance of the TMT sector, BSE TECk index was launched in 2001.
Index Specification:
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Base Year |
April 02, 2001 |
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Base Index Value |
1000 |
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Date of Launch |
July 11, 2001 |
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Method of calculation |
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Number of scrips |
Variable as it aims to represent minimum 90% market capitalization from the universe of BSE-500 index |
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Index constituents |
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Index calculation frequency |
Real Time |
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Index calculation and maintenance |
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Index Reach |
Click here for scrip-wise, sector wise market capitalization, weightage etc. |
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Market Capitalization and Turnover Coverage |
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Historical Values of |
Index, Price Earnings, Price to Book Value ratio and Dividend Yield % |
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Historical Replacements |
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Historical Notices |
Click here to search historical notices on index replacements |
Scrip Selection Criteria for BSE TECk Index
Eligible universe
Scrips classified under information technology, media and telecom sectors that are present constituents of BSE-500 index form the eligible universe.
Trading Frequency
Scrips should have a minimum trading frequency of 90% in preceding three months.
Market capitalization
Scrips with a minimum of 90% free-float market capitalization coverage in each sector based on free-float final rank form the index.
Buffers
A buffer of 2% both for inclusion and exclusion in the index is considered so that movements in and out of the index are minimized. For example, a company can be included in the index only if it falls within 88% coverage and an existing index constituent cannot be excluded unless it falls above 92% coverage. However, the above buffer criterion is applied only after the minimum 90% market coverage is satisfied.
Note:
If an index constituent is traded under the 'Ex-Entitlement' basis it will be excluded from all BSE Indices. This is done because during this period BSE is unable to ascertain the valuation of the constituent and valuation of a constituent is required for Index calculation.
The company shall be included in the index after one calendar month of re-listing / from ex-entitlement date, subject to fulfillment of all Index eligibility criteria's.
