Sensex Composition in 2010

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Topic: Sensex Composition in 2010

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basant
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Posted: 05/Jun/2007 at 4:35pm

Originally posted by smartcat

we should see representation from Retail, and media

Pantaloon should definitely make it to the index - but it might not happen in 2010. TV18 can become a giant cap and get a sensex entry ONLY IF Web18 starts generating serious revenues. NW18 will never get an entry - because it is mostly a holding company.

It's sad we don't have our own Walt Disney or Time Warner or News Corp yet.

GBN has all the characteristics to make an Indian Time warner (not on that scale) though.

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xbox
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Posted: 05/Jun/2007 at 7:31pm

Loss of IT in index and inclusion of few real estate, retail, petro, financial companies are expected.

Don't bet on pig after all bull & bear in circle.

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smartcat
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Posted: 05/Jun/2007 at 10:41pm

Some of the Nifty stocks like Suzlon, ABB and Siemens might make an entry in 2010 if the current growth rate in capital goods space sustains. Suzlon is almost a Rs. 40,000 crore company.

If financial companies make it to the Sensex, then it will probably be lead by Reliance Capital. However, I feel that, like Pantaloon, it will make an entry into the Sensex only later - not by 2010. Because there are lots of faster growing large companies.

Idea Communications is a low profile stock which can barge into the Sensex. It has a current market cap of around Rs. 30,000 crores. If it buys BPL mobile or merges with Spice Tele, it will definitely go places.

Along with DLF, other future IPOs like Vodafone Essar, Hyundai Motors or Oil India mess up the calculations a bit.

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basant
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Posted: 05/Jun/2007 at 10:03am

Index weightages are assigned on the basis of industry representation so while Pantaloon could find it easier (represent the retail sector) idea has a Bharti waitinmg in the Index for competition.

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smartcat
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Posted: 05/Jun/2007 at 11:50am

This I didn't know - I always thought the Top 30 market cap companies, irrespective of their sector, make an entry into the Sensex.

Do indices have some kind of guidelines as to allow only X number of companies from a particular sector? Note that there are already 4 software companies in Sensex (Infy, TCS, Wipro, Satyam)

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basant
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Posted: 06/Jun/2007 at 1:03pm

These four have become very big now if you include companies on the basis of mkt cap only the index will lose its broad based approach!

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go4lalit
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Posted: 06/Jun/2007 at 8:20pm

I do not think the sensex composition is based on Industry reprentation. Otherwise we would had Zee in the sensex. Media now has no reprentation in sensex. It is purely based on free float market cap.

Link to free float cap.

I see Bajaj(due to spin off), Hero Honda and Rel Energy going out of Sensex. Who will come in will depend on free float ... DLF/Unitech/Suzlon/Idea are strong candidates. Other companied I do not know abt free float.

Edited by go4lalit - 06/Jun/2007 at 8:22pm

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kulman
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Posted: 06/Jun/2007 at 10:43pm

How about the merged entity of AirIndia+Indian Airlines in sensex by 2010?

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