BSE Greenex index, the new 20 share index launched today, is dominated by large cap firms from Banking, capital goods and pharma sectors.
Minister of Corporate Affairs, Veerappa Moily marked the launch of Greenex by ringing the bell at the Bombay Stock Exchange.
ICICI Bank, SBI, HDFC, Sun Pharma and BHEL are the major constituents. Though the exchange has said eligible companies from BSE 100 will be included, the initial lot comprises only of big names. Only a handful of companies out of the benchmark Sensex index have qualified for a berth in the index which tracks the “carbon- performance” of companies.
“The BSE-GREENEX Index is a veritable first step in creating a credible market based response mechanism in India, whereby both businesses and investors can rely upon purely quantitative and objective performance based signals, to assess “carbon performance”,” the exchange said.
The new Index includes the top 20 companies which are good in terms of Carbon Emissions, Free-Float Market Capitalization and Turnover. gTrade Carbon Ex Ratings Services (gTrade) has co-developed the BSE-GREENEX Index in close association with the BSE. The index will help create viable market based solutions for industries, investors and governments, to promote energy efficient practices and encourage impact investing in economically and environmentally sustainable businesses, official communication said.
The Index is a Free-Float Market Capitalization weighted Index comprising from the list of BSE-100 Index, BSE said. The Index has been back-tested from 1st October, 2008 (Base Date) with the base index value of 1000. The Index is rebalanced on a bi-annual basis i.e. end of March and September quarters. The September quarter review will be based on the fresh set of carbon emission numbers and the March quarter review will be based on the existing carbon emission numbers but latest financial data.