30-share BSE infrastructure index launched

The index will measure the performance of 30 leading companies from five infra sectors

Asia Index, a partnership of S&P Dow Jones Indices LLC and BSE, launched the S&P BSE Infrastructure index on Thursday.

Drawn from the S&P BSE-500, the index will measure the performance of 30 leading companies (by market capitalisation) from five infrastructure clusters: Energy, transportation, non-banking financial institutions, telecommunications and utilities.

Alka Banerjee, chief executive, Asia Index, said, "Investors in India want an infrastructure index that is not only transparent and diversified but also includes non-banking financial institutions that earn revenue from infrastructure financing. This, with India’s imminent announcement on its blueprint for infrastructure development, means interest in infrastructure could remain strong among Indian investors for many years."

The index follows a modified market capitalisation weighted scheme with base date as April 3, 2006. The weight of each cluster is capped at 30 per cent and individual stocks’ at 10 per cent.

The top-10 holdings in the index are IDFC, Bharti Airtel, Power Finance Corporation, Rural Electrification Corporation, NTPC, Power Grid, Adani Ports & Special Economic Zone, Bharti Infratel, Idea Cellular and Reliance Communications.