Infosys,Wipro May Be Taken Into Sensex

The Bombay Stock Exchange will finalise the new composition of the 30-share BSE sensitive index today. The exchange's index committee held a three-hour long meeting to discuss the issue. It is likely to introduce four changes in the current index.

While the committee members remained tightlipped on which scrips would find their way in, sources say the committee is debating the recast.

The panel is likely to introduce four stocks in the sensex and delete four others, keeping the number of scrips in the sensex constant at 30.

The committee will take into account introduction of two software stocks, from among Wipro, Infosys Technologies, Pentafour and NIIT, with the first two being front-runners.

Two other stocks, including one from the pharmaceuticals sector will also be included in the sensex, sources added.

The committee met yesterday and drew up a a shortlist of 15 to 20 stocks from the software, fast-moving consumer goods (FMCGs) and pharmaceuticals sectors to be considered for entry into the sensex.

The four scrips which might lose their place in the sensex include SAIL and Arvind Mills, sources said.

The index committee is expected to work out the parameters for selection of stocks in major indices.

This would be based on factors like market capitalisation, tradable value and liquidity in the markets.

The committee is not in favour of making frequent changes in the index. "There has to be a factor of continuity. If frequent changes are made in the index, it loses its character over a period of time,'' a source said.

Leading market players have been clamouring for the introduction of software stocks in the sensex for some time.

Market capitalisation as well as trading volumes of software stocks have seen a tremendous spurt in the past one year.

Scrips aspiring to figure in the sensex should have a minimum market capitalisation of Rs 1,200 crore and sufficient liquidity.

At present, Infosys has a market capitalisation of Rs 3,722.24 crore, NIIT of Rs 3,312.73 crore, Satyam Rs 1,546.23 crore, Wipro Rs 7,545.90 crore and Pentafour Software Rs 1,128.47 crore.

Recently, the National Stock Exchange had introduced software scrips in its revamped version of the index.

Infosys Technologies and NIIT are the two software scrips that are featured in the S&P CNX Nifty.