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BSE India launches New Real Estate Index
 The Bombay Stock Exchange (BSE), founded in 1875 with 318members, is the barometer of the Indian stock market. Located atDalal Street in the central business district of Mumbai, the stockexchange accounts for a market capitalization of nearly USD 1 trillion.In 1986 BSE introduced SENSEX (SENSitive indEX) comprising of 30well established Indian companies with the base year 1978 – 79. It isone of the indices the financial world tracks regularly. SinceSeptember 2003, “free float market capitalization” methodology isfollowed. In full market capitalization methodology, the total marketcapitalization of a company, (including those held by promotors,government agencies etc.), is taken into consideration for computationof an index. But in free float methodology, market capitalization iscomputed as the proportion of total shares issued by the company,which are readily available for trading in the market. It normallyexcludes promoters' holding, central/state governments’ holding,strategic holding and other locked in shares, which cannot be traded inthe market.BSE has introduced several indices so far. These include:BSE 100BSE 200BSE Dollex 200BSE 500BSE PSUBSE MidcapBSE Small capBSE BankexBSE TeckBSE AutoBSE HealthcareBSE Fast Moving Consumer GoodsBSE Consumer DurablesBSE MetalBSE 100 comprises of 100 major stocks listed at five major stockexchanges in India at Mumbai, Kolkata , Delhi , Ahmedabad andChennai. The mid cap and small cap indices represent relativelysmaller companies. The teck index includes IT, media and telecomstocks.
 
Real estate prices, both residential and commercial, have soared up inthe last few years in India due to huge demand. Very strong growthhas been witnessed in this sector. Many domestic and internationalinvestors have been attracted by the Indian real estate industry. Moregrowth is anticipated in the sector since the real estate marketcapitalization in India is 4.2% where as global norm is 15%.Several real estate companies have come up with IPOs. The IndiastreetanalyzedDLF,HDILIPOs andIndiabulls Real Estatestock in various articles.On July 9, 2007 BSE had introduced yet another index – The BSE RealtyIndex comprising of real estate stocks. The base year for the index is 2005 and base index value is 1000. Likethe Sensex, this index is also computed using free float methodology.11 scrips are included in the Realty Index, representing about 95%market capitalisation of real estate development companies in BSE -500 index. On July 9, the index value was reported to be 7333.97. The following table shows the list of 11 companies, their free floatmarket capitalization and weightage in the Realty Index.CompanyFree floatmarketcapitalization (Rs.Crores)Weightage(%)DLF Limited14,542.01 35.94Unitech Limited12,773.71 31.57Indiabulls Real Estate Limited5,639.65 13.94Parsvnath Developers Limited1,375.80 3.40Ansal Properties & Infrastructure Limited1,213.38 3.00Mahindra Gesco Developers Limited1,096.16 2.71Sobha Developers Limited1,011.35 2.50Anant Raj Industries Limited890.13 2.20Phoenix Mills Limited725.06 1.79Peninsula Land Limited707.12 1.75Akruti Nirman Limited489.84 1.21 Total free float market capitalization: Rs. 40,464.21 crores Total market capitalization:Rs. 179,499.70 crores
 
 The following table gives the yearly historical stock prices of theconstituent stocks. (Source: BSE web site,www.bseindia.com)Company31/03/0431/03/0531/03/0631/03/07CurrentAKRUTI405.85499.90ANANTRAJ15.82693.501103.45 1299.00ANSALINFRA
1
19.70111.95721.30527.50311.45DLF590.45GESCOCORP21.05122.45462.20568.30558.20IBREALEST298.10501.40PARSVNATH259.00383.25PENINLAND34.25132.40661.25371.70484.75PHOENIXLTD
2
1134.156105.00976.251603.502009.75SOBHA800.70955.00UNITECH
3
85.05337.352785.45387.35542.40
1
Price adjusted in November 2006
2
Price adjusted in December2005
3
Price adjusted in June 2006ANSALINFRA, GESCOCORP, PENINLAND and UNITECH have performedvery well in the bull market. GESCOCORP touched a high of 1300 inMay 2006 but has fallen considerably since then. Today’s intraday chart of Realty Index is plotted below, with Sensex byits side as a comparison.
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deepakmishra117

i am not a job holder currently, actually i m an engineering student. i want to invest in share market. i know enough about share market. please guide me how can i start to invest.

reply05 / 28 / 2008
Sam Wilson

Hello Mr Mishra. It doesnt look that easy , you analyze the market. you have written that you have fair knoledge of share market Make sure you have diversified portfolio. You must have plan of action that which are the upcuming industries. and if you have specific company in you mind go through there anual reports,check out the share prices and use time series model. Regards Sam

08 / 02 / 2010
RESU SHASHI KUMAR

iam not a job holder , not interested at all, i want earn through bse

reply04 / 07 / 2008
praveen_kumar

hi! i am in a job into a hospital and have enough money and time to invest in share market but don't know how? so please guide me with full of knowledge and in details. thanks.

reply02 / 19 / 2008
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