BSE BANKEX- Commentary.... Click here
In view of the emergence of banking stocks as a major segment in the equity markets, BSE considered it desirable to design an index exclusively for bank stocks.
A few important features of the BANKEX are given below:
*BANKEX tracks the performance of the leading banking sector stocks listed on the BSE
*BANKEX is based on the free-float methodology of index construction
*The base date for BANKEX is 1st January 2002.
*The base value for BANKEX is 1000 points
*BSE has calculated the historical index values of BANKEX since 1st January 2002.
*12 stocks which represent 90 percent of the total market capitalization of all banking sector stocks listed on BSE are included in the Index
*The Index is disseminated on a real-time basis through BSE Online Trading (BOLT) terminals.
Scrip Selection Criteria for BSE Bankex :
Scrips classified under the banking sector that are present constituents of BSE-500 index form the eligible universe.
Scrips should have a minimum trading frequency of 90% in preceding three months.
Scrips with a minimum market capitalization coverage of 90% in banking sector based on free-float final rank form the index.
A buffer of 2% both for inclusion and exclusion in the index is considered so that movements in and out of the index are minimized. For example, a company can be included in the index only if it falls within 88% coverage and an existing index constituent cannot be excluded unless it falls above 92% coverage. However, the above buffer criterion is applied only after the minimum 90% market coverage is satisfied.
Click here for Stocks forming part of the BANKEX