Page 69 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes The equity shares of 200 selected companies from the specified and non-specified lists of BSE
were considered for inclusion in the sample for ‘BSE-200’. The selection of companies was
primarily been done on the basis of current market capitalization of the listed scrips. Moreover,
the market activity of the companies as reflected by the volumes of turnover and certain
fundamental factors were considered for the final selection of the 200 companies.
Specification
Base Year 1989-90
Base Index Value 100
Date of Launch May 27, 1994
Method of calculation Launched on full market capitalization method and effective August
16, 2005, calculation method shifted to free-float market capitalization.
Number of scrips 200

Dollex Series of BSE Indices

All BSE indices reflect the growth in market value of constituent stocks over the base period in
Rupee terms. A need was felt to design a yardstick by which these growth values are also
measured in Dollar terms. Such an index would reflect, in one value, the changes in both the
stock prices and the foreign exchange variation.
This was facilitated by the introduction of a dollar-linked index in which the formula for
calculation of index is suitably modified to express the current and base market values in dollar
terms. The scope for dollar-linked index emerged from the background of Indian equity markets
increasingly getting integrated with global capital markets and the need to assess the market
movements in terms of international benchmarks. The dollar-linked indices are useful to overseas
investors, as it helps them measure their 'real returns' after providing for exchange rate
fluctuations.
Dollex-30, a dollar-linked version of SENSEX, was launched on July 25, 2001 whereas Dollex-
200, a dollar-linked version of BSE-200 was launched on May 27, 1994. These indices were
initially calculated at the end of the trading session by taking into consideration day's rupee/
US$ reference rate as announced by India 's Central Bank i.e. Reserve Bank of India.
BSE introduced Dollex-100, a dollar linked version of BSE-100, on May 22, 2006.
Dollex-30, Dollex-100 and Dollex-200 are calculated and displayed through BSE On-line trading
terminals (BOLT) by taking into account real-time Re./US$ Exchange rate. The formula for
calculating the index is:

Index Value In local currency * Base rupee-US$ rate
Dollex
Current rupee-US$ rate

BSE-500

Bombay Stock Exchange Limited constructed a new index, christened BSE-500, consisting of 500
scrips w.e.f. August 9, 1999. The changing pattern of the economy and that of the market were
kept in mind while constructing this index.
BSE-500 index represents nearly 93% of the total market capitalization on BSE. BSE-500 covers all
20 major industries of the economy. In line with other BSE indices, effective August 16, 2005
calculation methodology was shifted to the free-float methodology.

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