The objective was to get at an indicator reflecting broader market movement to serve as a 'growth index covering a larger part of the market' than theLarge-cap only Nifty / Sensex.
And bcoz of the larger basket, the expectation is to have lesser volatility and as the objective has been growth, the rise/fall in this index should be higher / lesser than the front-line indices on up/down days. The stocks included in STIXi have reasonable liquidity. Without going by any technical or functional analysis, stocks were included based on
- my observations over the past 4-5 years of the market,
- relative absence of / limited operator activity,
- givingcoverage to various sub-sectors (For eg., in case of Oil & Gas sector, have included Exploration cos, Refiners, Marketers, Off-shore cos, Pipe cos etc).
- a handful of momentum stocks / trader favorites have been thrown, just to get a balance.
STIXi summary of the index composition:
No. of Stocks in index : 150
Base price used: Closing Prices of 1-APR-2008. (Historical values will be back-derived and posted later).
Initial Value of Index : 1000.04
Capitalisation Weightage in Index
- Large Cap 44.3484%
- Mid Cap 37.5369%
- Small Cap 18.1147%
Sectoral weightage in index:
- Auto 5.9784%
- Banks 5.0022%
- Cement 5.0004%
- Chemicals/Fertilizers 3.0094%
- Engineering/CG 5.0081%
- Finance/Brokerages 3.9987%
- FMCG/Retail/Consumer 6.9984%
- Infotech 5.9923%
- Infrastructure 6.0006%
- Logistics 2.9974%
- Media 4.9995%
- Metal 5.9952%
- Oil & Gas 4.9988%
- Pharma 5.9963%
- Power 5.9995%
- Realty 3.0063%
- Shipping 5.0012%
- Sugar 4.0095%
- Telecom 5.0057%
- Textiles 1.9989%
- Tourism/Hospitality 3.0032%
Stability:
No changes are proposed to be made atleast for the first 6 months. If required, tweaking may be odone as necessary every three months thereafter.
Hope you find STIXi useful.
Cheers
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