Infra Index


By

Shweta Vakil
B-Pharm, MBA
Lecturer
YMT College of Management
 


Data on infrastructure is always a huge issue for both the government and the private sector, as they need to plan their investments based on ground-level realities.The ministry of statistics and programme implementation (Mospi) is required to compile an annual document on infrastructure statistics that would provide data on the geographic distribution and availability of infrastructure using parameters such as access, affordability, quality and cost, tradability of the output, private participation and environmental regulations. The sectors such as roads, railways, shipping, aviation, power, telecommunication, gas pipelines and canal networks for irrigation are the elements of the same. Looking at the requirement of this data one can easily conclude how difficult it must be to collect and compile such data or to bring it to usable form. Also there are sector specific problems. For eg. The railway ministry does not have state-wise data as it operations are divided into zones, while the ministry of shipping does not have statistics on private sector participation in ports. IISL has developed CNX Infrastructure Index to capture the performance of the companies in the infrastructure sector that was launched by a joint venture of rating agency Crisil and NSE  .

 CNX Infrastructure Index that  tracks  stocks in the infrastructure sector. The index comprises 25 stocks from telecom, power, ports, air, road and rail transport, shipping and utility services providers, The Stocks were selected for the index from among the top 500 companies ranked according to market capitalisation and turnover. The constituents should be available for trading in the derivatives segment, which should also have a positive net worth.

The 25 stock CNX Infrastructure Index represents about 71.8% of the free float market capitalization and 61.45% of aggregate turnover of the companies forming part of the Infrastructure Sector Universe for the last six months for the period March 31, 2011. The total traded value for the last six months of all CNX Infrastructure Index constituents is approximately 12.47% of the traded value of all stocks on the NSE. CNX Infrastructure Index constituents represent about 13.04% of the free float market capitalization as on March 31, 2011.

Methodology

CNX Infrastructure Index is computed using free float market capitalization* weighted method w.e.f. October 11, 2010. Index has base date of January 1, 2004, indexed to a base value of 1000

Selection Criteria

Selection of the
index set is based on the following criteria:

1. Company's market capitalisation rank in the universe should be less than 500
2. Company's turnover rank in the universe should be less than 500.
3. Company should have a positive Net worth.
4. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
5. The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE.

*CNX Infrastructure Index was computed using market capitalization weighted method from the launch date till October 08, 2010
 

Company Name
ABB Ltd.
Bharat Heavy Electricals Ltd.
Bharti Airtel Ltd.
Container Corporation of India Ltd.
Crompton Greaves Ltd.
DLF Ltd.
GMR Infrastructure Ltd.
Idea Cellular Ltd.
Indian Hotels Co. Ltd.
Jaiprakash Associates Ltd.
Lanco Infratech Ltd.
Larsen & Toubro Ltd.
Mundra Port and Special Economic Zone Ltd.
NTPC Ltd.
Power Grid Corporation of India Ltd.
Punj Lloyd Ltd.
Reliance Communications Ltd.
Reliance Infrastructure Ltd.
Reliance Power Ltd.
Shipping Corporation of India Ltd.
Siemens Ltd.
Suzlon Energy Ltd.
Tata Communications Ltd.
Tata Power Co. Ltd.
Unitech Ltd.
 

Industry
ELECTRICAL EQUIPMENT
ELECTRICAL EQUIPMENT
TELECOMMUNICATION - SERVICES
TRAVEL AND TRANSPORT
ELECTRICAL EQUIPMENT
CONSTRUCTION
CONSTRUCTION
TELECOMMUNICATION - SERVICES
HOTELS
DIVERSIFIED
CONSTRUCTION
ENGINEERING
TRAVEL AND TRANSPORT
POWER
POWER
CONSTRUCTION
TELECOMMUNICATION - SERVICES
POWER
POWER
SHIPPING
ELECTRICAL EQUIPMENT
ELECTRICAL EQUIPMENT
TELECOMMUNICATION - SERVICES
POWER
CONSTRUCTION
 


Shweta Vakil
B-Pharm, MBA
Lecturer
YMT College of Management
 

Source: E-mail May 5, 2011

          

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