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BSE launches AllCap index, to cover 700 stocks & 95% MCap

To put in place an overall gauge for the Indian stock market, a new S&P BSE Allcap Index was launched on Thursday which will cover over 700 listed stocks representing over 95 per cent of market capitalisation.

Asia Index Private Limited, a joint-venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index and 18 other indices, BSE said in a statement. The move is in response to the market need for broader and innovative indices to keep up with investors’ growing appetite.

The new index will further be divided into five size- based indices including LargeCap, MidCap and SmallCap using total market capitalisation, and ten sector-based sub-indices.

Certain existing indices will be replaced by the new ones. The ten sector-based sub-indices are basic materials, consumer discretionary goods and services, energy, finance, FMCG, healthcare, industrials, IT, telecom and utilities. The new indices are expected to provide better representation of these industries with respect to size and sector. Besides, three new strategy indices--S&P BSE Sensex 1x Inverse Daily and S&P BSE Sensex 2x Inverse Daily, S&P BSE Sensex 2x Leverage Daily, were launched.

The existing S&P BSE indices for Midcap, Small cap, healthcare, IT and FMCG would be replaced with new indices, which would provide a better representation of these industries with respect to size and sector. “Today investors in India, and globally alike, want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices. The latest launches will provide investors the much-needed set of tools to make the most of the Indian equity market,” BSE MD and CEO Ashish Chauhan said.

Meanwhile, Operators decided to play safe by booking profits ahead of IT bellwether and top heavyweight, TCS, Q4 results to be announced later in the day as the benchmark S&P BSE Sensex dipped by 134 points while CNX Nifty also dropped by over 43 points to end at one-week lows. The market resumed on a firm note on the back of positive Asian trends due to better closing on Wall Street on Wednesday, but immediately it washed out initial gains in the afternoon trade and plunged by over 300 points. Gradual buying mainly in refinery and some of the key battered stocks helped the market to recover more-than half of losses.

Besides sectoral S&P BSE-Oil&Gas index, which finished higher by 0.93 pct, other 11 indices finished down between 0.24 and 1.56 pct with capital goods, healthcare, consumer durable, IT, FMCG and bankex taking the lead in the dowsslide.

Weakness in European stocks too weighed on the local market as investors feared about the deepening crisis in Greece as global credit rating agency Standard & Poor’s downgraded Greece. The BSE 30-share indicator resumed higher at 28,876.23, which was also the day’s high, but succumbed to selling and tumbled to a low of 28,497.70 before concluding at 28,666.04, a net fall of 133.65 points or 0.46 pct.

Fund raising via NCDs dives to  6-yr low in FY15

Fund raising through retail issuance of non-convertible debentures (NCDs) came in at Rs 9,422 crore for 2014-15, a 6-year low. But the amount overshot the initial target of Rs 4,075 crore.

According to data available with the Securities and Exchange Board of India (Sebi), the funds mobilisation came in way below the Rs 42,383 crore mopped up in the preceding fiscal.

This was the lowest amount since 2008-09 when firms had raked in Rs 1,500 crore through the NCD
route. Data on NCD are not available on Sebi’s website prior to this period.

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