CSE plans new index

CALCUTTA, March 12: The Calcutta Stock Exchange (CSE) proposes to introduce a new sensitive index which can be co-related to popular indices like BSE Sensex and the NSE Nifty. This is to overcome the shortcomings of the present CSE index which does not reflect major price movements "perceived by the general investors".

Accordingly, the new CSE-40 Sensitive Index will incorporate a basket of scrips representing the specified group of the exchange and covering all major industry groups. The scrips selected are market leaders in their respective industries. Other important selection criteria include "reasonably high market capitalisation", a good level of activity and investors’ fancy in the scrips.

The Sensitive Index would be based on the Standard & Poor’s model with the year ending on March 31, 1996, as the base year. The base year index would be equivalent to 2000.

The new index would comprise ACC, Gujarat Ambuja Cement, ICI, Bajaj Auto, LML, Balarampur Chini, ITC Bhadrachalam, Bata, L&T, TataChemicals, Indian Rayon, BSES, CESC, Castrol, Colgate, HLL, EIH, Indian Hotels, Eveready, GE Shipping, Glaxo, Hindalco, HDFC, ICICI, Telco, HPCL, RPL, Spic, Indo Gulf Fertilisers, Satyam Computers, IPCL, Reliance, Tisco, SAIL, ITC, Tata Tea, Mastershare, MTNL, SBI, and Grasim.