Sensex At 10000

kaizartrtr · #1 29th September 2005, 02:17 PM

Hi,
i m a new member.I invest thru icicidirect.com .I m still a novice in here.I want to learn how to invest properly.Thats the reason i have joined this forum.
I wanted to know from my seniors 'what is the criteria for a company to enter SENSEX' which is made of 30 scrips.
What happens of Z-category shares?.I have some shares which are delisted and i want to know how can i sell them and where?
Also I would like Advice on whether the market has reached its saturation level or will it appreciate furthur.Will it reach 10000?
thanx in advance.

ivanboesky · #2 29th September 2005, 06:54 PM

The stock selection criteria for the Sensex is as follows:

A. Quantitative Criteria:

1. Market Capitalization:
The scrip should figure in the top 100 companies listed by market capitalization. Also market capitalization of each scrip should be more than 0.5 % of the total market capitalization of the Index i.e. the minimum weight should be 0.5 %. Since the SENSEX is a market capitalization weighted index, this is one of the primary criteria for scrip selection. (Market Capitalization would be averaged for last six months)

2. Liquidity:
(i) Trading Frequency: The scrip should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like scrip suspension etc. (ii) Number of Trades: Number of Trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year. (iii) Value of Shares Traded: Value of Shares Traded: The scrip should be among the top 150 companies listed by average value of shares traded per day for the last one year.

3. Continuity:
Whenever the composition of the index is changed, the continuity of historical series of index values is re-established by correlating the value of the revised index to the old index (index before revision). The back calculation over the last one-year period is carried out and correlation of the revised index to the old index should not be less than 0.98. This ensures that the historical continuity of the index is maintained.

4. Industry Representation:
Scrip selection would take into account a balanced representation of the listed companies in the universe of BSE. The index companies should be leaders in their industry group.

5. Listed History:
The scrip should have a listing history of at least one year on BSE.

B. Qualitative Criteria:

Track Record:
In the opinion of the Index Committee, the company should have an acceptable track record.

ivanboesky · #3 29th September 2005, 06:56 PM

For your Z-category shares that have been delisted, there is no secondary market and you will have to wait for the shares to be relisted again, following which you will be able to sell the stock.

ivanboesky · #4 29th September 2005, 06:59 PM

About your last query, the answer is Yes. The Sensex will definitely touch the five figure mark. The point is, when will it reach this figure? Is now a good time to buy, or wait for a pullback to enter the market? There is no sure shot way to gauge that. Better to buy fundamentally sound stocks, that are not trading at exorbitant valuations and enjoy the ride.

joy_mitali · #5 29th September 2005, 07:46 PM

Hi Readers,
Continuing from what Ivan has said---Some of the Stocks which I think--one can go long ---even from this high Market----r:

CMP Extreme Downside(probable) Safe Buy Upside(probable)
NTPC-----107.65 90 100 175
ICICI-----598 475 560 800
ITC -----138.4 115 135 250
GAIL-----261.9 210 250 350
GUJ-AMB--76.1 60 72 120
KOTAK BANK--204.6 185 200 300
ONGC----1076.95 920 1030 1300
TV18---393.4 320 360 500
FINANCIAL TECK--1287 1000 1250 1600

Dearest Ivan-----add necessary cmments--
Regards,
joy_mitali

zen4all · #6 29th September 2005, 08:00 PM

Quote:

Originally Posted by ivanboesky

The stock selection criteria for the Sensex is as follows:

A. Quantitative Criteria:

1. Market Capitalization:
The scrip should figure in the top 100 companies listed by market capitalization. Also market capitalization of each scrip should be more than 0.5 % of the total market capitalization of the Index i.e. the minimum weight should be 0.5 %. Since the SENSEX is a market capitalization weighted index, this is one of the primary criteria for scrip selection. (Market Capitalization would be averaged for last six months)

2. Liquidity:
(i) Trading Frequency: The scrip should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like scrip suspension etc. (ii) Number of Trades: Number of Trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year. (iii) Value of Shares Traded: Value of Shares Traded: The scrip should be among the top 150 companies listed by average value of shares traded per day for the last one year.

3. Continuity:
Whenever the composition of the index is changed, the continuity of historical series of index values is re-established by correlating the value of the revised index to the old index (index before revision). The back calculation over the last one-year period is carried out and correlation of the revised index to the old index should not be less than 0.98. This ensures that the historical continuity of the index is maintained.

4. Industry Representation:
Scrip selection would take into account a balanced representation of the listed companies in the universe of BSE. The index companies should be leaders in their industry group.

5. Listed History:
The scrip should have a listing history of at least one year on BSE.

B. Qualitative Criteria:

Track Record:
In the opinion of the Index Committee, the company should have an acceptable track record.

thanks Ivan.that was extremely informative..

regards,

alokdaga · #7 29th September 2005, 08:16 PM

Financial tek - is it a fundamentally sound stock?

Regards

Alok

Quote:

Originally Posted by joy_mitali

Hi Readers,
Continuing from what Ivan has said---Some of the Stocks which I think--one can go long ---even from this high Market----r:

CMP Extreme Downside(probable) Safe Buy Upside(probable)
NTPC-----107.65 90 100 175
ICICI-----598 475 560 800
ITC -----138.4 115 135 250
GAIL-----261.9 210 250 350
GUJ-AMB--76.1 60 72 120
KOTAK BANK--204.6 185 200 300
ONGC----1076.95 920 1030 1300
TV18---393.4 320 360 500
FINANCIAL TECK--1287 1000 1250 1600

Dearest Ivan-----add necessary cmments--
Regards,
joy_mitali

Huzefa_The_One · #8 30th September 2005, 12:20 AM

The sensex and How it will move lets see, I would say,

NAVRATRI MEIN NAU HAZAR DEEWALI MEIN DUS HAZAR

kaizartrtr · #9 30th September 2005, 08:10 AM

thanks for all your replies.
but i have heard that Z catagory shares can be sold thru brokers offline.

kaizartrtr · #10 30th September 2005, 08:22 AM

sorry but i donno sharemarket terminology much.What does CMP mean?
Thanks in advance.

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