power index

i was wondering if someone knows how the power index was created as in the calculations involved

Are you referring to BSE POWER INDEX??!!!!
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BSE Launches 'BSE Power Index'

In the continued efforts of providing quality benchmarks, BSE announces launch of BSE Power Index on the eve of Festival of Light. The index aims to track the performance of companies engaged into the business of generation, transmission, distribution of electricity, companies providing power infrastructure, and manufacturers of equipments required for power generation.

The Salient features of BSE Power index are as follows:

Base Date: January 3, 2005
Base Index Value: 1000
Calculation Methodology: Free-float Methodology
No. of Scrips on launch date: 14
Historical Values: Available since January 3, 2005
This represents about 90% market capitalisation of power sector companies from the list of BSE-500 index.

The Constituents of BSE Power Index as on 08/11/2007 are Bharat Heavy Electricals Ltd, NTPC Ltd, Reliance Energy Ltd, Suzlon Energy Ltd, Tata Power Co. Ltd, ABB Ltd, Siemens Ltd, Crompton Greaves Ltd, Power Grid Corporation Of India Ltd, GVK Power & Infrastructure Ltd, GMR Infrastructure Ltd, Torrent Power Ltd, Areva T&D India Ltd, CESC Ltd.

Bharat Heavy Electricals Ltd, NTPC Ltd and Reliance Energy Ltd have the highest weightage in the index with BHEL having the highest followed by the other two respectively. These 3 stocks together forms almost 50% weightage of the index.

The index would be calculated and disseminated on a real time basis through BSEs trading terminal BOLT, BSE website and datafeed vendors effective November 9, 2007.

Presently BSE calculates and disseminates on a real time basis the sectoral indices such as BSE Auto, BSE Bankex, BSE Capital Goods, BSE Consumer Durables, BSE FMCG, BSE Healthcare, BSE IT, BSE Metal, BSE Oil & Gas, BSE Realty, BSE TECk.

Source: Equity Bulls

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You may also like to know about CNX Energy Index..

Check the link :

http://www.nse-india.com/content/indices/ind_cnxenergy.htm


CNX Energy Index
Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately.

As a fast-growing economy, India has become one of the largest energy intensive countries in the World. Energy is a crucial input for India's development process. The need of the hour, therefore, is to meet the energy needs of all segments of India's population in the most efficient and cost-effective manner while ensuring long-term sustainability. IISL has developed CNX Energy Index to capture the performance of the companies in this sector.

Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors.

The CNX Energy Index represents about 87.37% and 80.55% of the market capitalization and turnover of the last six months for the period March 31, 2009 of the Energy Sector Universe respectively .

The total traded value for the last six months of all CNX Energy Index constituents is approximately 16.88% of the traded value of all stocks on the NSE. CNX Energy Index constituents represent about 27.35% of the total market capitalization as on March 31, 2009.


Methodology

The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.


Selection Criteria

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

Company's market capitalisation rank in the universe should be less than 500


Company's turnover rank in the universe should be less than 500


Company's trading frequency should be at least 90% in the last one year


Company should have a minimum track record of 3 years of operations with a positive networth.


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.

List of Stocks in Energy Index :

Constituents list of CNX Energy

Company Name,Industry,Symbol,Series,ISIN Code

Bharat Petroleum Corporation Ltd.,REFINERIES,BPCL,EQ,INE029A01011
Cairn India Ltd.,OIL EXPLORATION/PRODUCTION,CAIRN,EQ,INE910H01017
GAIL (India) Ltd.,GAS,GAIL,EQ,INE129A01019
Indian Oil Corporation Ltd.,REFINERIES,IOC,EQ,INE242A01010
NTPC Ltd.,POWER,NTPC,EQ,INE733E01010
Oil & Natural Gas Corporation Ltd.,OIL EXPLORATION/PRODUCTION,ONGC,EQ,INE213A01011
Power Grid Corporation of India Ltd.,POWER,POWERGRID,EQ,INE752E01010
Reliance Industries Ltd.,REFINERIES,RELIANCE,EQ,INE002A01018
Reliance Power Ltd.,POWER,RPOWER,EQ,INE614G01033
Tata Power Co. Ltd.,POWER,TATAPOWER,EQ,INE245A01013

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Trust this helps.