Financial Daily from THE HINDU group of publications
Wednesday, Oct 01, 2003
Financial Daily from THE HINDU group of publications Wednesday, Oct 01, 2003 |
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Stocks Markets - Stock Markets ONGC, Wipro to have lower weightage in Sensex Virendra Verma
Mumbai , Sept 30 ONGC and Wipro, the new entrants to the BSE Sensex list, will not have higher weightage in the benchmark index despite having large market capitalisation due to low floating stock of these companies. According to the BSE, the weightage of ONGC in the index would be 1.75 per cent based on the stock's closing price on Friday. However, the total market capitalisation of ONGC (on Friday's price) is Rs 81,877.13 crore, the highest among the Sensex list. In fact, ONGC is the most valuable company, based on market capitalisation on the Indian bourses. Similarly, Wipro with total market capitalisation of Rs 28,953.36 crore would have weightage of 2.47 per cent in the Sensex (based on the Friday's price). HDFC Bank, also included in Sensex, has lower market cap compared to ONGC and Wipro but will have higher weightage of 2.63 per cent due to higher floating stock. The lower weightage is due to low floating stock of these companies. In ONGC, the Government holds almost 85 per cent and in Wipro, Mr Azeem Premji, along with his investment companies, holds around 84 per cent. Early this year, the BSE changed the methodology for assigning weightages to the stocks included in Sensex from total market capitalisation to free-float market capitalisation. Under this, market capitalisation of floating stock is taken for assigning weights to individual stocks. For ONGC, the BSE has taken free float factor (FFF) of 0.05 and for Wipro it is 0.20. In comparison HDFC Bank has FFF of 0.8. For other stocks included in Sensex, Bharti Televentures the weigthage would be 1.20 per cent and Tata Power it would be 1.06 per cent. These changes are expected to come into effect from November 10. Even after the changes made by the BSE, Reliance Industries still has the highest weightage (13.97 per cent) in the benchmark index followed by Infosys with weigthage of 9.65 per cent and for Hindustan Lever, it would be 8.57 per cent due to higher floating stock.
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