Vous êtes sur la page 1sur 5

As per listing on BSE

PUBEX The pulse of Banks (PSU)


A glance at BSE Banks (PSU) Index

By: Srikanth Kumar Konduri srikanthkonduri@gmail.com Contact No: 07838590567

7/11/2011

Table of Contents
About PUBEX:....................................................................................................................... 2 PUBEX - Scrip selection criteria: .......................................................................................... 2 PUBEX Calculation Methodology: ........................................................................................ 2 Maintenance of PUBEX: ........................................................................................................ 2 Adjustments to the base market capitalization ....................................................................... 3 Incoming and Outgoing Scrips ............................................................................................... 3 A comparison of our PUBEX with BSE Bankex ................................................................... 3 Companies in PUBEX............................................................................................................ 4 Comparison of PUBEX with Sensex: .................................................................................... 4

1|Page

About PUBEX: This is the name coined for the index representing Banks (PSU) sector listed on BSE. The base period of PUBEX is 2005-06 and the base value is 1000 index points. Index is calculated on a daily basis. PUBEX - Scrip selection criteria: Top 10 companies in terms of free-float market capitalization will qualify for index membership. Accordingly, index composition is updated at the end of every quarter, as per latest rankings. PUBEX Calculation Methodology: Free float market capitalization method is used for index construction, with free-float factors of index constituents adjusted to forward nearest multiple of 5. The market capitalization of index constituents on 31-March-2006 is considered as base market capitalization.

Where, CFFF = (Current Free-Float Factor) CMP = (Current Market Price) Maintenance of PUBEX: Changes to the free-float factors and to the No. of shares held by a company in a particular quarter are validated on the closing day of every quarter. Adjustments are done to the base market capitalization of index at the end of every quarter to reflect the implications of any corporate announcement viz., issue of rights, bonus, buyback or mergers. Base market capitalization is also revised in the event of a change in index constituents.

Where, BMC = (Base Market Capitalization) CMC = (Current Market Capitalization) (Adjusted CMC) = (CMC) + (Net addition due to adjustments)

2|Page

Adjustments to the base market capitalization The following are the corporate actions which result in change of market capitalization. a. b. c. d. e. f. Rights Issue ESOPs Conversion of Debentures Issue of shares to GOI Preferential allotment Private placement to QIBs

As we have considered free float market capitalization, we have adjusted the base market capitalization only for corporate actions type a, b and c. Incoming and Outgoing Scrips Only top 10 companies, in terms of free float market cap, were considered for the formation of index. The revision is done at the end of every quarter. Quarter Ending Jun-06 Sep-06 Sep-07 Dec-07 Dec-08 Mar-09 Sep-09 Dec-09 Jun-10 Sep-10 Incoming Andhra Bank Corporation Bank Andhra Bank Corporation Bank Andhra Bank Corporation Bank IOB Allahabad Bank Andhra Bank IDBI Outgoing Corporation Bank Andhra Bank Corporation Bank Andhra Bank Corporation Bank IOB Andhra Bank IOB IDBI Andhra Bank

A comparison of our PUBEX with BSE Bankex

16000 14000 12000 10000 8000 6000 4000 2000 0

4000.00 3500.00 3000.00 2500.00 2000.00 1500.00 1000.00 500.00 0.00

BSE Bankex PUBEX

3|Page

Companies in PUBEX

Rank 1 2 3 4 5 6 7 8 9 10

As on 30/06/2011 Script Name SBI PNB Bank of Baroda Canara Bank Bank of India Union Bank IDBI Bank OBC Allahabad Bank Corporation Bank

Free Float Market Cap 687,499,120,078.40 155,339,336,820.24 153,625,061,826.05 81,292,715,000.00 79,242,386,051.85 69,086,039,000.40 46,884,343,875.97 43,260,889,261.05 42,173,637,418.08 35,032,978,689.62

Weight(%) 49.34 11.15 11.02 5.83 5.69 4.96 3.36 3.10 3.03 2.51

SBI has a weightage of around 50% and hence is a major mover of PUBEX. The movement of PUBEX is almost similar to that of BSE Bankex. It can be inferred that the PSU banks move in sync with other banking stocks. Comparison of PUBEX with Sensex:
25000 20000 15000 10000 5000 0 4000.00 3500.00 3000.00 2500.00 2000.00 1500.00 1000.00 500.00 0.00 Sensex Close PUBEX Close

A close observation of the above graph indicates that PUBEX lags behind BSE Sensex, indicating that any highs or lows in the Sensex will be reflecting in PUBEX but with a lag time, which allows some room for margin calls to benefit from information irrelevance. However, the long-term movement remains more or less in sync with that of Sensex.

4|Page