Need of the Atherstone Indian Sector Indices:
A great deal of investment interest is now focused on the specific sector. In order to have a good benchmark of the prominent Indian sectors, Index Product Group has developed various sector indices on Indian Equity Markets. The indices provide investors and market intermediaries with an appropriate benchmark that captures the performance of the respective segment of the market.

Like for eg., the Banking Industry has been undergoing major changes, reflecting a number of underlying developments. Advancement in information technology has facilitated growth in internet-banking, Electronic transfer of funds etc. Reforms in the banking sector like the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Non-performing Assets (NPAs) etc, has raised transparency and efficiency in the banking system. Also, Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In order to have a good benchmark of the Indian banking sector, IPG of Atherstone Capital Markets Limted (ACML) has developed the Atherstone India Bankex Index. Similarly, Pharmaceuticals sector is one of the key sectors where Indian companies have created a global brand for themselves besides software. Indian companies have taken advantage of the opportunities in the regulated generics market in the western countries and made deep inroads especially in providing low cost equivalents of expensive drugs. Pharma outsourcing into India and low cost Healthcare services are expected to be the key areas of growth in the near future. Therefore IPG has developed Atherstone India Healthcare Index, to capture the performance of the companies in this sector. Another important sector is Real estate sector in India which is witnessing significant growth. Recent dynamics of the market reflected the opportunity of creating wealth across real estate companies, as proven by recent listings of real estate companies resulting into prominent growth in public funds and private equity. The main growth thrust is coming due to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies, professionalism in the real estate sector and favorable reforms initiated by the government to attract global investors. Further necessitated by the thrust of redevelopment of old buildings, building townships and redeveloping mill lands, one can witness plenty of opportunities in real estate sector. Looking at this development IPG has developed the Atherstone India Realty Index to synergize these emerging opportunities along with their Index expertise creating new investment avenues for investors.

Therefore, looking at the importance of each and every sector in the economy, IPG has constructed following Indian Sector Indices.

Atherstone India Auto Ancillaries Index
Atherstone India Bankex Index
Atherstone India Fertilizers Index
Atherstone India FMCG Index
Atherstone India Finance Index
Atherstone India Garments Index
 Atherstone India Gems & Jewellery Index
Atherstone India Healthcare Index
Atherstone India LPG Gas Cylinder Index
Atherstone India Media & Entertainment Index
Atherstone India Mining Index
Atherstone India Oil & Gas Index
Atherstone India Pharma Bulk Drug Index
Atherstone India Pharma Formulation Index
Atherstone India Power Index
Atherstone India PSU Bankex Index
Atherstone India Private Bankex Index
Atherstone India Realty Index
Atherstone India Retail Index
Atherstone India Telecom Index
 
GUIDELINES FOR ATHERSTONE INDIAN SECTOR INDICES:
 
Index Universe
The universe of the above sectors is companies forming part of these sectors as already classified by Capital Line.
 
Inclusion
If for any of the above sector if the universe is below 15 (Fifteen) number of companies the whole universe would form part of the index to give due and proper representation to the index, else the number of companies will be restricted to 15. The scrip should figure in the top 15 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalization and 25% weightage to the liquidity rank based on turnover.
 
Deletion
At the time of review, companies are removed from the Index that does not fall in top 15 in terms of final rank.
 
Specifics
The index is calculated on free float market capitalization methodology which is widely followed index construction methodology globally. The daily historical indices value is calculated from 01-04-2006. The base composition of the index is selected by taking average market capitalization of the companies between 1st Jan, 2006 to 31st March, 2006. The index number is set as 1000.
 
Review Frequency:
The Constituents of the index are reviewed on a half-yearly basis. The initial composition of the index is selected from average market capitalization for the quarter ending 31-03-2006. Subsequently, the indices are reviewed by taking into account preceding three months average market capitalization.
 
 
   
 

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