SIS Part - 2 (Selection Criteria of top 30 Scrips in BSE)

Continuation to SIS Part-1

Generally sensex calculated by top 30 listings under BSE, this post will bring some awareness in selection criteria of top 30 scrips in BSE

 

(1) A company equities listed on BSE ltd. (by excluding mutual funds, and the scrips that are traded by permitted category and SME category)  shall be considered eligible

(2) A company should have a listing history in last 3 months at BSE

(3) A company stock should be traded each and every trading day in last three months

(4) A company should meet revenue criteria in last four quarters are eligible.

(5) from the sorted list of top 4 points, the top 75 companies are selected as per the free float market capitalization by taking average of last 3 months, as well as any other companies listed under top 75 as per the full market capitalization. 

(6) From the sorted list came by the 5th point (which can be greater than top 75 companies) is then ranked under absolute turnover (The return that an asset achieves over a certain period of time) avg of 3 months

(7) From the sorted list of 6th point that has cumulative turnover  (The sum of a company's income with respect to a specified financial period or date) of >98 % are excluded and the remaining list may be just more than 30 companies

(8) The sorted list of 7th point is further reduced by free float market capitalization i.e any company having a weight < 0.50 % will be excluded.

(9)All remaining companies will be sorted on sector and sub-sorted in the descending order of rank on free-float market capitalization.

 Well these are the standard selection criteria procedure accepted by the authority boards 

In part three we will see how to read sensex charts :-)

Have a blessed day.. !

Contact: lalikrishna@outlook.com