India Housing & Allied Businesses Index’ seeks to measure the performance of a portfolio of minimum 50 stocks that form part of select 14 basic industries
Index Methodology
• Should form part of top 800 companies by both Full Market capitalization and average Turnover in 6 months period prior review.
• Should have an average free float Market capitalization of minimum 1000 Cr and full market capitalization of minimum 2000 Cr. in previous 6 months period.
• Stock should have a minimum listing history of 3 months.
• Should have traded on all trading days in previous 6 months period at the time of review.
• Top 5 stocks are chosen from each of the 14 basic industries on the basis of full market capitalization. In case the portfolio consists of less than 50 stocks, remaining stocks are chosen on the basis of full market capitalization across eligible basic industries.
• Weight of ‘basic industry’ is capped at 20% and stock at 10% cap on a quarterly basis. Weights of basic industry and stocks may drift between the quarters due to movement in stock prices.
• Index is reviewed semi-annually based on six months ending data as on January 31st and July 31st. Changes in the index are made effective along with NIFTY Broad based indices.
• During the review, any member stock that undergoes change in classification and is not part of the 14 basic industries shall be excluded from the index.
• Stocks that do not qualify the eligibility criteria mentioned above shall be compulsorily excluded from the index and replaced with non-member eligible stocks.
• In case of availability of an eligible non-member stock from a basic industry that has less than 5 stocks in the existing index portfolio, such stock shall be included in the index.
• Non-member eligible stock with full market capitalization of 1.25 times the full market cap of the smallest full market capitalization stock in the basic industry/index shall be compulsorily included in the index via replacement.
• Apart from the scheduled semi-annual review, additional ad-hoc reconstitution and rebalancing of the index shall be initiated in case any of the index constituents undergoes suspension or delisting or scheme of arrangement.
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