[Economy] Greenex : New BSE Stock index for Energy efficient companies

Enter your email address

Once you subscribe,
you'll get my full articles
in your email for free!
See Below
The Number of readers
I already have!

Before moving further, I suggest you read How do they calculate SENSEX (click Me0

What is Greenex?

• it is a stock index similar to SENSE, launched in 2012.
• It measures the share-trading activity of 20 top energy efficient companies of India in Bombay Stock Exchange.

What type of companies listed in Greenex?

• Just like SENSEX this is a 'weighted' index, but comprising of energy efficient companies or 'green' companies.
• biggest weightage in this index :Tata Steel.
• Included : ICICI Bank, State Bank of India, HDFC, Sun Pharma and BHEL.
• Not included: Infosys, wipro, ONGC, reliance etc big companies

Timeline

• Baseyear: 1st October, 2008 (incase of SENSEX it is 1979)
• Basevalue: 1000
• Started in Feb. 2012, opened at 1488
• Numbers are not important, but you must understand the meaning: If the value of all stocks traded in BSE, was Rs.1000 in 2008 then right now it is  Rs.1488.
• In case of SENSEX: the basevalue is 100, meaning
• if value of all stocks traded in BSE in 1979 was Rs.100 right now it is 15000 (or whatever it is).

ok, but why create Greenex, where there is already SENSEX?

• You and me purchase shares
• Company makes profit and gives us 'dividend' on those shares. If company gets higher profit, we get higher dividend.
• (assumption) In long term, energy efficient companies will get better profits than other companies.
• So if there is a separate index to measure performance of Energy efficient companies in stock-market, the investors can make a better and informed decision about where should they put their money. That's why separate Greenex despite having  a SENSEX.