Asia Index will reconstitute the S&P BSE’s four factor indices — S&P BSE Momentum Index, S&P BSE Quality Index, S&P BSE Enhanced Value Index and S&P BSE Low Volatility Index — from September 18.
The index provider on Friday said 14 companies, including Tata Chemicals, Tata Motors, JSW Steel and NMDC Ltd, would be dropped from the S&P BSE Momentum Index, which tracks the performance of the 30 companies in the S&P BSE LargeMidCap that exhibit most persistence in their relative performance, measured by their risk adjusted price momentum score.
These companies would be replaced by 15 firms including, Reliance Industries, Adani Enterprises and Rural Electrification Corp Ltd.
Besides, 11 firms would be shifted out of S&P BSE Quality Index, that measures the performance of high quality stocks in the S&P BSE LargeMidCap. These firms include like Adani Enterprises, Petronet LNG. They would be replaced by PNB, Zee Entertainment and GAIL India among eight other firms.
Adani Power, Central Bank of India and Tata Chemicals would be moved out of the S&P BSE Enhanced Value Index, while Bank of Baroda, Mangalore Refinery & Petrochemicals, ONGC and IDBI Bank would be added to it.
The S&P BSE Enhanced Value Index is designed to measure the performance of the 30 companies in the S&P BSE LargeMidCap with the highest valuations based on three fundamental measures — book value—to—price, earnings—to—price and sales—to—price. Lastly, six companies, including RIL, ITC and Apollo Hospitals, would be dropped from S&P BSE Low Volatility Index and be replaced by CRISIL, L&T and Maruti Suzuki India, among others.