Engineers India Ltd and Fortis Healthcare India Ltd have replaced Torrent Power Ltd and Jai Prakash Hydro Power Ltd in the semi-annual review of the FTSE IDFC India Infrastructure 30 index. The review is based on the definition of infrastructure, the size of the company, liquidity and free float. The semi-annual review takes place in March and September.
The changes will be implemented on September 19 and the next review will take place on March 9, 2012, a news release from the company said.
The FTSE IDFC India Infrastructure Index is a benchmark index covering the entire eligible universe after size and liquidity screening and free float weighting, according to their website.
“The reason Fortis healthcare has become a part of the index is because it is the largest hospital in terms of real estate. In fact, it is much larger than Apollo. Fortis is also building more hospitals in tier-II and tier-III cities. They have even set up operations abroad,” said a pharmaceutical analyst, who said that Fortis' inclusion in the index was primarily because of the company's performance.
The three largest constituents of the index are Bharti Airtel, Larsen and Toubro and NTPC.
Following their inclusion in the infrastructure index, the stocks of Engineers India and Fortis Healthcare were both up 0.51 per cent and 0.20 per cent respectively on the BSE. Analysts say that their inclusion in the index will not have a major impact on the stocks.