Asia Index to reconstitute factor indices from Sep 18

The index provider today 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 Punjab National Bank, Zee Entertainment Enterprises and Gail India among eight other firms.

Adani Power Ltd, 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 Reliance Industries, ITC and Apollo Hospitals Enterprise, would be dropped from S&P BSE Low Volatility Index and be replaced by CRISIL, Larsen & Toubro and Maruti Suzuki India, among others.

Besides factor indices, changes would be made to S&P BSE Dividend Stability Index, S&P BSE India Infrastructure Index, S&P BSE India Manufacturing Index and S&P BSE IPO Index.

S&P BSE Dividend Stability Index would see the inclusion of 10 companies like NMDC and JSW Steel, while GMR Infrastructure and SpiceJet would be added to the infrastructure index.

State Bank of India and Reliance Power are being shifted out of the dividend stability index and infrastructure index, respectively.

Asia Index is a 50-50 partnership between S&P Dow Jones Indices LLC and BSE.