Index Committee
To meet its
objective of being a consistent barometer of the GDR market, Skindia formed
an internal index committee which was involved in construction of the index
and is responsible for its daily maintenance. The committee will review
the index set every quarter and carry out any changes if needed.
Method of
Index computation
The methodology
selected for the index computation is market capitalisation weighted as
per international standards followed by S&P 500 and NSE 50. It also
takes into account substitutions in the index set and important corporate
actions such as stock splits without affecting the index value.
Base period
of the index
The base date
of Skindia GDR Index is Jan 02, 1995 and the base value is set at 1000.
Weightages
Weightages
of our index set are based on the total market capitalisation (domestic
equity + GDR equity) of the company and not its GDR capitalisation alone.
Other important
indicators
Skindia
GDR Index Premium: The premium/discount % of the Skindia GDR Index
is the difference in the cost of buying GDRs and the same number of underlying
shares of companies in the Index. This indicator helps investors in taking
investment / trading decisions based on the price differential of the same
stock in the two markets.
Skindia
GDR Price/Earnings Ratio:It is the weighted average of the price/earnings ratio of stocks in the index set.
Skindia
GDR Industry Indices: We have developed various industry indices which
will enable fund managers to track the movement of specific industries
and their performance with that of the Skindia GDR Index.
Modern applications:
The index
is well suited for modern applications such as index funds and index derivatives,
both of which require the entire index set to be treated and traded as
a portfolio.
