Dow Jones India Titans 30 Index

Rupert Murdoch was in India recently, and it was the occasion for Dow Jones (controlled by Rupert Murdoch ) to announce the launch of a blue chip index for India called Dow Jones India Titans 30 which will constitute 30 largest and most liquid stocks listed on BSE and NSE.
Here are the details about the index constituition and inclusion from the Hindu Business Line news.

QUOTE: The Dow Jones India Titans 30 Index includes 30 largest and most liquid stocks traded in India. The selection to the index will be based on rankings by float-adjusted market capitalisation and 12 month average daily trading volume.
The index will track share prices of leading players across various business segments incorporated on the index and will be a basis for investment. Calculated in US dollar and Indian rupee, it will be reviewed every March.
The index has been created by financial information company Dow Jones Indexes, a business unit of Dow Jones & Company, a News Corporation company.
UNQUOTE


What is so important about Dow Jones India Titans 30 Index?
Though India already has SESEX index which also constitues the top 30 companies of Indian Stock Markets, the Dow Jones India Titans 30 Index would be a bit different.
Firstly, the Dow Jones India Titans 30 Index will be calculated both in USD as well as Indian Rupee (INR).
Secondly, the Dow Jones India Titans 30 Index puts more weightage on capital goods and infrastructure companies and is avoiding the Information Technology (IT) sector companies.

How will the Dow Jones India Titans 30 Index be beneficial to investors?
Firstly, the Dow Jones India Titans 30 Index is available both in USD and INR. Hence, the foreign investors in will have a benchmark index in the internationally accepted USD currency if they want to go for investments in India. This index in USD can also be used to measure the perfromance of indian companies and mutual funds. This will also provide a benchmark for India as an emerging market.

Secondly, it will be useful for investors who want to avoid IT (information Technology) sector comapnies. BSE Sensex and NSE Nifty 50 constitute a major portion into IT sector which may not be suitable for investors looking to avoid these sectors. Hence, this index will provide a nice alternative.

The index will be rebalanced every year in the month of March.

Reliance Industries that figures on the Dow Jones India Titans 30 with highest weightage of 10.80 per cent, as compared to Reliance’s weightage on Sensex of 15.96 per cent, on Monday. On NSE’s S&P CNX Nifty, Reliance enjoyed weightage of 12.51 per cent.

In the Dow Jones India Titans 30 Index, the financial sector has the highest weightage of 23.16 per cent, followed by basic materials 19.81 per cent, oil and gas 13.99 per cent
Top 10 companies represented on this index are Reliance Industries, Infosys Technologies, HDFC, Bharti Airtel, Larsen & Toubro, ICICI Bank, ITC, Oil & Natural Gas Corporation Ltd, DLF and Reliance Communication.

Morgan Stanley Capital International India index is another widely referred index of top Indian companies from the leading US based financial firm Morgan Stanley.