BSE INDEX INFRA (INFRA) live share price today at BSE

The BSE India Infrastructure Index represents the top 30 Indian companies that are engaged in the infrastructure and its related operations, which fulfil the investability requirements. It acts as a benchmark for investors to measure the performance of the infrastructure sector. The diversification consists of 30 stocks, selected based on the BSEAllCap Index, which shows the sectors involved in the infrastructure and other related operations.  

The BSE India Infrastructure Stocks came into effect on May 19, 2014, with a base date of April 3, 2006, and a base value of 100. The Infrastructure stocks are divided into seven sectors, such as Capital Goods, Power, Transport Services, Oil & Gas, Finance, Utilities, and Housing. The BSE India Committee establishes the BSE India Infrastructure Index, which is managed by the same entity, Asia Index Private Ltd. This joint venture is a partnership between the BSE India Infrastructure Index and BSE Ltd.

The Infrastructure Sector contributes significantly to the Indian Economy. It plays a crucial role in the development of the Indian Economy, as the status of any city is defined by its infrastructure, so the intervention of the government in this sector is also very significant. Investors may see returns after investing in developing infrastructure sectors.

• The full market capitalisation of the BSE India Infrastructure Index is ₹3,532,276.90 crore, and the free-float market capitalisation is ₹1,566,803.39 crore.
• The P/E Ratio of the BSE Infrastructure India Index is 15.32, the P/B Ratio is 2.80, and the dividend yield ratio is 1.82.
• The BSE Infrastructure Index is diversified across various sectors such as Power, Capital Goods, Transport Services, Oil & Gas, and many more.
• The weights of the top three sectors are 28.85%, 28.50%, and 16.27%.
• The turnover ratio of the stocks in the BSE India Infrastructure Index shall be at least 10%.
• The ranking in the infrastructure sector shall be based on the full-market capitalisation method.

• The stocks must be traded on the BSE and shall be domiciled in India.
• The stocks must form part of the Infrastructure group and should be divided into five groups, such as construction & Engineering, Energy, NBFCs, Transportation, and utilities.
• The criteria for the cap on the infrastructure must be capped on the 10 stocks.
• Inclusion of only common shares of the company.
• The stock must have a trading and listing history of the past six months.
•  The average daily free float market capitalisation of the stock should have a cap value of at least ₹ 1 billion. For the current companies, it should be 800.
• The annualised traded value of the stock shall be at least ₹ 200 million—800 million for the current companies.
• The turnover ratio of the stocks in the BSE India Infrastructure Index shall be at least 10%.
• The criteria for the top 30 companies shall be ranked based on average daily total market capitalisation methods, with compulsory inclusion of data from the past six months.

The calculation of the BSE Infrastructure Index is based on the free-float market capitalisation, using the methods of the Dow Jones equity indices. Also, it fulfils the criteria of the Index before calculation.

If the eligibility criteria of the Index are not fulfilled, then the value of the stock is not determined. The eligibility criteria require that the companies must be listed on the BSE, ranking criteria for the selection of the stocks is based on the whole market capitalisation method, and the annualised trading value of at least 80 billion.  

Several eligibility requirements for the BSE Infrastructure Index must be fulfilled.

The formula of the BSE Infrastructure Index = Index Market Value/ Divisor.

Index Market Value = Price* Shares* IWF(Float Factor)* F* Rate

• The Index is used to track the performance of the infrastructure-related companies, such as power, telecom, transport, energy, and construction.
• It plays a crucial role in the development of the Indian Economy, as the status of any city is defined by its infrastructure, so the intervention of the government in this sector is also very significant.
• The BSE Infrastructure Index offers a scope of diversification across various sectors, including power, telecom, transport, energy, and construction, which helps reduce the risk of overdependence on a single segment.

• The intervention of the government in the BSE Infrastructure Index is very high, so the changes in the policies, approvals, and regulations may affect the market prices.
• The requirements of the large infrastructure projects often lead to high operating costs and financial risk.
•  Acquisition issues, legal disputes, raw material shortages, or bureaucratic bottlenecks can lead to delays in investing in stocks.  

Direct investing in the BSE India Infrastructure Index is also possible, allowing investors to invest directly in the BSE Infrastructure Index through the stock market. The other indirect method is that investors can invest through funds, ETFs, or derivatives by linking to it. Some fund houses may launch ETFs or Index Funds which is weighted similarly to the free-float weighted method. Most ETFs in India track the Sensex, Nifty 50, Nifty Next 50, not directly LCTMCI.

SEBI mandates that large-cap mutual funds invest in the top Infrastructure stocks of at least 80%. The portfolios in the mutual funds analyse the Infrastructure universe, if it is used as a benchmark for the investors. They can invest through the Futures and Options on major BSE indices. It is used chiefly for institutional hedging, not retail.  Investors can also replicate the Index manually by buying the top infrastructure companies by total market capitalisation in the same weights. It seems complicated for retail investors due to capital requirements and other rebalancing costs.

The BSE India Infrastructure Index represents the top 30 Indian companies that are engaged in the infrastructure and its related operations, which fulfil the investability requirements. It acts as a benchmark for investors to measure the performance of the infrastructure sector. The Infrastructure stocks are divided into seven sectors, such as Capital Goods, Power, Transport Services, Oil & Gas, Finance, Utilities, and Housing. The BSE India Committee establishes the BSE India Infrastructure Index, which is managed by the same entity, Asia Index Private Ltd. 

The calculation of the BSE Infrastructure Index is based on the free-float market capitalisation, using the methods of the Dow Jones equity indices. Also, it fulfils the criteria of the Index before calculation. The stocks must form part of the Infrastructure group and should be divided into five groups, such as construction & Engineering, Energy, NBFCs, Transportation, and utilities. The BSE Infrastructure Index is diversified across various sectors such as Power, Capital Goods, Transport Services, Oil & Gas, and many more.