Days Range
Company | LTP | Change | Day Range |
|---|
Sector Name | Advances | No Change | Declined |
|---|
Currently, the realty sector contributes 6-7% to the GDP of India. This figure is expected to grow and reach $ 1 trillion by 2030. It is expected to contribute more than 13% to the GDP by 2025. Given the considerable contribution of the real estate sector to the Indian economy, it can be said that it plays a crucial role in helping us determine the economic health of the country. It is also a large generator of employment for the youth.
S&P BSE realty is an index that measures the performance of the companies that are classified as belonging to the realty sector and are the constituents of the BSE 500. The companies considered to be a part of the real estate sector are sorted based on their float-adjusted market capital, and the top companies are included in the BSE realty index. All the companies involved in buying and selling of lands or buildings and buying or selling of residential or non-residential properties are known as realty sector companies. Here properties refer to fixed properties like lands, buildings, complexes, etc.
The prices of BSE realty are calculated continuously in real-time to provide the investors with a better picture of the industry and its future outlook. The index value is influenced by the BSE realty share price changes. All the stocks that are a part of the BSE realty index are also a part of the BSE 500. In other words, all the constituents of BSE realty are selected from the BSE 500 index.
This index was launched on 9 July, 2007. January 2, 2006, was taken as the base date for calculating the value of the index. BSE realty share price is calculated using the float-adjusted market capitalization method. Under this method, the total market cap of the stock is adjusted with the free-float factor, and the float-adjusted market cap is calculated.
There are a total of 10 stocks in the BSE realty index currently, and they together have an average market cap of INR 251,405.54 million. The index is also rebalanced twice every year in June and December. Any new stocks are added, and any existing stocks that do not meet the selection criteria are excluded from the index.
All the eligible stocks that fulfil the eligibility criteria and are selected for consideration are ranked according to their float-adjusted market capitalization. The top 10 companies in terms of float-adjusted market capitalization are selected for inclusion in the index.
Let’s illustrate this with an example -
Company N has 5 lakh shares listed on BSE. Out of these, only 50% can be traded freely. The market price of the stock is INR 500. Then, it is calculated as follows -
| Total Shares in Market for Company N | A | 5 lakhs |
| Market Price per share of Company N | B | INR 500 |
| Total Market capitalization | C = A*B | INR 25 Crores |
| Free-float factor (50%) | D | 0.5 |
| Free-Float Market capitalization | E = C*D | INR 12.5Crores |
After calculating the float-adjusted market capitalization for every stock, all the figures are added and then divided by the base year’s market cap and multiplied by 100. Given below is the formula for calculation -
| BSE Realty Share Price Today = Total Free-Float Market capitalization x 100 / Base Market capitalization |
Given below are the conditions that every stock needs to meet to be included in the BSE realty index.
