Sharp reaction to CPSE Index Changes

One of the world’s largest transmission utilities

Constitute of CPSE Index

Bharat Electronics Ltd, Coal India Ltd, SJVN Ltd, NBCC (India) Ltd,NLC India Ltd,NTPC Ltd, Oil & Natural Gas Corporation Ltd,Oil India Ltd, Power Grid and Cochin Shipyard .

Why CPSE Index was formed?

To facilitate Government of India’s dis-investment initiative; some of its stake in selected Central Public Sector Enterprises were traded trough ETF route.

Recent changes in Index is effective from 23 Jan 2020.

How market reacted?

Share prices of recently included CPSE i.e. Cochin shipyard, NHPC, NMDC AND Power Grid corporation are on sharp rise on hope of increase participation on institutional investors in coming days.While excluded Indian Oil Corporation and Power Finance Corporation have seen sharp decline in last few days. Share prize of Indian oil corporation is trading near 52 week low.

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