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Our Bureau

Mumbai , June 21

Indian companies, HDFC Bank Ltd, ICICI Bank Ltd, Infosys Technologies Ltd and Satyam Computer Services Ltd, figure in Standard and Poor's BRIC 40 Index, launched on Wednesday providing exposure to 40 leading companies from the emerging markets of Brazil, Russia, India and China, an official statement said.

The constituents of the index are large, well-traded, liquid companies currently trading on the developed market exchanges of the Hong Kong Stock Exchange, the London Stock Exchange, Nasdaq and NYSE.

"Securities in emerging markets are an increasingly popular option for investors, asset managers and plan sponsors; however, liquidity of the issues continues to be a cause for concern," the news release said quoting Mr David Blitzer, Managing Director and Chairman of the Index Committee at Standard and Poor's.

"The construction of the S&P BRIC 40 Index accounts for both the liquidity of the underlying stocks, as well as the liquidity of the overall portfolio resulting in an index which is more efficient to invest in," he was quoted as saying.

The S&P BRIC 40 Index, which has licensed products based upon it, would be calculated by means of the divisor method used in most Standard & Poor's indices and rebalanced annually and treat corporate actions in a transparent procedure.

The index would use a modified market capitalisation weighting scheme, with modifications to market cap weights, if required, to reflect available float, reduce single stock concentration and enhance index basket liquidity.

Constituent companies are also members of the S&P/IFCI index series that meet minimum market capitalisation and liquidity requirements.

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HDFC Bank, ICICI Bank, Infy, Satyam in S&P BRIC index

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