“When we heal the Earth, we heal ourselves”- David Orr. Regrettably we are yet to realize it! Many Socialists are preaching it by way of Corporate Social Responsibility. India being one of top five carbon emission countries holds prime responsibility to curb these greenhouse gas emissions. With this intention, our Indian stock market also takes a step ahead to launching a BSE India Greenex i.e. BSE Green Index!
BSE Greenex by BSE India is the second such subject matter index. Initially BSE India had launched BSE Shariah Index. This BSE index includes only clean stocks which do not deal in Liquor, Entertainment, Banking, Defense etc. sectors. The basic reason was to attract the Arab investors who invest in such clean stocks only.
This BSE Greenex will comprise of 20 stocks based on market capitalization, turnover and most importantly the contribution of a stock towards minimizing carbon emissions. The BSE India forum will evaluate this on the basis of energy efficiency and by default the stock’s financial data. Currently the stocks which capture the top positions in this BSE Greenex are BHEL, the weightest stock, followed by Sunpharma, Tatamotors, NTPC, HUL. This BSE India index also constitutes; SBIN, Tatasteel, Tata Motors and Sterlite Industries.
These BSE NSE stocks have started receiving subscriptions from the socially and environmentally aware individual investors that too at a premium share price anticipating the better returns in future. This analysis will recommend the stocks good from point of view of building a portfolio and not for trading purposes. This BSE Greenex would not be used for trading. Later a Mutual Fund would also introduce this BSE index so that the common investors can invest in the same.
Though the BSE Greenex is for a social cause, one should bear in mind that it is a part of the Stock market. So the retail investors or the traders should also consider other fundamental and technical aspects when they will invest directly into individual stocks.
On the global front many other stock markets have contributed to such social causes by introducing such theme based Indices like; the Global Water Index, Global Luxury Index FTSE’s Good Index. Likewise our Indian stock market and thereby BSE India too has begun this ethical investing journey in the form of BSE Greenex…so when will you?????
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Author: Niveza Exchange