5 things investors need to know about BSE Greenex

The BSE Greenex index, the first eco-friendly index from the BSE, debuted on the exchange on Thursday. It opened at 1,488.7 and touched an all time high of 1,497 points before closing at 1,481.

The index includes the top 20 companies on the basis of their carbon emissions, free-float market capitalisation and turnover. The key point of this index is to help investors find companies that are eco-friendly.

Here are five facts about this new index:

•The index comprises 20 companies from the BSE 100 index and includes companies like Tata Steel, State Bank of India, BHEL, DLF, Cipla among many others. Of this, stocks from the healthcare, finance and power comprise around 22 percent, 19 percent and 13 percent of the index.

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•Tata Steel has the biggest weight in the index at 6.7 percent, followed by State Bank of India (6.65 percent), and Larsen and Toubro (6.53 percent). Reliance Infrastructure has the lowest weight of 2.16 percent.

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• According to an exchange release, over the past 12 months, the BSE Greenex Index fell only 6.26 percent compared with the Sensex, which was down 9.2 percent, and the BSE 100, which was down 6.2 percent.

•According to the exchange, if a company is removed from the BSE 100 index, it will be removed from the Greenex index as well.

•The index will be reviewed twice a year - March and September.