Sharia 50 Index by Bombay Stock Exchange

The BSE TASIS Shariah 50 index, launched on Monday, consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500 Index. It is the first Shariah compliant equity index in India to be publicly disseminated on a real-time basis, providing a new tool for use by Islamic and other socially responsible investors to track the performance of India’s largest and most liquid Shariah compliant stocks.

BSE has partnered with TASIS, the premier Indian Shariah advisory firm to ensure that all stocks included in the BSE TASIS Shariah 50 meet the strictest possible Shariah compliance norms. Stocks are included through two types of screening, business screening and interest activity screening. Business screening ensures that companies selected are not in the business that derives significant benefit from interest or the sale of other goods and services such as alcohol, tobacco, firearms, vulgar entertainment etc. Interest Activity Screening ensures that companies involved in interest-bearing activities are within Shariah tolerance levels.

Not only Muslims, but any socially responsible investors of any faith may find this index and related investment products useful as companies deemed to be socially harmful are removed from the index.

As BSE claims in its fact sheet, the Shariah 50 has outperformed the SENSEX by nearly 25% and the BSE 500 by over 30% over its back-test horizon (beginning 1/1/08). Over this period, annualized volatility for the Shariah 50 was also less than both SENSEX and the BSE 500 by nearly 5 percentage points.

Now for individuals who stay away from investing in stock market with fear of non-compliance with Sharia principle can refer to this index to find companies comply with Sharia principles. It is updated every month to drop any company that ceased to be in compliance and new companies are added every quarter in place of dropped companies. Daily price movement can be seen here. For more information on the individual company, please click on the company name below.

List of Companies

ABB Dr Reddys Lab Mphasis
ACC Exide Inds MRF
Alstom Projects Gail India Nestle India
Ambuja Cements Glaxosmithkl Cons ONGC
Areva T&D Godrej Cons Opto Circuits
Ashok Leyland Grasim Inds PTC India
Asian Paints Hero Honda RIL
Bajaj Auto Hindalco Inds Siemens
BEML Hindustan Copp Sterling Intl
Bharti Airtel Hindustan Unilever Tata Global Beverages
BHEL Lanco Infra TCS
Castrol India Lupin Tech Mahindra
Cipla Mahindra & Mahindra Thermax
Colgate Palmolive Mangalore Ref Titan Inds
Crompton Greav Maruti Suzuki Ultratech Cem
Cummins India Mcleod Russel Voltas
Dabur India Wipro

Sectorwise Weightage

Sl No Sector %
1 Oil & Gas 31.59
2 Transport Equipments 13.36
3 Information Technology 12.44
4 Capital Goods 8.94
5 FMCG 8.47
6 Healthcare 6.39
7 Telecom 5.23
8 Housing Related 4.00
9 Metal,Metal Products & Mining 3.85
10 Textile 1.84
11 Chemical & Petrochemical 1.55
12 Consumer Durables 0.88
13 Power 0.88
14 Diversified 0.58
Total 100.00

Related Links:

BSE TASIS Shariah 50 Index Factsheet.pdf

Scripwise Price Movement in SHARIAH 50

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