UI 44 Average: 1,138.17 +14.03
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UNIDOW & Company decided to change composition of UI 44 Average from Monday, 11 May 2020 by including six large Indian companies.
Sunday, 19 Apr 2020.
Amidst the global health crisis caused by the novel coronavirus disease of 2019, equity markets around the world have lost more than one-fourth of its value since 24th Feb 2020. In such testing times, investors dumped equities and shifted to Gold and US Dollar related investment vehicles. However, at certain times even the glittering yellow metal had fallen when equity investments suddenly lost its value and investors rushed to sell it to prevent airbags being inflated - kindled by margin calls.
The UNIDOW Industrial 44 Average too has fallen more than 25 per cent during the Ides of March and nearly 40 per cent just on a day of 23rd Mar - when it completed a month of brutal show, started in February. Nevertheless, the recovery was there which was on a belief that the economic recovery will be rapid, since it's a temporary halt and was uninvited at a time when the economic engine were almost at its fullest potential. The Indian economy, however, is expected to take longer time to recover which might cause by displacement of labour force from the cities. This will further aggravate the situation as perturbed by the infectious disease amongst the class of people who have no proper access to healthcare and sanitation facilities. With enforced lockdown across the country, Indian administration locally and at the centre must have to address the woes of homeless and jobless - which themselves constitute almost half of the total population of the country and could menace the healthcare system in the given infrastructure. Several banks, brokerages and institutions have released annual GDP growth projections for India, varying from negative 2 per cent growth to 3.5 per cent above zero. Yet, the evident outcome from the global health crisis is categorically uncertain on the economy and this require sensitive and transparent information on the COVID-19 cases in the country and governments' response to it. At UNIDOW, we perhaps believe that India may reach its significant economic growth potential only by June next year or even later.
Let's discuss the reconstitution of UNIDOW Industrial 44 Average, an equity index of UNIDOW Indices, after a sharp drop in the equity markets. UNIDOW & Company has decided to remove the following companies from the index with effect from Monday, 11 May 2020:
Above listed companies have fallen between 25 per cent and 81 per cent since last year and their FECS score is eroded, which undermines the performance of UI 44 Average. Six large Indian companies will replace are:
The above changes will not add any new industry but will replace by Electric Utilities, Real Estate Management & Development and Media (Movies & Entertainment) which will underscore the growth prospect in the Indian economy and the performance of UNIDOW Industrial 44 Average.