The decade of 1990s saw the emergence of the TMT sector as a major force in the Indian economy. The remarkable growth of this sector was reflected in the financial markets.

Going by the trading pattern, around 19% of the turnover on the stock exchanges is taking place in TMT sector stocks. These stocks collectively account for 15% of the total market capitalization. The investment interest in technology stocks continues unabated.

Recognizing the growing importance of the TMT sector, BSE TECk index was launched in 2001.

Source : BSE

The general guidelines for selection of constituents in BSE TECk are as follows:

Eligible universe
Scrips classified under information technology, media and telecom sectors that are present constituents of BSE-500 index form the eligible universe.

Trading Frequency
Scrips should have a minimum trading frequency of 90% in preceding three months.

Market capitalization
Scrips with a minimum of 90% market capitalization coverage in each sector based on free-float final rank form the index.

Buffers
A buffer of 2% both for inclusion and exclusion in the index is considered so that movements in and out of the index are minimized. For example, a company can be included in the index only if it falls within 88% coverage and an existing index constituent cannot be excluded unless it falls above 92% coverage. However, the above buffer criterion is applied only after the minimum 90% market coverage is satisfied.

Source : BSE