By Rehan Ansari, TwoCircles.net,
Mumbai: Investors lost nearly 1.3 lakh crore after India’s leading index BSE lost 387 points on Friday. Many Global and local concerns mixed with FII’s thin participation led to the fall of nearly 700 points at one point of time eroding 2.5 lakh crore but index recovered at the end of the day.
Whereas BSE Shairah TASIS index, lost just 18 points to close at 1108.08 after opening on higher notes at 1112.6. Looking at the depth of the BSE TASIS Shariah index, 41 out of 49 existing shares were down and 8 companies share closed on higher prices.
Dr. Sharique Nisar
Dr. Sharique Nisar, the man behind the BSE Islamic Index and member of Taqwaa Advisory And Shariah Investment Solutions (P) Ltd. (TASIS) talking to TwoCircles.net said, “The recent fall not only in India but the world over is mainly due to poor performance of the interest based financial sector and BSE TASIS Index consists of the shares of Real economy sector that will naturally resists any fall and hence there is not much effect on our index.”
Referring to the recent USA debt crisis he predicted that the fall in financial sector will continue in the near future and will dampen the growth all over the world except real economy sectors that will resist.
The BSE TASIS Shariah comprises shares of real economy sectors companies like, Oil and Gas, IT, FMCG, Transport Equipment, Health care, housing, textile etc to name the few. But no stock has more than an 8% weightage.
The Shariah index did not have any financial sector companies because they are interest based that is Prohibited (Haram) in Islam.
Bombay Stock Exchange
The stock screening has been done on monthly basis by TASIS scholar board, and the index construction by BSE.
The Bombay Stock Exchange (BSE) launched an index comprising stocks compliant with Islamic laws called the BSE Tasis Shariah 50. The index consists of the 50 largest and most liquid Shariah compliant stocks within the BSE 500. The bourse has partnered TASIS for index.
Taqwaa Advisory And Shariah Investment Solutions (P) Ltd. (TASIS) was founded by a group of finance and investment professionals who realized the need for a credible organization for providing guidance and support to individuals and corporates having an interest in the nascent but highly potential Islamic finance industry in India. As the name suggests, it is an organization providing Shariah advisory and investment solutions in India, while operating within the Indian legal framework.