BSE captures the gainers and the losers on a real time basis. Gaines and losers are always with reference to the closing price on the previous trading day. The BSE gainers are indexed descending from big gainers to small gainers. In terms of BSE losers, they are indexed from big losers to small losers. The BSE gainers and losers have a lot more of granular classification. Here are key return classifications that the BSE provides:
Classification on Group
The first classification that the BSE provides is based on the group to which the stock belongs. For example, the frontline stocks on the BSE are all classified as “A” group stocks. One can filter the gainers and losers separately on this group. Then there are “B” group stocks which cover the second lot of mid cap and small stocks, and the gainers and losers can be indexed on this group too. Then there is a separate filtering of “M” group stocks that represent the small and medium enterprises. You can also filter on the “T” Group and “Z” group stocks separately. The “T” group are the stocks in the Trade-2-Trade Segment while the “Z” group are the ones that have failed to comply with regulations. Of course, one can also filter on the full universe.
Classification based on Indices
Another sorting that the BSE gainers and losers offers is that you can classify based on the various indices. For example, you can filter gainers and losers only within the Sensex or only within the BSE 100 or only within specific sectoral indices. This is useful if you are very clear on the stock segment you want to focus on. This classification is useful to investors because there are more than 5,000 stocks listed on the BSE and this permits granular filtering.
Return-based Classification of Indices
This is a filtering of gainers and losers based on significance. For example, you can filter gainers > 10% or gainers > 5% or gainers > 2%. Similar filtering can be done for the losers also. This filter can be applied to the entire universe of stocks or it can be applied to specific groups like A or B or T etc. Similarly, this value filter can also be applied to specific indices.
How to Interpret BSE Gainers and Losers?
Gainers and losers on the BSE are intended to give a quick and rapid idea of which stocks are doing well and which stocks are doing badly. It also shows you where the momentum of the market is favourable and where it is unfavourable if you combine gainers/losers with volumes. These can be very useful cues for traders. More so, the granular classification of the gainers and losers into groups and indices helps to focus attention on a target universe.
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