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Infosys set to enter Nasdaq-100 index

September 14, 2006 10:07 IST
Information technology bellwether Infosys Technologies is set to enter the Nasdaq-100 when the index comes up for review in December. The Nasdaq-100 includes 100 of the largest non-financial securities listed on the Nasdaq, based on market capitalisation.

Infosys will be the first Indian company to make it to the Nasdaq-100. With a $25 billion market capitalisation of American Depository Receipts, the Bangalore-headquartered Infosys is now ranked 98 on the Nasdaq.

Entering the elite group, Infosys will rub shoulders with, Google, Cisco, Red Hat, Autodesk, eBay, Juniper Networks, Yahoo, Netscapes, Oracle and Apple Corporation. Cognizant Technology, which has its biggest operation in India, joined this club in December 2004.

In terms of the total Infosys stock traded on the Nasdaq and the Indian equity market, the infotech major is much bigger than several other companies in the Nasdaq-100.

However, to qualify for Nasdaq-100,
the market capitalisation is calculated only on outstanding ADRs. The total outstanding ADRs of Infosys on the Nasdaq stands at 55,36,86,352, valuing the company at $25.46 billion, taking an average of $46 per ADR. The Infosys ADR is currently traded at $44-47 on the Nasdaq.

The Nasdaq-100 is revised once a year and the exercise starts in November. The index reflects companies across major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies, including investment companies.

In July, Infosys qualified to enter the Nasdaq's Global Select Market tier.

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Rajesh Abraham in Mumbai