Infy makes it to Nasdaq-100

Infosys Technologies has become the first Indian company to book a place in the reputed Nasdaq-100 Index, after the annual re-ranking of the Nasdaq-100 Index, to be made effective from December 18.

The Nasdaq-100 Index is composed of the 100 largest non-financial stocks on the Nasdaq stock market and dates to January 1985 when it was launched along with the Nasdaq Financial-100 Index, which is comprised of 100 largest financial stocks on the Nasdaq.

"The Nasdaq-100 Index is one of the world's most recognised benchmarks which owes this distinction to its components: companies that are leaders in a diverse range of industries," said Nasdaq executive vice- president John L Jacobs.

"The annual re-ranking of the Nasdaq-100 Index is an objective, transparent process that culminates in the formation of a select group of companies in a global benchmark that is the basis of dozens of licensed innovative investment products throughout the world."

Under the re-ranking, the US bourse made three additions into the Index.

In addition to Infosys Technologies, the other two companies which would enter the index are Level 3 Communications Inc and Vertex Pharma ceuticals.

Infosys became a likely entrant last month after it sold 30 million American Depositary Receipts for $1.6 billion, increasing its market value.

The Nasdaq-100's tracking shares, known by their QQQQ symbol, traded an average 109 million shares a day this year.

These indexes were originally designed to segment Nasdaq into two major industry groups to support media coverage and to act as benchmarks for licensed financial products such as options, futures, and funds. The Nasdaq-100 is re-ranked each year in December.

On a cumulative price return basis, the Nasdaq-100 Index has risen over1,333 per cent since inception, and it has outperformed several major domestic and international stock indexes for the ten-year period ended November 30, 2006.

For the most recent one, five, and ten-year periods ended November 30, 2006, the cumulative return of the Nasdaq-100 Index was 7.1 per cent, 12.2 per cent and 114.8 per cent, respectively.

As a result of the re-ranking of the Nasdaq-100 Index, the following three companies will be removed: JDS Uniphase Corporation, Lincare Holdings and Urban Outfitters, Inc.

Last year, there were 12 additions to the index. Google Inc., owner of the most-used Internet search engine, joined the gauge three months before it was added to the Standard & Poor's 500 Index.