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India Index Services & Products Ltd (IISL),a joint venture of National Stock Exchange (NSE) & CRISIL,said it has decided to launch new indices CNX Consumption Index,CNX Auto Index and CNX Metal Index on Tuesday.
In continuation of its efforts to develop indices that meet the requirements of market participants,IISL proposes to launch CNX Consumption Index,CNX Auto Index,CNX Metal Index and CNX Consumption Index,a company release said.
The indices will be maintained by IISL and calculated on an end-to-day basis. The closing values of these indices would be available on http://www.nseindia.com,the release said.
The CNX Consumption Index is designed to reflect the behaviour and performance of a diversified portfolio of companies representing the domestic consumption sector.
The index is calculated using free float market capitalisation methodology with a base date of January 2,2006 indexed to a base value of 1,000. The index is capped at a stock level of 10 per cent i.e. no individual stock should have a weightage of more than 10 per cent in the index at any given point of time.
The criteria for the CNX Consumption Index includes,that the companies must rank within the top 500 companies ranked by average free-float market capitalisation and aggregate turnover for the last six months. More than 50 per cent of the company’s revenue must come from domestic markets (other than export income). The company’s trading frequency should be at least 90 per cent in the last six months. The company also should have reported a positive net worth and it should have an investable weight factor (IWF) of at least 10 per cent. The company should have a listing history of six months. A company which comes out with an IPO will be eligible for inclusion in the index,if it fulfils the normal eligibility criteria for the index for a three month period instead of a six month period.
The final selection of 30 companies shall be done based on the free-float market capitalisation of the companies and the review will be carried out on a semi-annual basis.
The sectoral indices namely CNX Auto Index and CNX Metal Index,are designed to indicate the performance of the respective underlying sectors viz. automobiles and metals (including mining) respectively.
The sectoral indices are computed using the free float market capitalisation method with a base value of 1000. The base date for CNX Auto Index and CNX Metal Index is January 1.
Among the selection criteria for the Sectoral Indices include that the companies must rank within the top 500 companies by average free-float market capitalisation and aggregate turnover for the last six months. The company’s trading frequency should be at least 90 per cent in the last six months,the release said.
