CNX Nifty Index was developed by Ajay Shah and Susan Thomas

Nifty is NSE of India's benchmark stock market index for Indian equity market

Owned and managed by India Index Services and Products Limited (IISL)

Index tracks the behaviour of a portfolio of blue chip companies, the largest and most liquid Indian securities.

Represent about 65% of the total float-adjusted market capitalization of the NSE

It is a diversified index, accurately reflecting the overall market. The reward-to-risk ratio is higher than other leading indices, offering similar returns but at lesser risk.

Market impact cost is the best measure of the liquidity of a stock

Basic risk of the CNX Nifty futures is lower than other index portfolios, due to the liquidity of the CNX Nifty constituent stocks

A stock index is a measurement of the value of a section of the stock market

Nifty uses market capitalization weighted index

A capitalization-weighted index, is a stock market index whose components are weighted according to the total market value of their outstanding shares

Individual stock's price changes and thereby changes a stock index's value

Paid up Capital equity capital shall not

be less than 10 crores and capitalisation

of equity shall not be less than 25 crores

At least three years track record (Annual

report) of the applicant’s seeking listing

The company must be domiciled in India

The company should have an investable weight factor (IWF) of at least 10%

Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible

Companies eligible for inclusion in the CNX Nifty must have at least twice the float-adjusted market capitalization of the current smallest index constituent.

Market Capitalization = Equity Capital *

Price

Free Float Market Capitalization = Equity

Capital * Price * Investible Weight Factor

Index Value =

Current Market Value

Base Market Capital * Base Index Value (1000)

It is a benchmark indicator of all the major companies of the BSE.

Sensex is abbreviated form of BSE-sensitive index, is a “free

float market capitalization weighted” index of 30 stocks

representing a sample of large well established and financially

sound companies.

Note: Only those shares issued by the company that are readily

available for trading in the market. It generally excludes promoters'

holding, government holding, strategic holding and other locked-in

shares that will not come to the market for trading in the normal

course

Sensex = Free Float market Capitalization

Index Divisor

Index Divisor = Previous day free float Market Capitalization

Previous day sensex value

Suppose the Previous day free float

market capitalization is Rs. 3,00,000 crores

and Previous day Sensex value is 20,000

points.

Accordingly, Index divisor becomes 15

Now, suppose Current day free float

market capitalization increases to Rs.

3,30,000 hence, current day Sensex is

22,000 points.

Date of launch

Method of calculation

01-01-1986

Launched on full market

capitalization method shifted to free floated market capitalization.

No of scrip's 30

Index calculation frequency

15 seconds

Scrip

1. A written document that acknowledges a debt.

2. A temporary document representing a fraction of a share . Scrip is not

currency but may be convertible into currency.

KEY POINTS OF BSE

Market capitalization: The company should have a market capitalization in the Top

100 market capitalization’s of the BSE.

The market capitalization of each company should be more

than 0.5% of the total market capitalization of the Index.

Trading frequency: The company to be included should have been traded on

each and every trading day for the last one year.

Number of trades: The scrip should be among the top 150 companies listed by

average number of trades per day for the last one year.

Criteria for listing of scrip's

Industry representation:

The companies should be leaders in their industry

group.

Listed history:

The companies should have a listing history of at least

one year on BSE.

Track record:

In the opinion of the index committee, the company

should have an acceptable track record

Continued..

Sector Composition