NSE CNX IT Sector Index
Information Technology (IT) industry has played a
major role in the Indian economy during the last few
years. A number of large, profitable Indian companies
today belong to the IT sector and a great deal of
investment interest is now focused on the IT sector. In
order to have a good benchmark of the Indian IT sector,
IISL developed the CNX IT sector index.
Companies in this index are those that have more than
50% of their turnover from IT related activities like
software development, hardware manufacture, vending,
support and maintenance. The index is a market
capitalisation weighted index with its base period being
December 1995 and the base date and base value being
January 1, 1996 and 1,000 respectively.
NSE CNX IT Sector Index
CNX IT Index is an index comprised of the most liquid
and large capitalization IT stocks, traded on the NSE,
engaged in the business of software or hardware. CNX IT
provides investors and market intermediaries with an
appropriate benchmark that captures the performance of
the IT segment of the market. The index is a market
capitalization weighted index with base date being 1st
January 1996 and base index value being 1000. Companies
selected in the index have to be IT stocks which should
rank high in terms of market value represented by their
market capitalization and liquidity.
The Base Value of the index is being revised from 1000
to 100 w.e.f. 28 May 2004.
Method of Computation
The CNX IT Index is calculated using the market
capitalisation weighted aggregate method.
Selection Criteria
- Market Capitalisation
The influence of each company on the index is
directly proportional to its market value.
Therefore, a company’s rank based on the average
market capitalisation over a 6 month period is an
important consideration for its selection in the CNX
IT Index.
- Trading Interest
The companies considered for inclusion must rank
among the highest in the IT sector in terms of
annual trading turnover and must have demonstrated a
high level of trading frequency in the previous 6
month period.
- Others
A company which comes out with a IPO will be
eligible for inclusion in the index, if it fulfills
the normal eligiblity criteria for the index for a 3
month period instead of a 6 month period.
List of CNX IT Sector Index stocks:
View |
Download
|
