India Index Services & Products Ltd (IISL), a step-down subsidiary of National Stock Exchange (NSE), today said it had decided to launch new indices - CNX Consumption Index, CNX Auto Index and CNX Metal Index tomorrow.
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 here.
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 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% i.E. No individual stock should have a weightage of more than 10% 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% of the company's revenue must come from domestic markets (other than export income). The company's trading frequency should be at least 90% in the last six months.