S&P Indices has launched a new index to measure the returns on exposure to the Indian equities, based on Singapore Exchange (SGX)-listed S&P CNX Nifty Index futures prices.
"The S&P CNX Nifty Futures Real-time Index was created for international investors seeking an efficient way to measure the performance of the fast-growing Indian economy and equity market," said Michael Orzano, Associate Director of Global Equity Indices at S&P Indices.
"The Index is also designed to serve as the basis for tradable products, opening an important portal for global investors into the Indian market," said a statement from S&P and SGX late last night.
The index tracks the performance of a portfolio holding a single SGX Nifty Futures, reinvested on a monthly basis.
The Index series is based on the front month Nifty Futures contract traded on SGX and reinvestment occurs over a three business day period preceding expiration, the statement said.
The SGX Nifty Futures is based on the S&P CNX Nifty Index, the headline index of the National Stock Exchange of India which is owned and managed by India Index Services & Products Ltd.
"The underlying futures contract is liquid and US dollar- based, making the index a unique and investable benchmark for international fund managers to gain exposure to India's equity capital market," said Michael Syn, Head of Derivatives at SGX.
