The CNX IT index provides investors and market intermediaries with an appropriate benchmark that captures the performance of the Indian IT companies. The CNX IT Index comprises of 20 companies listed on the National Stock Exchange (NSE). The CNX IT index is computed using free float market capitalization method with a base date of Jan 1, 1996 indexed to a base value of 1000 wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004. CNX IT Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETF’s and structured products. Index Variants: CNX IT Total Returns Index.
Eligibility Criteria for Selection of Constituent Stocks i. Companies must rank within the top 500 companies ranked by average free-float market capitalisation and aggregate turnover for the last six months. ii. Companies should form a part of the IT sector. iii. The company’s trading frequency should be at least 90% in the last six months. iv. The company should have reported a positive net worth. v. The company should have an investable weight factor (IWF) of at least 10%. vi. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period. vii. Final selection of 20 companies shall be done based on the free-float market capitalization of the companies Bloomberg: CNXIT Index Thomson Reuters: .CNXIT
Index Re-Balancing: Index is re-balanced on semi – annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off data is considered. Six weeks prior notice is given to market...
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