Midcap Cnx

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  • Topic: Stock market, Market capitalization, Free float
  • Pages : 3 (824 words )
  • Download(s) : 38
  • Published : December 1, 2012
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The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the CNX Midcap Index is to capture the movement and be a benchmark of the midcap segment of the market.  Methodology: The CNX Midcap Index is computed using free float market capitalization method with base date of Jan 01, 2003 and base value of 1000, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, right issue, new issue of shares etc. without affecting the index value.  Market Representation: The CNX Midcap Index represents about 11.08% of the free float market capitalization of the stocks listed on NSE as on September 28, 2012. The traded value of all CNX Midcap Index constituents for the last six months ending September 2012 is approximately 17.14% of the traded value of all stocks.  Selection Criteria: The criteria for the CNX Midcap Index include the following: 1. All the stocks, which constitute more than 5% market capitalization of the universe of the stocks traded on NSE (after sorting the securities in descending order of market capitalization), shall be excluded in order to reduce the skewness in the weightages of the stocks in the universe. After step (1), the weightages of the remaining stocks in the universe is determined again. After step (2), the cumulative weightage is calculated. After step (3), companies which form part of the cumulative percentage in ascending order up to first 75% (i.e. 74.99%) of the revised universe shall be ignored. After step (4) all constituents of S&P CNX Nifty shall be ignored. From the universe of companies remaining after step (5) i.e. 75 % and above, first 100 companies in terms of highest market capitalization,...
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