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INDEX OF INDIA                                                                               Key Features  About          ...
INDEX OF INDIA              Performance                                                                                   ...
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Sx40

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Transcript of "Sx40"

  1. 1. INDEX OF INDIA Key Features About • Superior return & risk adjusted return • A unique Index of India benchmarking global best practices SX40 is the flagship Index of MCX-SX. A free float based index of 40 of index designing large cap - liquid stocks representing diversified sectors of the economy. • Better Reflection of the Organised SX40 is designed to measure the economic performance with better Sector in the Economy through representation of various industries and sectors based on ICB®, leading enhanced industry representation global Industry Classification system from FTSE. The Index is devised to using ICB® of FTSE offer cost-effective support for investment and structured products • Rule based, transparent & replicable such as index futures and option, index portfolio, exchange traded funds, Index funds, etc. • Industry capping eliminates industry bias and enhances Index stability Objective • Lower churning rate SX40 is designed to be a performance benchmark and to provide for efficient investment and risk management instrument. It would also • Low cost for funds (MFs, ETFs) help in structuring passive investment vehicles. construction and maintenance Investability • Low tracking error for passive port- folio management (MFs, ETFs etc) Free-float weighted to bolster efficient investability. Transparency Index rules are overseen by an independent index committee Selection Criteria comprising of leading investment industry professionals, academicians, • Underlying stocks must have a and financial experts. The Committee also monitors constituent positive net-worth liquidity to ensure efficient portfolio trading while keeping index turnover to a minimum. Complete details of these guidelines, including • The stock must have free float of at least the criteria for index additions and removals, policy statements, and 10% & within top 100 liquid companies research papers are freely and transparently available in public domain. • Industry capping – at 20% (±)2% band These guidelines provide complete transparency and fairness. • Fast Entry for companies with better Availability free float market cap and liquidity Calculated and disseminated based on real time basis. • Top 40 companies meeting above criteria constitute SX40 www.mcx-sx.com
  2. 2. INDEX OF INDIA Performance 125 Index Returns (%) SX40 Nifty Sensex 120 SX40 NIFTY SENSEX FY 2010-11 11.7 11.1 10.9 115 110 FY 2011-12 -8.8 -9.2 -10.5 105 FY 2012-13* 14.2 14.0 14.3 100 95 2010 – 2013* 16.3 15.0 13.5 90 85 Apr10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Constituents • ACC Ltd. Industry Weights (%)* Quick Facts • Ambuja Cements Ltd. SX 40 Nifty Sensex • Index Universe: • Asian Paints Ltd. Basic Materials 4.7 4.6 5.9 Large Cap companies • Bajaj Auto Ltd. Consumer Goods 18.2 14.7 17.2 • Bharat Petroleum Corp Ltd. • No. of Companies: 40 • Bharti Airtel Ltd. Consumer Services 0.7 0.0 0.0 • BHEL Financials 22.0 29.4 26.4 • Index Launch: • Cairn India Ltd. Health Care 5.1 4.9 4.5 February 11, 2013 • Cipla Ltd. Industrials 14.8 15.5 12.0 • Coal India Ltd. • Base Date: • Dr. Reddys Laboratories Oil & Gas 14.8 13.1 14.7 March 31, 2010 • Gail (India) Ltd. Technology 14.2 12.7 14.2 • HCL Technologies Ltd. Telecommunications 2.4 2.1 2.7 • Base Value:10,000 • HDFC Bank Ltd. Utilities 3.1 3.1 2.5 • Currency: Indian Rupee • HDFC Ltd. • Hero Motocorp Ltd. • Index Basket Recasting: Index Characteristics (%) SX40 Nifty Sensex • Hindalco Industries Ltd. Semi-Annually • Hindustan Unilever Ltd. Weight of the largest • ICICI Bank Ltd. constituent* 9.4 8.8 10.3 • Minor Share Issuance • Infosys Ltd. Top 10 Holding* 62.4 57.4 67.8 adjustment: Monthly • ITC Ltd. • Jaiprakash Associates Ltd. International Practices • Jindal Steel & Power Ltd. • Larsen & Toubro Ltd. Parameters SX-40 International Practices NSE • Lupin Ltd. Minimum Free Float 10% FTSE-25%, CAC 20%, S&P 500- 50% 10% • Mahindra & Mahindra Ltd. Liquidity Within Top 100 NIKKEI: Turnover as Liquidity Impact cost • Maruti Suzuki India Ltd. • Ntpc Ltd. Review Semi-Annually Quarterly, Half yearly, Annual, Need Based Semi-Annually • Oil and Natural Gas Corp. Minor Share Issu- Monthly DAX, FTSE: QTRLY, 10% and above Monthly • Power Grid Corp. Ltd. ance adjustment changed else annual, Nasdaq, S&P 500 • Reliance Industries Ltd. Free Float Change Qtrly if less than 5% • Sun Pharmaceuticals Ind. • Tata Consultancy Serv Ltd. Industry Cap 20% TSX &various variants of other Indices No • Tata Motors Ltd. Industry ICB® STOXX/ FTSE, NASDAQ, NYSE, LSE, Internal • Tata Power Co Ltd. Classification Kuwait SE, SGX, Taiwan SX • Tata Steel Ltd. *As on January 31, 2013 • Titan Industries Ltd. • United Spirits Ltd. Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093 • Wipro Ltd. Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004 • Zee Entertainment Ltd. Email: index@mcx-sx.comDisclaimer: All the information in the brochure, including, but not limited to, characters, data, charts and tables (hereinafter referred to as “information”) are properties of MCX-SX Stock Exchange Ltd. (hereinafter referred to as “MCX-SX”) exceptbrands names and logos if any belonging to other persons. The contents of this documentare solely for informationalpurposes. It is not intended to be used as trading advice by anybody and should not in any way be treated as arecommendation to trade. While the information in the document has been compiled from sources believed to be reliable and in good faith, recipients and audience of this document may note that the contents thereof including text,graphics, links or other items are provided without warranties of any kind. MCX Stock Exchange Ltd.(MCX-SX) expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or fitness for any particularpurpose and shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data contained in this document.The charts and graphs may reflect hypothetical historicalperformance. All information presented prior to the index inception date is back-tested. Back-tested performance is not actual performance, but is hypothetical. SX-40 and the SX40 logo are proprietary trademarks of MCX-SX.

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