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MCX-SX said that the SX40 is a free float based index of 40 large cap - liquid stocks representing diversified sectors of the economy.SX40 is designed to measure the economic performance with better representation of ..

11 Feb 2013

MUMBAI (Commodity Online): After Bombay Stock Exchange Sensitive Index (Sensex) and National Stock Exchange (Nifty), India now has a third index called SX40 launched by the MCX Stock Exchange (MCS-SX) which has commenced operations on Monday.

MCX-SX said that the SX40 is a free float based index of 40 large cap - liquid stocks representing diversified sectors of the economy.SX40 is designed to measure the economic performance with better representation of various industries and sectors based on ICB®, leading global Industry classification system from FTSE. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc.

SX40 includes companies that have a minimum free float of 10%and is within the top 100 liquid companies, MCX-SX Managing Director & Chief Executive Joseph Massey said.

Key Features of SX 40
-Superior return & risk adjusted return
- A unique Index of India benchmarking global best practices of index designing
-Better Reflection of the Organized Sector in the Economy through
enhanced industry representation using ICB® of FTSE
- Rule based, transparent & replicable
- Industry capping eliminates industry bias and enhances Index stability
- Lower churning rate
- Low cost for funds (MFs, ETFs) construction and maintenance
- Low tracking error for passive portfolio management (MFs, ETFs etc)

MCX-SX, the third national stock exchange in India was formally inaugurated by Finance Minister P Chidambaram on Saturday.

BSE Sensex
The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also called the BSE 30 (Bombay Stock Exchange)or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange (BSE). The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy. Published since January 1, 1986, the SENSEX is regarded as the pulse of the domestic stock markets in India. The base value of the SENSEX is taken as 100 on April 1, 1979, and its base year as 1978-79. 

NSE Nifty
S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between National Stock Exchagne and CRISIL. IISL is India's first specialised company focused upon the index as a core product. IISL has a Marketing and licensing agreement with Standard & Poor's (S&P), who are world leaders in index service.

 


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