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S&P CNX Nifty is a well-diversified 50 stock index accounting for 23 sectors of the economy.

It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives, structured products, ETFs and index funds. S&P CNX Nifty is based upon solid economic research and is well respected internationally as a pioneering effort in better understanding how to make a stock market index. Highlights S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India’s first specialized company focused upon the index as a core product. IISL has a licensing and marketing agreement with Standard and Poor’s (S&P), who are world leaders in index services. Market Representation S&P CNX Nifty stocks represent about 66.96% of the total free float market capitalization of the universe of the stocks traded on NSE as on June 29, 2012. Diversification: S&P CNX Nifty is a diversified index, accurately reflecting overall market conditions. The rewardto-risk ratio of S&P CNX Nifty is higher than other leading indices, making it a more attractive portfolio hence offering similar returns, but at lesser risk. Liquidity Market impact cost is the best measure of the liquidity of a stock. It accurately reflects the costs faced when actually trading an index. For a stock to qualify for possible inclusion into the S&P CNX Nifty, it has to reliably have market impact cost of below 0.50 % when doing S&P CNX Nifty trades of Rs. 20 million. Eligibility Criteria for Selection of Constituent Stocks The constituents and the criteria for the selection judge the effectiveness of the index. S&P CNX Nifty is unique in this respect. Selection of the index set is based on 3 criteria: • Liquidity

shares held by promoters through ADRs/ GDRs.• Floating Stock • Others For inclusion in the index. employee welfare trusts. Promoters’ holding. wherein the level of the index reflects the total free float market value of all the stocks in the index relative to a particular . market capitalization and free float. 20 Million. associate companies.50% or less during the last six months for 90% of the observations. Others A company which comes out with an IPO will be eligible for inclusion in the index. for the basket size of Rs. This is the percentage mark up suffered while buying / selling the desired quantity of a security compared to its ideal price = (best buy + best sell) /2 Floating Stock The companies eligible for inclusion in the S&P CNX Nifty Index should have free float of at least 10%. Method of Computation S&P CNX Nifty is computed using free float market capitalization method. if it fulfills the normal eligibility criteria for the index like impact cost. government holding in case of public sector undertaking. investments under Foreign Direct Investment (FDI) category (where identifiable) and public lock-ins are subtracted to arrive at Free Float factor. for a 3 month period. Free float factor (Investible Weight Factor–IWF) for each company in the index will be determined based on the public shareholding of the companies as disclosed in the shareholding pattern submitted to the stock exchanges by these companies on a quarterly basis. the security should have traded at an average impact cost of 0. Impact cost is cost of executing a transaction in a security in proportion to the weightage of its market capitalization as against the index market capitalization at any point of time. strategic stakes by corporate bodies.

2. new issue of shares etc.87 0.24 0.24 1. There is a three-tier governance structure comprising the Board of Directors of IISL. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits.03 10 years 399. Daily Return (%) 1 year -6. Base Date and Value The base period selected for S&P CNX Nifty index is the close of prices on November 3.03 5 years 22.89 1. The value of the index has been set at 1000 and a base capital of Rs. without affecting the index value.53 1.base market capitalization value. a company setup by NSE and CRISIL manages S&P CNX Nifty.28 -0. Index Performance Statistics: Period Returns (%) Volatility (%) Avg.66 0.08 Since Inception 427.02 3 years 23.68 0.06 trillion. the Index Policy Committee.05 1.05 * As on June 29. Index Governance A professional team at IISL. rights. and the Index Maintenance Sub-Committee.02 1. 1995. 2012 0 1000 2000 . which marks the completion of one year of operations.

3000 4000 5000 6000 7000 Nov-95 May-96 Dec-96 Jul-97 Feb-98 Sep-98 Apr-99 Nov-99 Jun-00 Dec-00 Jul-01 Feb-02 Sep-02 Apr-03 Nov-03 Jun-04 Dec-04 Jul-05 Feb-06 Sep-06 .

Industry Mkt. Cap. Weight (%) 1 Banks 334035 20.26 3 Cigarettes 139944 8. * Rs.Software 218635 13. No.11 5 Finance . Cr.50 .4 Wheelers 90722 5.86 6 Automobiles .Housing 96551 5.Apr-07 Oct-07 May-08 Dec-08 Aug-09 Mar-10 Sep-10 Apr-11 Nov-11 Jun-12 Index Value Date Sector Break-up: Sr.49 4 Refineries 133739 8.26 2 Computers .

2012 Company Size (Rs. 2012 S&P CNX Nifty Constituents: Company Name .20 12 Diversified 46625 2.56 8 Pharmaceuticals 68266 4.) Largest 139944 Smallest 5308 Average 32974 As on June 29.21 16 Mining 29379 1.2 And 3 Wheelers 41619 2.87 Total 1648700 100.78 17 Electrical Equipment 24608 1.14 9 Oil Exploration/Production 61757 3.Services 36496 2.94 22 Aluminium 15422 0.83 13 Cement And Cement Products 41747 2.96 21 Construction 15541 0.02 20 Gas 15816 0.07 19 Financial Institution 16761 1. Cr.00 * Free Float Market Capitalization as on June 29.52 15 Telecommunication .7 Engineering 75248 4.75 10 Power 60955 3.53 14 Automobiles .94 23 Metals 14419 0.49 18 Paints 17609 1.70 11 Steel And Steel Products 52807 3.

60 Bharti Airtel Ltd.33 Bajaj Auto Ltd. 103679 6.25 Hero MotoCorp Ltd.06 Hindustan Unilever Ltd. Cap. Cr.34 ICICI Bank Ltd. 42794 2. 46625 2. 36496 2. 120980 7.95 State Bank of India 55657 3. 101805 6. 50402 3. 26322 1. 124126 7. 20511 1. 29431 1. 139944 8. 20639 1. 22048 1. * Rs.26 Wipro Ltd.53 Infosys Ltd. 20790 1. Weight (%) I T C Ltd.97 Tata Steel Ltd. 32453 1. 96551 5. 75248 4.38 Oil & Natural Gas Corporation Ltd.83 Tata Motors Ltd. 65058 3.49 Reliance Industries Ltd.45 Kotak Mahindra Bank Ltd.21 Mahindra & Mahindra Ltd. 21905 1.29 HDFC Bank Ltd.17 Housing Development Finance Corporation Ltd.28 Dr.60 Sun Pharmaceutical Industries Ltd.34 Coal India Ltd. 23890 1. 21108 1. Reddy's Laboratories Ltd.Mkt.24 .56 Tata Consultancy Services Ltd.86 Larsen & Toubro Ltd.79 Axis Bank Ltd.

15422 0.10 Asian Paints Ltd. 9613 0.65 Bharat Petroleum Corporation Ltd. 16075 0.45 DLF Ltd.58 Jaiprakash Associates Ltd.46 Ranbaxy Laboratories Ltd. 11833 0. 16761 1. 17609 1. 7523 0. 7557 0. 11355 0. 6244 0.03 Grasim Industries Ltd.50 Reliance Infrastructure Ltd.94Sterlite Industries (India) Ltd.80 HCL Technologies Ltd. 15816 0.87 Bank of Baroda 13767 0. 11958 0.24 Bharat Heavy Electricals Ltd. 8322 0. 16063 0.94 Hindalco Industries Ltd.NTPC Ltd.02 Power Grid Corporation of India Ltd. 7219 0. 13150 0. 18068 1.11 Jindal Steel & Power Ltd.97 GAIL (India) Ltd.84 Ambuja Cements Ltd. 20379 1.73 ACC Ltd. 7474 0.46 Sesa Goa Ltd.69 Punjab National Bank 10755 0. Ltd.02 Infrastructure Development Finance Co.98 Cipla Ltd. 16764 1. 18365 1.44 Siemens Ltd.96 Maruti Suzuki India Ltd.38 . 16943 1. 15475 0. Ltd. 14419 0.07 Tata Power Co.72 Cairn India Ltd.

00 * Free Float Market Capitalization as on June 29.32 Total 1648700 100.Steel Authority of India Ltd. 5308 0. 2012 .