Method of Computation

S&P CNX 500 is computed using market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value.


Base Date and Value

The calendar year 1994 has been selected as the base year for S&P CNX 500. The base value of the index is set at 1000.


Criteria for Selection of Constituent Stocks

The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is based on the following criteria :

§ Market Capitalisation
§ Industry Representation
§ Trading Interest
§ Financial Performance

List of S&P CNX 500 Stocks


Market Capitalisation

A company’s rank on market capitalisation is an important consideration for its inclusion in the Index.


Industry Representation

S&P CNX 500 Equity Index reflects the market as closely as possible. In order to ensure that this is accomplished, industry weightages in the index mirror the industry weightages in the universe. Consequently, companies to be included in the index are selected from the industries which are under represented in the index.

S&P CNX 500 Equity Index currently contains 72 industries, including one category of diversified companies and one category of miscellaneous. The number of industries in the Index and the number of companies within each industry have been kept flexible, in order to ensure that the Index retains its objective of being an dynamic market indicator.


Trading Interest

S&P CNX 500 Equity Index includes those companies which have a minimum listing record of 6 months on the Exchange. In addition these companies must have demonstrated high turnover and trading frequency.


Financial Performance

S&P CNX 500 Equity Index includes companies that have minimum record of three years with a positive networth.

Others

A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfills the normal eligiblity criteria for the index for a 3 month period instead of a 6 month period.