The CNX Finance Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions and housing finance and other financial services companies. The CNX Finance Index comprises of 15 stocks that are listed on the National Stock Exchange (NSE).

Methodology

The CNX Finance Index is computed using free float market capitalization method with a base date of January 1, 2004 indexed to a 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 Finance Index represents about 17.69% of the free float market capitalization of the stocks listed on NSE and 76.47% of the free float market capitalization of the stocks forming part of the Finance sector universe as on December 30, 2011.
   

• The total traded value for the last six months of all index constituents is approximately 18.89% of the traded value of all stocks on NSE and 78.56% of the traded value of the stocks forming part of the Finance sector universe.

Selection Criteria

The criteria for the CNX Finance Index include the following:

1. Companies must rank within the top 500 companies by average free-float market capitalization and aggregate turnover for the last six months.
   
   

2. The company's trading frequency should be at least 90% in the last six months.
   
   
3. The company should have reported a positive net worth.
   
   

4. The company should have an investable weight factor (IWF) of at least 10%.
   
   

5. The company should have a listing history of 6 months. A company, which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
   
   

6. Final selection of 15 companies shall be done based on the free float market capitalization of the companies.
    
7. The review will take place on a semi-annual basis.
   
   
   

Index Constituents | Daily Values | Factsheet