Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately.

As a fast-growing economy, India has become one of the largest energy intensive countries in the World. Energy is a crucial input for India's development process. The need of the hour, therefore, is to meet the energy needs of all segments of India's population in the most efficient and cost-effective manner while ensuring long-term sustainability. IISL has developed CNX Energy Index to capture the performance of the companies in this sector.

Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors.

The CNX Energy Index represents about 87.37% and 80.55% of the market capitalization and turnover of the last six months for the period March 31, 2009 of the Energy Sector Universe respectively .

The total traded value for the last six months of all CNX Energy Index constituents is approximately 16.88% of the traded value of all stocks on the NSE. CNX Energy Index constituents represent about 27.35% of the total market capitalization as on March 31, 2009.


Methodology

The index is a market capitalization weighted index with base date of January 1, 2001, indexed to a base value of 1000.


Selection Criteria

Selection of the index set is based on the following criteria :

1. Company's market capitalisation rank in the universe should be less than 500



2. Company's turnover rank in the universe should be less than 500



3. Company's trading frequency should be at least 90% in the last one year



4. Company should have a minimum track record of 3 years of operations with a positive networth.



5. 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.

List of CNX Energy Index Stocks