Information Technology (IT) industry has played a major role in the Indian economy during the last few years. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the performance of the IT segment of the market.

Companies in this index are those that have more than 50% of their turnover from IT related activities like IT Infrastructure , IT Education and Software Training , Telecommunication Services and Networking Infrastructure, Software Development, Hardware Manufacturer’s, Vending, Support and Maintenance

Methodology

The CNX IT index is computed using free float market capitalization method with a base date of Jan 1, 1996 indexed to a base value of 1000 wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, new issue of shares etc. without affecting the index value.

Market Representation

• The CNX IT Index represents about 11.47% of the free float market capitalization of the stocks listed on NSE and 93.99% of the free float market capitalization of the stocks forming part of the IT sector as on December 30, 2011.
   

• The total traded value for the last six months of all the CNX IT Index constituents is approximately 8.03% of the traded value of all stocks on the NSE and 91.02% of the traded value of the stocks forming part of the IT sector.

Selection Criteria

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

2. The company's trading frequency should be at least 90% in the last 6 months.
   
   
3. The company should have reported a positive net worth.
   
   
4. 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.
    
5. Final selection of 20 companies shall be done based on the free-float market capitalization of the companies.
    
6. The review will take place on a semi-annual basis.
   
   
   
   

List of CNX IT Index Stocks  | Daily Values

CNX IT Futures

CNX IT Options

Details of past changes to CNX IT Index