Pharmaceuticals sector is one of the key sectors where Indian companies have created a global brand for themselves besides software. Indian companies have taken advantage of the opportunities in the regulated generics market in the western countries and made deep inroads especially in providing low cost equivalents of expensive drugs. Pharma outsourcing into India and low cost Healthcare services are expected to be the key areas of growth in the near future. In addition, the inherent potential of biotechnology has also attracted many new companies and this is also a key growth area for Indian companies. IISL has developed CNX Pharma Index to capture the performance of the companies in this sector.

The CNX Pharma Index represents about 74.20% and 82.86 % of the market capitalization and aggregate turnover of the last six months for the period March 31, 2009 of the Pharmaceuticals Sector Universe respectively.

The total traded value for the last six months of all CNX Pharma Index constituents is approximately 1.96% of the traded value of all stocks on the NSE. CNX Pharma Index constituents represent about 3.03% 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 eligiblity criteria for the index for a 3 month period instead of a 6 month period.

List of CNX Pharma Index Stocks