The Indian Economy has seen structural changes in the last couple of years. According to RBI data, the services sector remained the principal driver of the Indian economy, contributing 55 per cent of the growth of real GDP in 2006-07. The key driver for the growth of the service sector has been industries like IT, Banks, Tourism, Telecommunication etc. Going forward, the service sector will grow manifold mainly on account of the India’s low cost advantage, increasing demand for Customer services and the booming knowledge economy. To capture the performance of the companies belonging to this sector, IISL has developed CNX Service Sector Index to capture the performance of the companies in this sector.

The CNX Service Sector Index is 30 stocks index and includes companies belonging to services sector like Computers – Software, IT Education and Training, Banks, Telecommunication –services, Financial Institutions, Power, Media, Courier, Shipping etc.


Methodology

The CNX Service Sector Index is calculated using the market capitalization weighted aggregate method. The base period is the month of May 1999, index to a value 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 six months



4. Company should have a positive networth.



5. 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.

List of CNX Service Sector Index Stocks