INDEX OF INDIA

Key Features
About
SX40 is the flagship Index of MCX-SX. A free float based index of 40
large cap - liquid stocks representing diversified sectors of the economy.
SX40 is designed to measure the economic performance with better
representation of various industries and sectors based on ICB, leading
global Industry Classification system from FTSE. The Index is devised to
oer cost-eective support for investment and structured products
such as index futures and option, index portfolio, exchange traded
funds, Index funds, etc.

Objective
SX40 is designed to be a performance benchmark and to provide for
ecient investment and risk management instrument. It would also
help in structuring passive investment vehicles.
Investability
Free-float weighted to bolster ecient investability.
Transparency
Index rules are overseen by an independent index committee
comprising of leading investment industry professionals, academicians,
and financial experts. The Committee also monitors constituent
liquidity to ensure ecient portfolio trading while keeping index
turnover to a minimum. Complete details of these guidelines, including
the criteria for index additions and removals, policy statements, and
research papers are freely and transparently available in public domain.
These guidelines provide complete transparency and fairness.
Availability
Calculated and disseminated based on real time basis.

Superior return & risk adjusted return

A unique Index of India
benchmarking global best practices
of index designing
Better Reflection of the Organised
Sector in the Economy through
enhanced industry representation
using ICB of FTSE
Rule based, transparent & replicable
Industry capping eliminates industry
bias and enhances Index stability
Lower churning rate
Low cost for funds (MFs, ETFs)
construction and maintenance
Low tracking error for passive portfolio management (MFs, ETFs etc)

Selection Criteria
Underlying stocks must have a
positive net-worth
The stock must have free float of at least
10% & within top 100 liquid companies
Industry capping at 20% ()2% band
Fast Entry for companies with better
free float market cap and liquidity
Top 40 companies meeting above
criteria constitute SX40
www.mcx-sx.com

INDEX OF INDIA

Performance
125

Index Returns (%)

SX40

Nifty Sensex

FY 2010-11

11.7

11.1

10.9

115

FY 2011-12

-8.8

-9.2

-10.5

110

FY 2012-13*

14.2

14.0

14.3

2010 2013*

16.3

15.0

13.5

SX40

120

NIFTY

SENSEX

105
100
95
90
85
Apr10

Aug-10

Dec-10

Apr-11

Aug-11

Dec-11

Apr-12

Dec-12

Aug-12

Constituents

ACC Ltd.
Ambuja Cements Ltd.
Asian Paints Ltd.
Bajaj Auto Ltd.
Bharat Petroleum Corp Ltd.
Bharti Airtel Ltd.
BHEL
Cairn India Ltd.
Cipla Ltd.
Coal India Ltd.
Dr. Reddy's Laboratories
Gail (India) Ltd.
HCL Technologies Ltd.
HDFC Bank Ltd.
HDFC Ltd.
Hero Motocorp Ltd.
Hindalco Industries Ltd.
Hindustan Unilever Ltd.
ICICI Bank Ltd.
Infosys Ltd.
ITC Ltd.
Jaiprakash Associates Ltd.
Jindal Steel & Power Ltd.
Larsen & Toubro Ltd.
Lupin Ltd.
Mahindra & Mahindra Ltd.
Maruti Suzuki India Ltd.
Ntpc Ltd.
Oil and Natural Gas Corp.
Power Grid Corp. Ltd.
Reliance Industries Ltd.
Sun Pharmaceuticals Ind.
Tata Consultancy Serv Ltd.
Tata Motors Ltd.
Tata Power Co Ltd.
Tata Steel Ltd.
Titan Industries Ltd.
United Spirits Ltd.
Wipro Ltd.
Zee Entertainment Ltd.

Quick Facts

Industry Weights (%)*

Basic Materials
Consumer Goods
Consumer Services
Financials
Health Care
Industrials
Oil & Gas
Technology
Telecommunications
Utilities

SX 40
4.7
18.2
0.7
22.0
5.1
14.8
14.8
14.2
2.4
3.1

Nifty
4.6
14.7
0.0
29.4
4.9
15.5
13.1
12.7
2.1
3.1

Sensex
5.9
17.2
0.0
26.4
4.5
12.0
14.7
14.2
2.7
2.5

Index Universe:
Large Cap companies

Index Characteristics (%)

SX40

Nifty

Sensex

Weight of the largest

constituent*

Index Basket Recasting:

Semi-Annually

9.4

8.8

10.3

Top 10 Holding*

62.4

57.4

67.8

Minor Share Issuance

adjustment: Monthly

No. of Companies: 40
Index Launch:
February 11, 2013
Base Date:
March 31, 2010
Base Value:10,000
Currency: Indian Rupee

International Practices
Parameters
Minimum Free Float

SX-40
10%

International Practices

NSE

FTSE-25%, CAC 20%, S&P 500- 50%

10%

Liquidity

Within Top 100 NIKKEI: Turnover as Liquidity

Review

Semi-Annually Quarterly, Half yearly, Annual, Need Based Semi-Annually

Minor Share Issuance adjustment

Free Float Change

Monthly

DAX, FTSE: QTRLY, 10% and above

changed else annual, Nasdaq, S&P 500
Qtrly if less than 5%

Industry Cap

20%

TSX &various variants of other Indices

Industry
Classification

ICB

STOXX/ FTSE, NASDAQ, NYSE, LSE,

Kuwait SE, SGX, Taiwan SX

Impact cost
Monthly

No
Internal

*As on January 31, 2013

Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093

Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004
Email: index@mcx-sx.com

Disclaimer: All the information in the brochure, including, but not limited to, characters, data, charts and tables (hereinafter referred to as information) are properties of MCX-SX Stock Exchange Ltd. (hereinafter referred to as MCX-SX) except
brands names and logos if any belonging to other persons. The contents of this documentare solely for informationalpurposes. It is not intended to be used as trading advice by anybody and should not in any way be treated as a
recommendation to trade. While the information in the document has been compiled from sources believed to be reliable and in good faith, recipients and audience of this document may note that the contents thereof including text,
graphics, links or other items are provided without warranties of any kind. MCX Stock Exchange Ltd.(MCX-SX) expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or fitness for any particular
purpose and shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data contained in this document.The charts and graphs may reflect hypothetical historical
performance. All information presented prior to the index inception date is back-tested. Back-tested performance is not actual performance, but is hypothetical. SX-40 and the SX40 logo are proprietary trademarks of MCX-SX.