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Tel: +91 22 26598386
Fax: +91 22 26598120
Index
Methodology
Nifty IT
The Nifty IT index provides investors and market intermediaries
with an appropriate benchmark that captures the performance of
the
Indian IT companies. The Nifty IT Index comprises of 10
companies listed on the National Stock Exchange (NSE).
The Nifty 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. Effective
May
29, 2015, the index is computed with 10 companies and weights of
each company in the index are capped at 25%.
Nifty IT Index can be used for a variety of purposes such as
benchmarking fund portfolios, launching of index funds, ETFs
and
structured products.
Eligibility Criteria for Selection of
Constituent Stocks
Index Re-Balancing:
Index is re-balanced on semi–annual
basis. The cut-off date is January 31 and
July 31 of each year, i.e. For semi-
annual review of indices, average data
for six months ending the cut-off date is
considered. Four weeks prior notice is
given to market from the date of change.
Index Govenance:A professional team at IISL manages
Nifty IT Index. There is a three-tier
governance structure comprising the
Board of Directors of IISL, the Index
Policy Committee, and the Index
Maintenance Sub-Committee.
Companies must rank within the top 500
companies ranked by average free-float
market capitalisation and aggregate turnover
for the last six months.
Companies should form a part of the IT
sector.
The company’s trading frequency should be
at least 90% in the last six months.
The company should have reported apositive net worth.
The company should have an investable
weight factor (IWF) of at least 10%.
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.
Final selection of 10 companies shall be
done based on the free-float market
capitalization of the companies.
Bloomberg:
Thomson Reuters:
CNXIT Index
.CNXIT
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Nifty ITDecember 31, 2015
Statistics
Returns (%)
QTD YTD 1 Year 5 YearsSince
Inception
1 Year 5 YearsSince
Inception
-5.52 -0.03 -0.03 8.40 26.60
1 Year Performance Comparison of Sector Indices
Top 10 constituents by weightage
Company’s NameWeight
(%)
Infosys Ltd. 25.90
Tata Consultancy Services Ltd. 25.75
HCL Technologies Ltd. 16.02
Wipro Ltd. 12.14
Tech Mahindra Ltd. 10.77
Oracle Financial Services Software Ltd. 2.73
MindTree Ltd. 2.69
Info Edge (India) Ltd. 1.96
Cyient Ltd. 1.14
Justdial Ltd. 0.90
Methodology
No. of Constituents
Launch Date
Base Date
Base Value
Calculation Frequency
Index Rebalancing
Periodic Capped Free Float
10
January 01, 1996
100
Real-time Daily
Semi-Annually
Std. Deviation *
Beta (Nifty 50)
Correlation (Nifty 50)
17.33
0.67
0.62
21.54
0.68
0.53
37.47
1.00
0.67
Portfolio Characteristics
Fundamentals
P/E P/B Dividend Yield
19.51 5.94 2.6
#
Disclaimer: All information contained herewith is provided for
reference purpose only. IISL ensures accuracy and reliability of
the above information to the best of its endeavors. However,
IISL
makes no warranty or representation as to the accuracy,
completeness or reliability of any of the information contained
herein and disclaim any and all liability whatsoever to any person
for any
damage or loss of any nature arising from or as a result of
reliance on any of the information provided herein. The information
contained in this document is not intended to provide
anyprofessional advice.
# QTD,YTD and 1 year returns are absolute returns.Returns for
greater than one year are CAGR returns.
* Average daily standard deviation annualised
