7/27/2019 SX40 Leaflet
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Superior return & risk adjusted return
A unique Index of India
benchmarking global best practices
of index designing
Better Reection 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 port-
folio management (MFs, ETFs etc)
SX40 is the agship Index of MCX-SX. A free oat based index of
40
large cap - liquid stocks representing diversied 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 Classication system from FTSE. The Index is
devised tooffer cost-effective 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
efficient investment and risk management instrument. It would
also
help in structuring passive investment vehicles.
Investability
Free-oat weighted to bolster efficient investability.
Transparency
Index rules are overseen by an independent index committee
comprising of leading investment industry professionals,
academicians,
and nancial experts. The Committee also monitors constituent
liquidity to ensure efficient 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.
About
INDEX OF INDIA
Key Features
Underlying stocks must have a
positive net-worth
The stock must have free oat of at least
10% & within top 100 liquid companies
Industry capping at 20% ()2% band
Fast Entry for companies with betterfree oat market cap and
liquidity
Top 40 companies meeting above
criteria constitute SX40
Selection Criteria
7/27/2019 SX40 Leaflet
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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.
Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093
Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004
Email: [email protected]
Performance
INDEX OF INDIA
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 tness 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 reect 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.
Index Returns (%) SX40 Nifty Sensex
FY 2010-11 11.7 11.1 10.9
FY 2011-12 -8.8 -9.2 -10.5
FY 2012-13* 14.2 14.0 14.3
2010 2013* 16.3 15.0 13.5
Industry Weights (%)*
SX 40 Nifty SensexBasic Materials 4.7 4.6 5.9
Consumer Goods 18.2 14.7 17.2
Consumer Services 0.7 0.0 0.0
Financials 22.0 29.4 26.4
Health Care 5.1 4.9 4.5
Industrials 14.8 15.5 12.0
Oil & Gas 14.8 13.1 14.7
Technology 14.2 12.7 14.2
Telecommunications 2.4 2.1 2.7
Utilities 3.1 3.1 2.5
Index Characteristics (%) SX40 Nifty Sensex
Weight of the largest
constituent* 9.4 8.8 10.3
Top 10 Holding* 62.4 57.4 67.8
Constituents
*As on January 31, 2013
Parameters
Minimum Free Float
Liquidity
Review
Minor Share Issu-
ance adjustment
Free Float Change
Industry Cap
Industry
Classication
SX-40
10%
Within Top 100
Semi-Annually
Monthly
20%
ICB
NSE
10%
Impact cost
Semi-Annually
Monthly
No
Internal
International Practices
FTSE-25%, CAC 20%, S&P 500- 50%
NIKKEI: Turnover as Liquidity
Quarterly, Half yearly, Annual, Need Based
DAX, FTSE: QTRLY, 10% and above
changed else annual, Nasdaq, S&P 500
Qtrly if less than 5%
TSX &various variants of other Indices
STOXX/ FTSE, NASDAQ, NYSE, LSE,
Kuwait SE, SGX, Taiwan SX
International Practices
Index Universe:Large Cap companies
No. of Companies: 40
Index Launch:
February 11, 2013
Base Date:
March 31, 2010
Base Value:10,000
Currency: Indian Rupee
Index Basket Recasting:
Semi-Annually
Minor Share Issuance
adjustment: Monthly
85
90
95
100
105
110
115
120
125
Apr10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12
Dec-12
SX40 NIFTY SENSEX
Quick Facts
