The CNX Consumption Index is designed to reflect the behavior and performance of a diversified portfolio of companies representing the domestic consumption sector which includes sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc. The CNX Consumption Index comprises of 30 companies listed on the National Stock Exchange.

Methodology

The index is calculated using free float market capitalization methodology with a base date of January 2, 2006 indexed to a base value of 1000. At the time of rebalancing of shares/ change in index constituents/ change in investable weight factors (IWFs), the weightage of the index constituent (where applicable) is capped at 8%. Weightage of such stock may increase up to a maximum of 10% between the rebalancing periods.

Market Representation:

• The CNX Consumption Index represents about 19.26% of the free float market capitalization of the stocks listed on NSE and 62.07% of the free float market capitalization of the stocks forming part of the Consumption sector universe as on December 30, 2011.
   

• The total traded value for the last six months of all Index constituents is approximately 13.51% of the traded value of all stocks on NSE and 47.72% of the traded value of the stocks forming part of the Consumption sector universe.
   

Selection Criteria

The criteria for the CNX Consumption Index include the following:

1. Companies must rank within the top 500 companies ranked by average free-float market capitalization and aggregate turnover for the last six months.
   
   

2. More than 50% of the company’s revenue must come from domestic markets (other than export income).
   
   
3. The company’s trading frequency should be at least 90% in the last six months.
   
   

4. The company should have reported a positive net worth.
   
   

5. The company should have an investable weight factor (IWF) of at least 10%
   
   

6. 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.
    
7. Final selection of 30 companies shall be done based on the free-float market capitalization of the companies.
    
8. The review will be carried out on a semi-annual basis.
   
   

Index Constituents | Daily Values | Factsheet