Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately.

As a fast-growing economy, India has become one of the largest energy intensive countries in the World. Energy is a crucial input for India's development process. The need of the hour, therefore, is to meet the energy needs of all segments of India's population in the most efficient and cost-effective manner while ensuring long-term sustainability. IISL has developed CNX Energy Index to capture the performance of the companies in this sector.

Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors.

Methodology

Effective October, 11, 2010, CNX Energy Index is computed using free float market capitalization weighted method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. The CNX Energy Index has a base date of Jan 1, 2001 and a base value of 1000.

Market Representation

• The CNX Energy Index represents about 11.68% of the free float market capitalization of the stocks listed on NSE and 82.27% of the free float market capitalization of the stocks forming part of the Energy sector universe as on December 30, 2011.
  
  

• The total traded value for the last six months of all Index constituents is approximately 7.09% of the traded value of all stocks on NSE and 71.08% of the traded value of the stocks forming part of the Energy sector universe.
   

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 one year
   
   
4. Company should have a minimum track record of 3 years of operations with a positive networth.
   
   
5. 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.

*CNX Energy Index was computed using market capitalization weighted method from the launch date till October 08, 2010.

List of CNX Energy Index Stocks