Information Technology (IT) industry has played a major role in the Indian economy during the last few years. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the performance of the IT segment of the market.

Companies in this index are those that have more than 50% of their turnover from IT related activities like software development, hardware manufacture, vending, support and maintenance.

The average total traded value for the last six months of CNX IT Index stocks is approximately 91% of the traded value of the IT sector. CNX IT Index stocks represent about 96% of the total market capitalization of the IT sector as on March 31, 2005.

The average total traded value for the last six months of all CNX IT Index constituents is approximately 14% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about 14% of the total market capitalization as on March 31, 2005.

Methodology

The index is a market capitalisation weighted index with its base period being December 1995 and the base date and base value being January 1, 1996 and 1,000 respectively.

The Base Value of the index is being revised from 1000 to 100 w.e.f. 28 May 2004.


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 six months



4. Company should have a positive networth.



5. A company which comes out with a 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.

List of CNX IT Index Stocks

CNX IT Futures

CNX IT Options

Details of past changes to CNX IT Index