The Indian Economy has seen structural changes in the last couple of years. According to RBI data, the services sector remained the principal driver of the Indian economy, contributing 55 per cent of the growth of real GDP in 2006-07. The key driver for the growth of the service sector has been industries like IT, Banks, Tourism, Telecommunication etc. Going forward, the service sector will grow manifold mainly on account of the India’s low cost advantage, increasing demand for Customer services and the booming knowledge economy. To capture the performance of the companies belonging to this sector, IISL has developed CNX Service Sector Index to capture the performance of the companies in this sector.

The CNX Service Sector Index is 30 stocks index and includes companies belonging to services sector like Computers – Software, IT Education and Training, Banks, Telecommunication –services, Financial Institutions, Power, Media, Courier, Shipping etc.


Methodology

The CNX Service Sector Index is computed using free float market capitalization weighted method with a base date of May 1999 and base value of 1000 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

Market Representation

1. The CNX Service Sector Index represents about 35.37% of the free float market capitalization of the stocks listed on NSE and 89.51% of the free float market capitalization of the stocks forming part of the Service sector universe as on December 30, 2011.
   
   

2. The total traded value for the last six months of all index constituents is approximately 30.69% of the traded value of all stocks on NSE and 81.56% of the traded value of the stocks forming part of the Service 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 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 eligiblity criteria for the index for a 3 month period instead of a 6 month period.

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

List of CNX Service Sector Index Stocks