MCX SX 40

We introduce here an index by the name of SX40 which has been projected as Index of India by MCX. They in their advertorial states that SX40 is the flagship Index of MCX-SX. It is a free float based index of 40 large cap - liquid stocks representing diversified 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 Classification system from FTSE. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc.

Imp Facts

• Index Universe: Large Cap companies
• No. of Companies: 40
• Base Date: March 31, 2010
• Base Value:10,000
• Currency: Indian Rupee
• Index Basket Recasting: Semi-annually
• Minor Share Issuance adjustment: Monthly
• Methodology: Free float weighted market capitalisation

Verdict

We are presenting in the side screenshot the selection criterion of the companies for this index. However it will have to go a long way before it can give any kind of competition to Nifty and Sensex. MCX has started with a media blitzkreig and their advertisement for their index is as appended below. We hope to see more users benefitting with our Jackpot Tip and make money like professionals.