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NATIONAL STOCK EXCHANGE OF INDIA LIMITED

DEPARTMENT : CAPITAL MARKET SEGMENT

Download Ref No :NSE/CMTR/19982 Date : February 09, 2012

Circular Ref. No : 011/ 2012

All NSE Members

Sub: Dissemination of Index on trading system in Capital Market Segment

The Exchange proposes to incorporate following indices on trading system for its on-line

dissemination in multiple index broadcast screen under the names as given below:

Sr No Index Name Name on trading system

1 CNX Commodities Index CNX Commodities

2 CNX Consumption Index CNX Consumption

3 CNX Finance index CNX Finance

The details and factsheet of these indices are given in the following annexures:-

Annexure 1 – CNX Commodities Index

Annexure 2 – CNX Consumption Index

Annexure 3 – CNX Finance Index

Further, the Exchange shall provide details of these indices in end of day press files and market

activity report available on Exchange website and extranet.

The date of implementation of proposed changes will be intimated separately.

For and on behalf of

National Stock Exchange of India Limited

Suprabhat Lala

Vice President- CM Trade

Telephone No Fax No Email id

022-26598153/56/57 022-26598155 cmops@nse.co.in

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ANNEXURE – 1

CNX Commodities Index

Base Date and Value

The CNX Commodities Index has a base date of January 1, 2004 and indexed to a base value of

1000.

Constituents of CNX Commodities Index as on January 31, 2012

Sr. No. Company Name Symbol Series

1 ACC Ltd. ACC EQ

2 Adani Power Ltd. ADANIPOWER EQ

3 Ambuja Cements Ltd. AMBUJACEM EQ

4 Bharat Petroleum Corporation Ltd. BPCL EQ

5 Cairn India Ltd. CAIRN EQ

6 Coal India Ltd. COALINDIA EQ

7 Grasim Industries Ltd. GRASIM EQ

8 Hindalco Industries Ltd. HINDALCO EQ

9 Hindustan Petroleum Corporation Ltd. HINDPETRO EQ

10 JSW Energy Ltd. JSWENERGY EQ

11 JSW Steel Ltd. JSWSTEEL EQ

12 Jindal Steel & Power Ltd. JINDALSTEL EQ

13 NHPC Ltd. NHPC EQ

14 NTPC Ltd. NTPC EQ

15 National Aluminium Co. Ltd. NATIONALUM EQ

16 Oil & Natural Gas Corporation Ltd. ONGC EQ

17 Oil India Ltd. OIL EQ

18 Reliance Industries Ltd. RELIANCE EQ

19 Reliance Infrastructure Ltd. RELINFRA EQ

20 Reliance Power Ltd. RPOWER EQ

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21 Sesa Goa Ltd. SESAGOA EQ

22 Shree Renuka Sugars Ltd. RENUKA EQ

23 Steel Authority of India Ltd. SAIL EQ

24 Sterlite Industries (India) Ltd. STER EQ

25 Tata Chemicals Ltd. TATACHEM EQ

26 Tata Power Co. Ltd. TATAPOWER EQ

27 Tata Steel Ltd. TATASTEEL EQ

28 Torrent Power Ltd. TORNTPOWER EQ

29 UltraTech Cement Ltd. ULTRACEMCO EQ

30 United Phosphorus Ltd. UNIPHOS EQ

FACTSHEET

The CNX Commodities Index is designed to reflect the behaviour and performance of a

diversified portfolio of companies representing the commodities segment which includes sectors

like Oil, Petroleum Products, Cement, Power, Chemical, Sugar, Metals and Mining. The CNX

Commodities Index comprises of 30 companies that are listed on the National Stock Exchange

(NSE).

Methodology:

The index is calculated using free float market capitalization methodology with a base date of

January 1, 2004 indexed to a 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 the particular base market

capitalization value. The index is capped at stock level of 10% i.e. no individual stock should

have a weightage of more than 10% in the index at any given point of time.

Market Representation:

The CNX Commodities Index represents about 18.83% of the free float market

capitalization of the stocks listed on NSE and 85.91 % of the free float market

capitalization of the stocks forming part of the Commodities segment universe as on Dec.

30, 2011.

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The traded value for the last six months of all index constituents is approximately 17.20%

of the traded value of all stocks on NSE and 83.83 % of the traded value of the stocks

forming part of the Commodities segment universe.

Selection Criteria:

The criteria for the CNX Commodities Index include the following:

1. Companies must rank within the top 500 companies ranked by average free-float market

capitalisation and aggregate turnover for the last six months.

2. Company should form part of Commodities sector.

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 fulfils 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 take place on a semi-annual basis.

Index Performance:

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Statistics:

Period

Returns

(%)

Volatility

(%)

Avg. Daily

Return (%)

1 year -34.12 1.23 -0.12

3 years 39.92 1.93 0.04

5 years 24.39 2.01 0.05

Since

Inception 111.38 1.95 0.06

* As on Dec. 30, 2011

Company Size (Rs. Cr.):

Largest 30461

Smallest 990

Average 10154

Median 6273

* Capped Free Float Market Capitalization as on Dec. 30, 2011

Top 10 Constituents

Sr.

No. Company Name

Mkt. Cap.*

Rs. Cr.

Weight

(%)

1 Reliance Industries Ltd. 30461 10.00

2

Oil & Natural Gas Corporation

Ltd. 30461 10.00

3 Tata Steel Ltd. 22287 7.32

4 NTPC Ltd. 20558 6.75

5 Coal India Ltd. 18990 6.23

6 Jindal Steel & Power Ltd. 17532 5.76

7 Grasim Industries Ltd. 15797 5.19

8 Hindalco Industries Ltd. 14900 4.89

9 Tata Power Co. Ltd. 14120 4.64

10 Sterlite Industries (India) Ltd. 12593 4.13

* Capped Free Float Market Capitalization as on Dec. 30, 2011

Sector Break-up:

Sr.

No. Sector

Mkt. Cap.*

Rs. Cr.

Weight

(%)

1 ALUMINIUM 16440 5.40

2

CEMENT AND CEMENT

PRODUCTS 49493 16.25

3 CHEMICALS - INORGANIC 5488 1.80

4 METALS 12593 4.13

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5 MINING 25363 8.33

6

OIL

EXPLORATION/PRODUCTION 45531 14.95

7

PESTICIDES AND

AGROCHEMICALS 4304 1.41

8 POWER 53615 17.60

9 REFINERIES 40822 13.40

10 STEEL AND STEEL PRODUCTS 49969 16.40

11 SUGAR 990 0.32

Total 304610 100.00

* Capped Free Float Market Capitalization as on Dec. 30, 2011

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ANNEXURE – 2

CNX Consumption Index

Base Date and Value

The CNX Consumption Index has a base date of January 2, 2006 and indexed to a base value of

1000.

Constituents of CNX Consumption Index as on January 31, 2012

Sr. No. Company Name Symbol Series

1 Apollo Hospitals Enterprises Ltd. APOLLOHOSP EQ

2 Asian Paints Ltd. ASIANPAINT EQ

3 Bajaj Auto Ltd. BAJAJ-AUTO EQ

4 Bharti Airtel Ltd. BHARTIARTL EQ

5 Colgate Palmolive (India) Ltd. COLPAL EQ

6 Dabur India Ltd. DABUR EQ

7 GlaxoSmithkline Consumer Healthcare Ltd. GSKCONS EQ

8 Glaxosmithkline Pharmaceuticals Ltd. GLAXO EQ

9 Glenmark Pharmaceuticals Ltd. GLENMARK EQ

10 Godrej Consumer Products Ltd. GODREJCP EQ

11 Hero Motocorp Ltd. HEROMOTOCO EQ

12 Hindustan Unilever Ltd. HINDUNILVR EQ

13 I T C Ltd. ITC EQ

14 Idea Cellular Ltd. IDEA EQ

15 Indian Hotels Co. Ltd. INDHOTEL EQ

16 Mahindra & Mahindra Ltd. M&M EQ

17 Marico Ltd. MARICO EQ

18 Maruti Suzuki India Ltd. MARUTI EQ

19 Pantaloon Retail (India) Ltd. PANTALOONR EQ

20 Piramal Healthcare Ltd. PIRHEALTH EQ

21 Reliance Communications Ltd. RCOM EQ

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22 Reliance Infrastructure Ltd. RELINFRA EQ

23 Shree Renuka Sugars Ltd. RENUKA EQ

24 Sun Pharmaceutical Industries Ltd. SUNPHARMA EQ

25 Sun TV Network Ltd. SUNTV EQ

26 Tata Global Beverages Ltd. TATAGLOBAL EQ

27 Tata Power Co. Ltd. TATAPOWER EQ

28 Torrent Power Ltd. TORNTPOWER EQ

29 United Spirits Ltd. MCDOWELL-N EQ

30 Zee Entertainment Enterprises Ltd. ZEEL EQ

FACTSHEET

The CNX Consumption Index is designed to reflect the behaviour 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 (NSE).

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. The index is capped at stock level of 10% i.e. no

individual stock should have a weightage of more than 10% in the index at any given point of time.

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 companies forming part of the Consumption sector universe as on

December 30, 2011.

The traded value for the last six months of all CNX Consumption Index constituents is

approximately 13.51 % of the traded value of all stocks on NSE and 47.72 % of the traded

value of the companies forming part of the Consumption sector universe.

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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

capitalisation 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 Performance:

500.00

750.00

1000.00

1250.00

1500.00

1750.00

2000.00

2250.00

Jan-0

6

Mar

-06

May

-06

Jun-0

6

Au

g-0

6

Oct

-06

Dec

-06

Feb

-07

Apr-

07

Jun-0

7

Au

g-0

7

Oct

-07

Dec

-07

Feb

-08

Apr-

08

Jun-0

8

Aug

-08

Oct

-08

Dec

-08

Feb

-09

Apr-

09

Jun-0

9

Aug

-09

Oct

-09

Dec

-09

Feb

-10

Apr-

10

Jun-1

0

Aug

-10

Oct

-10

Dec

-10

Feb

-11

Ap

r-1

1

Jun-1

1

Aug

-11

Oct

-11

Dec

-11

Ind

ex V

alu

e

Date

Statistics:

Period Returns (%) Volatility

(%)

Avg. Daily

Return (%)

1 year -10.81 0.99 -0.04

3 years 63.59 1.27 0.07

5 years 27.70 1.60 0.03

Since Inception 70.96 1.61 0.05

*As on Dec. 30, 2011

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Company Size (Rs. Cr.):

Largest 30477

Smallest 990

Average 10072

Median 5748

*As on Dec. 30, 2011

Top 10 Constituents:

Sr.

No. Company Name

Mkt.

Cap.

Rs. Cr.

Weight

(%)

1 Bharti Airtel Ltd. 30186 10.00

2 I T C Ltd. 30186 10.00

3 Mahindra & Mahindra Ltd. 30186 10.00

4 Hindustan Unilever Ltd. 29747 9.85

5 Bajaj Auto Ltd. 21357 7.07

6 Sun Pharmaceutical Industries Ltd. 18699 6.19

7 Hero MotoCorp Ltd. 18180 6.02

8 Tata Power Co. Ltd. 14120 4.68

9 Maruti Suzuki India Ltd. 12148 4.02

10 Asian Paints Ltd. 11742 3.89

* Free Float Market Capitalization as on Dec. 30, 2011

Sector Break Up:

Industry Name Mkt. Cap.

Rs. Cr.

Weight

(%)

Consumer Non-Durables 106271 35.17

Auto 81738 27.05

Telecom - Services 41669 13.79

Pharmaceuticals 33737 11.16

Power 22087 7.31

Media & Entertainment 8926 2.95

Healthcare Services 3499 1.16

Hotels 2741 0.91

Retailing 1504 0.50

* Free Float Market Capitalization as on December 30, 2011

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Annexure - 3

CNX Finance Index

Base Date and Value

The CNX Finance Index has a base date of January 1, 2004 and indexed to a base value of 1000.

Constituents of CNX Finance Index as on January 31, 2012

Sr. No. Company Name Symbol Series

1 Axis Bank Ltd. AXISBANK EQ

2 Bajaj Finserv Ltd. BAJAJFINSV EQ

3 HDFC Bank Ltd. HDFCBANK EQ

4 Housing Development Finance Corporation Ltd. HDFC EQ

5 ICICI Bank Ltd. ICICIBANK EQ

6 Infrastructure Development Finance Co. Ltd. IDFC EQ

7 Kotak Mahindra Bank Ltd. KOTAKBANK EQ

8 LIC Housing Finance Ltd. LICHSGFIN EQ

9 Mahindra & Mahindra Financial Services Ltd. M&MFIN EQ

10 Power Finance Corporation Ltd. PFC EQ

11 Punjab National Bank PNB EQ

12 Reliance Capital Ltd. RELCAPITAL EQ

13 Rural Electrification Corporation Ltd. RECLTD EQ

14 Shriram Transport Finance Co. Ltd. SRTRANSFIN EQ

15 State Bank of India SBIN EQ

FACTSHEET

The CNX Finance Index is designed to reflect the behaviour and performance of the Indian

financial market which includes banks, financial institutions, housing finance and other financial

services companies. The CNX Finance Index comprises of 15 stocks that are listed on the National

Stock Exchange (NSE).

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Methodology:

The CNX Finance Index is computed using free float market capitalization method with a base

date of January 1, 2004 indexed to a 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 particular base market

capitalization value. The method also takes into account constituent changes in the index and

importantly corporate actions such as stock splits, right issue, new issue of shares etc. without

affecting the index value.

Market Representation:

The CNX Finance Index represents about 17.69% of the free float market capitalization of the

stocks listed on NSE and 76.47 % of the free float market capitalization of the stocks forming

part of the Finance segment universe as on December 30, 2011.

The traded value of all index constituents for the last six months (ending Dec 2011) is

approximately 18.89% of the traded value of all stocks on NSE and 78.56% of the traded value

of the stocks forming part of the Finance segment universe.

Selection Criteria:

The criteria for the CNX Finance Index include the following:

1. Companies must rank within the top 500 companies by average free-float market

capitalization and aggregate turnover for the last six months.

2. The company's trading frequency should be at least 90% in the last six months.

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

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

5. 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.

6. Final selection of 15 companies shall be done based on the free float market capitalization

of the companies.

7. The review will take place on a semi-annual basis.

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Index Performance:

Statistics:

Period Returns (%) Volatility (%)

Avg. Daily

Return

(%)

1 year -28.19 1.67 -0.13

3 years 71.66 1.98 0.08

5 years 42.81 2.39 0.03

Since Inception 236.77 2.19 0.06

* As on Dec. 30, 2011

Company Size (Rs. Cr.):

Largest 86601

Smallest 2356

Average 24783

Median 10389

* As on Dec. 30, 2011

Market Capitalization and Weightage:

Company Name

Mkt.

Cap.*

Rs. Cr.

Weight

(%)

Housing Development Finance Corporation Ltd. 86601 23.30

ICICI Bank Ltd. 78889 21.22

HDFC Bank Ltd. 76651 20.62

State Bank of India 41738 11.23

Axis Bank Ltd. 20928 5.63

Kotak Mahindra Bank Ltd. 15937 4.29

Infrastructure Development Finance Co. Ltd. 10832 2.91

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Punjab National Bank 10389 2.79

LIC Housing Finance Ltd. 6668 1.79

Shriram Transport Finance Co. Ltd. 5575 1.50

Rural Electrification Corporation Ltd. 5041 1.36

Power Finance Corporation Ltd. 4792 1.29

Mahindra & Mahindra Financial Services Ltd. 2703 0.73

Reliance Capital Ltd. 2647 0.71

Bajaj Finserv Ltd. 2356 0.63

Total 371749 100

* Free Float Market Capitalization as on Dec. 30, 2011