The medium capitalised segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the CNX Midcap Index is to capture the movement and be a benchmark of the midcap segment of the market.
 

Market Representation

• The CNX Midcap Index represents about 12.01% of the free float market capitalization of the stocks listed on NSE as on December 30, 2011.





• The total traded value for the last six months of all Index constituents is approximately 14.47% of the traded value of all stocks on NSE.

Method of Computation

CNX Midcap is computed using free float market capitalization* weighted method w.e.f. February 26, 2010, wherein the level of the index reflects the 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.

Base Date and Value

The CNX Midcap Index has a base date of Jan 1, 2003 and a base value of 1000

Criteria for Selection of Constituent Stocks

The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is based on the following criteria :

• All the stocks, which constitute more than 5% market capitalization of the universe (after sorting the securities in descending order of market capitalization), shall be excluded in order to reduce the skewness in the weightages of the stocks in the universe.



• After step (a), the weightages of the remaining stocks in the universe is determined again.



• After step (b), the cumulative weightage is calculated.



• After step (c) companies which form part of the cumulative percentage in ascending order unto first 75 percent (i.e. upto to 74.99 percent) of the revised universe shall be ignored.



• After, step (d), all the constituents of S&P CNX Nifty shall be ignored.



• From the universe of companies remaining after step (e) i.e. 75th percent and above, first 100 companies in terms of highest market capitalization, shall constitute the CNX Midcap Index subject to fulfillment of the criteria mentioned below.

Trading Interest

All constituents of the CNX Midcap Index must have a minimum listing record of 6 months. In addition, all candidates for the Index are also evaluated for trading interest, in terms of volumes and trading frequency.

Financial Performance

All companies in the CNX Midcap Index have a minimum track record of three years of operations with a positive net worth.

Others

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.

*CNX Midcap Index was computed using market capitalization weighted method from the launch date till February 25, 2010.

List of CNX Midcap stocks  | Daily Values