SX40 is the flagship Index of MCX-SX. 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 following globally acknowledged Industry Classification Benchmark (ICB).
SX40 is designed to be a performance benchmark and to provide for efficient investment and risk management instrument. It would also help in structuring passive investment vehicles.
SX40 Selection Criteria
- Underlying stocks must belong to an Indian company traded on the exchange
- The stock must have free float of at least 10%.
- The stock must have a positive net-worth
- Stock must be within top 100 liquid companies
- After filtering from top 100 liquidity ranking, stock must be among top 50 in terms of Average free float market capitalization.
- Fast Entry for companies with better free float and liquidity
- Industry capping – at 20% (+/-) 2% band