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CNX Nifty Junior Index by linzhengnd

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									The CNX Nifty Junior Index comprises of the next rung of liquid securities after those forming part
of S&P CNX Nifty. It may be useful to think of the S&P CNX Nifty and the CNX Nifty Junior as
making up the 100 most liquid stocks in India. As with the S&P CNX Nifty, stocks in the CNX Nifty
Junior are filtered for liquidity. The maintenance of the S&P CNX Nifty and the CNX Nifty Junior are
synchronized so that the two indices will always be disjoint sets; i.e. stock will never appear in both
indices at the same time. Hence it is always meaningful to pool the S&P CNX Nifty and the CNX
Nifty Junior into a composite 100 stock index or portfolio.



 Methodology:

CNX Nifty Junior is computed using free float market capitalization method, wherein the level of the
index reflects total free float market value of all the stocks in the index relative to a particular base
market capitalization value. The method also takes into account constituent changes in the index
and importantly corporate actions such as stock splits, rights, new issue of shares etc. without
affecting the index value. CNX Nifty Junior was introduced on January 1, 1997, with base date and
base value being November 04, 1996 and 1000 respectively and a base capital of Rs.0.43 trillion.


 Market Representation:

        The CNX Nifty Junior Index represents about 12.62% of the free float market
        capitalization of the stocks listed on NSE as on Sept. 30, 2011.
        The traded value for the last six months of all CNX Nifty Junior constituents is
        approximately 14.37% of the traded value of all stocks listed on NSE.


 Selection Criteria:

The constituents and the criteria for the selection judge the effectiveness of the index. Selection of
the index set is based on 4 criteria:



    Liquidity (Impact Cost)

    Market Capitalization

    Floating Stock

    Other
    Liquidity (Impact Cost)
For inclusion in the index, the security should have traded at an average impact cost of 0.5% or
less during the last 6 months for 90% of the observations for a basket size of Rs.50 lakhs (Rs.5
million). This is the percentage mark up suffered while buying / selling the desired quantity of a
security compared to its ideal price (best buy + best sell) / 2.



    Floating Stock
The companies eligible for inclusion in the CNX Nifty Junior should have free float of at least
10%. Free float factor (Investible Weight Factor–IWF) for each company in the index will be
determined based on the public shareholding of the companies as disclosed in the shareholding
pattern submitted to the stock exchanges by these companies on a quarterly basis. Promoters’
holding, government holding in case of public sector undertaking, shares held by promoters
through ADRs/ GDRs, associate companies, employee welfare trusts, strategic stakes by
corporate bodies, investments under Foreign Direct Investment (FDI) category (where
identifiable) and public lock-ins are subtracted to arrive at Free Float factor.

    Others
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 like impact cost, market capitalization and floating stock, for a
3 month period.


 Base Date and Value
CNX Nifty Junior was introduced on January 1, 1997, with base date and base value being
November 04, 1996 and 1000 respectively and a base capital of Rs.0.43 trillion.
 Index Performance:




 Statistics:

                                                    Avg. Daily
Period             Returns (%)     Volatility (%)
                                                    Return (%)
1 year                    -21.95            1.21            -0.09
3 years                    62.53            1.87             0.08
5 years                    50.87            2.02             0.05
Since Inception           882.22            1.95             0.08
       *As on Sept. 30, 2011


 Company Size (Rs. Cr.)

Largest                    21046
Smallest                     691
Average                     5892
Median                      5589
      *As on Sept. 30, 2011
 Sector Break-up

 Sr.                                                  Mkt. Cap.*    Weight
 No.                   Industry Name                  in Rs. Cr.     (%)
    1     Banks                                             62988    21.38
    2     Pharmaceuticals                                   26820     9.10
    3     Mining                                            21046     7.14
    4     Paints                                            14342     4.87
    5     Financial Institution                             12979     4.41
    6     Trading                                           12564     4.27
    7     Cement And Cement Products                        11153     3.79
    8     Gems, Jewellery And Watches                        8661     2.94
    9     Computers - Software                               8443     2.87
   10     Finance                                            8133     2.76
   11     Shipping                                           7410     2.52
   12     Brew/Distilleries                                  7018     2.38
   13     Construction                                       6638     2.25
   14     Media & Entertainment                              6579     2.23
   15     Personal Care                                      6549     2.22
   16     Finance - Housing                                  6372     2.16
   17     Steel And Steel Products                           6275     2.13
   18     Refineries                                         6068     2.06
   19     Auto Ancillaries                                   5949     2.02
   20     Electrical Equipment                               5779     1.96
   21     Diesel Engines                                     5627     1.91
   22     Chemicals - Inorganic                              5551     1.88
   23     Diversified                                        4944     1.68
   24     Pesticides And Agrochemicals                       4671     1.59
   25     Travel And Transport                               4651     1.58
   26     Power                                              3785     1.29
   27     Castings/Forgings                                  3617     1.23
   28     Hotels                                             3599     1.22
   29     Automobiles - 4 Wheelers                           3404     1.16
   30     Electronics - Industrial                           2962     1.01
                              Total                       294581    100.00
        * Free-float Mkt. Cap. as on Sept. 30, 2011
 Top 15 Companies as per Market Capitalization and Weightage

 Sr.                                                  Mkt. Cap.*   Weight
 No.                      Company Name                in Rs. Cr.    (%)
     1 Coal India Ltd.                                     21046      7.14
     2 Asian Paints Ltd.                                   14342      4.87
     3 Bank of Baroda                                      12827      4.35
     4 Adani Enterprises Ltd.                              12564      4.27
     5 Lupin Ltd.                                          11231      3.81
     6 UltraTech Cement Ltd.                               11153      3.79
     7 IndusInd Bank Ltd.                                   9351      3.17
     8 Glaxosmithkline Pharmaceuticals Ltd.                 8737      2.97
     9 Titan Industries Ltd.                                8661      2.94
  10 Shriram Transport Finance Co. Ltd.                     8133      2.76
  11 Mundra Port and Special Economic Zone Ltd.             7410      2.52
  12 United Spirits Ltd.                                    7018      2.38
  13 Zee Entertainment Enterprises Ltd.                     6579      2.23
  14 Yes Bank Ltd.                                          6560      2.23
  15 Colgate Palmolive (India) Ltd.                         6549      2.22
      *Free-float Mkt. Cap. as on Sept. 30, 2011

								
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