MARKET INDEX A stock index or stock market index is a method of measuring the value of a section of the stock market.

It is computed from the prices of selected stocks (sometimes a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments. An index is a mathematical construct, so it may not be invested in directly. But many mutual funds and exchange-traded funds attempt to "track" an index and those funds that do may not be judged against those that do.

CALCULATION OF MARKET INDEX (EXPLANATION) Suppose the Index consists of only 2 stocks: Stock A and Stock B. Suppose company A has 1,000 shares in total, of which 200 are held by the promoters, so that only 800 shares are available for trading to the general public. These 800 shares are the so-called 'freefloating' shares. Similarly, company B has 2,000 shares in total, of which 1,000 are held by the promoters and the rest 1,000 are free-floating. Now suppose the current market price of stock A is Rs 120. Thus, the 'total' market capitalization of company A is Rs 120,000 (1,000 x 120), but its free-float market capitalization is Rs 96,000 (800 x 120). Similarly, suppose the current market price of stock B is Rs 200. The total market capitalization of company B will thus be Rs 400,000 (2,000 x 200), but its free-float market cap is only Rs 200,000 (1,000 x 200). So as of today the market capitalization of the index (i.e. stocks A and B) is Rs 520,000 (Rs 120,000 + Rs 400,000); while the free-float market capitalization of the index is Rs 296,000. (Rs 96,000 + Rs 200,000). The year 1978-79 is considered the base year of the index with a value set to 100. What this means is that suppose at that time the market capitalization of the stocks that comprised the index then was, say, 60,000 (remember at that time there may have been some other stocks in the index, not A and B, but that does not matter), then we assume that an index market cap of 60,000 is equal to an indexvalue of 100. Thus the value of the index today is = 296,000 x 100/60,000 = 493.33

CNX ENERGY INDEX Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately. As a fast-growing economy, India has become one of the largest energy intensive countries in the World. Energy is a crucial input for India's development process. The need of the hour, therefore, is to meet the energy needs of all segments of India's population in the most efficient and cost-effective manner while ensuring long-term sustainability. IISL has developed CNX Energy Index to capture the performance of the companies in this sector. Energy sector Index will include companies belonging to Petroleum, Gas and Power sub sectors.

METHODOLOGY Effective October, 11, 2010, CNX Energy Index is computed using free float market capitalization weighted method, wherein the level of the index reflects the total 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. The CNX Energy Index has a base date of Jan 1, 2001 and a base value of 1000.

MARKET REPRESENTATION

The CNX Energy Index represents about 10.39% of the free float market capitalization of the stocks listed on NSE and 84.44% of the free float market capitalization of the stocks forming part of the Energy sector universe as on December 31, 2012.

The total traded value for the last six months ending December 2012 of all index constituents is approximately 6.43% of the traded value of all stocks on NSE and 67.78% of the traded value of the stocks forming part of the Energy sector universe.

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INDEX CONSTITUENTS -