MCX-SX launches its new benchmark Index 'SX-40'
MCX-SX, which received permission from the regulator to launch its equity trading platform after waiting for over two years, has launched its benchmark index ‘SX-40’ that would compete with incumbent Sensex of the BSE and Nifty of the NSE
Financial Technologies-promoted MCX Stock Exchange (MCX-SX) has launched its benchmark index ‘SX-40’. The index would be based on the free-float formula, which is also the formula used by BSE and NSE for its indices. Interestingly, while BSE’s Sensex has 30 stocks and NSE’s Nifty has 50 stocks, MCX-SX has chosen to be in the middle of two, with 40 stocks. MCX-SX said 'SX-40' will be a free-float based index of large market-cap and liquid stocks representing most important sectors.
The exchange said that further details of the stocks forming part of the index and their weight, among others, would be announced by MCX-SX before the launch of its equity segment. These indices may be used as performance benchmarks and also form the basis for many financial products such as institutional and retail funds, exchange traded funds and derivative contracts.
MCX-SX said it would collaborate with Indian Statistical Institute (ISI)—India’s premier research institute, FTSE of London and FTKMC in creating various domestic and global indices.