After Sensex, Nifty, India to have third benchmark equity index After Bombay Stock Exchange Sensitive Index (Sensex) and National Stock Exchange (Nifty), India now has a third index called SX40 launched by the MCX Stock Exchange (MCS-SX) which has commenced operations on Monday. MCX-SX said that the SX40 is 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 based on ICB®, leading global Industry classification system from FTSE. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc. SX40 includes companies that have a minimum free float of 10%and is within the top 100 liquid companies, MCX-SX Managing Director & Chief Executive Joseph Massey said. Key Features of SX 40 -Superior return & risk adjusted return - A unique Index of India benchmarking global best practices of index designing -Better Reflection of the Organized Sector in the Economy through enhanced industry representation using ICB® of FTSE - Rule based, transparent & replicable - Industry capping eliminates industry bias and enhances Index stability - Lower churning rate - Low cost for funds (MFs, ETFs) construction and maintenance - Low tracking error for passive portfolio management (MFs, ETFs etc) MCX-SX, the third national stock exchange in India was formally inaugurated by Finance Minister P Chidambaram on Saturday.

After Bombay Stock Exchange Sensitive Index (Sensex) and National Stock Exchange (Nifty), India now has a third index called SX40 launched by the MCX Stock Exchange (MCS-SX) which has commenced operations on Monday.
MCX-SX said that the SX40 is 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 based on ICB®, leading global Industry classification system from FTSE. The Index is devised to offer cost-effective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc.
SX40 includes companies that have a minimum free float of 10%and is within the top 100 liquid companies, MCX-SX Managing Director & Chief Executive Joseph Massey said.
Key Features of SX 40
-Superior return & risk adjusted return
- A unique Index of India benchmarking global best practices of index designing
-Better Reflection of the Organized Sector in the Economy through
enhanced industry representation using ICB® of FTSE
- Rule based, transparent & replicable
- Industry capping eliminates industry bias and enhances Index stability
- Lower churning rate
- Low cost for funds (MFs, ETFs) construction and maintenance
- Low tracking error for passive portfolio management (MFs, ETFs etc)
MCX-SX, the third national stock exchange in India was formally inaugurated by Finance Minister P Chidambaram on Saturday.