cnx it index

7/30/2019 CNX IT INDEX

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CNX IT INDEX

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Cont.

NSE CNX IT Sector Index Information Technology (IT) industry

has played a major role in the Indianeconomy during the last few years. Anumber of large, profitable Indiancompanies today belong to the IT sectorand a great deal of investment interest

is now focused on the IT sector. Inorder to have a good benchmark of theIndian IT sector, IISL developed theCNX IT sector index.

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Companies in this index are thosethat have more than 50% of theirturnover from IT related activities like

software development, hardwaremanufacture, vending, support andmaintenance. The index is a marketcapitalisation weighted index with its

base period being December 1995and the base date and base valuebeing January 1, 1996 and 1,000

respectively.


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NSE CNX IT Sector Index

CNX IT Index is an index comprisedof the most liquid and large

capitalization IT stocks, traded on theNSE, engaged in the business ofsoftware or hardware. CNX ITprovides investors and marketintermediaries with an appropriatebenchmark that captures theperformance of the IT segment of the

market.


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The index is a market capitalizationweighted index with base date being1st January 1996 and base index

value being 1000. Companiesselected in the index have to be ITstocks which should rank high interms of market value represented by

their market capitalization andliquidity.


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Method of Computation

The CNX IT Index is calculated using

the market capitalisation weightedaggregate method.

Selection Criteria

Market CapitalisationThe influence of each company on the

index is directly proportional to its


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Fund

Kotak Global Emerging Markets Scheme is an open

ended equity scheme with an investment objectiveof providing long term capital appreciation byinvesting in an overseas mutual fund scheme thatinvests in a diversified portfolio of securities asprescribed by SEBI from time to time in globalemerging markets.

The scheme is suitable for long term investors witha higher risk appetite and who wish to supplementexisting holdings with exposure to investmentopportunities in globally emerging economies.

The NAV of this fund on the date of inception is

9.228 and on 21st August,2012 it is 10.924. So,the growth is 18.37%.

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INDICATORS OF MUTUAL FUND GROWTH

The long term outlook continues to remain positive

for Indian equities as the economic growthmomentum remains healthy. Finance Minister P Chidambaram on 6th August

said that the ministry will come out with a numberof measures to attract more people to invest inmutual funds and insurance products as both themutual fund industry and the insurance sectorhave turned sluggish.

The key to restart the growth engine is to attractmore investment, both from domestic investorsand foreign investors.

Mutual Fund honchos, SEBI, AMFI and FIFA had aseries of meeting with the finance ministry lastmonth to give their recommendation to bolster theMF industry.

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Cont

The suggestions were to give pensionbenefits to mutual fund schemes, allowingAMCs to charge service tax from investors,additional tax benefits for investments inmutual funds.

Now the Indian mutual funds industry iswitnessing a rapid growth on the back ofinfrastructural development, increase inpersonal financial assets, and rise in foreignparticipation.

The growing risk appetite, rising income, andincreasing awareness, mutual funds in Indiaare becoming a preferred investment optioncompared to other investment vehicles, likeFixed Deposits (FDs) and postal savings

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PERFORMANCE OF CNX ITINDEX

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CNX IT HISTORIC DATA

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GROWTH

According to NASSCOM, India can reach $ 130 Billion inIT revenue by 2015, with CAGR of 14%. With this, itwould be contributing to 7% of annual GDP andcreating 14.3 million employment opportunities.

Rupee has depreciated against US dollar makingexports cheaper.

Export growth and higher margins do correlate stronglyin the long-term with a weaker currency. Right now,most developed economies are not increasing ITspends. As and when they do, Indian firms will remainamong the most competitive and hence, see thequickest growth.

Stock Info: Infosys has arrested the downtrend. HCLTech is continuously shown a strength this week whileTCS is now very close to levels of 1285-1290, and ifthis level is breached on the upside that would propelthe stock into news highs. So may be IT could gainstrength .

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Thank You

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cnx it index

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