>CNX Nifty Junior

The next rung of liquid securities after S&P CNX Nifty is the CNX Nifty Junior index. 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, so they are the most liquid of the stocks excluded from the S&P CNX Nifty.

The maintenance of the S&P CNX Nifty and the CNX Nifty Junior are synchronised so that the two indexes will always be disjoint sets; i.e. a stock will never appear in both indexes 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.

The main features of the CNX Nifty Junior Index are:

• CNX Nifty Junior represents about 10% of the total market capitalisation as on August 31, 2004
  
• The average traded value for the last six months of all Junior Nifty stocks is approximately 8% of the traded value of all stocks on the NSE
  
• Impact cost for CNX Nifty Junior for a portfolio size of Rs.2.50 million is 0.30%

>S&P CNX Nifty

The NSE S&P CNX Nifty 50 index is a well diversified 50 stock index accounting for 24 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

Technical Analysis of Indian stock market NSE S&P CNX Nifty 50 Index

NSE S&P CNX Nifty 50 is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialised company focussed upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services.

The main features of the NSE S&P CNX Nifty 50 index are:

• The average total traded value for the last six months of all Nifty stocks is approximately 77% of the traded value of all stocks on the NSE
  
• Nifty stocks represent about 61% of the total market capitalisation as on August 31, 2004.
  
• Impact cost of the S&P CNX Nifty for a portfolio size of Rs.5 million is 0.10%
  
• S&P CNX Nifty is professionally maintained and is ideal for derivatives trading.