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Pharmaceuticals sector is one of the key sectors where Indian companies have created a global brand for themselves besides software. Indian companies have taken advantage of the opportunities in the regulated generics market in the western countries and made deep inroads especially in providing low cost equivalents of expensive drugs. Pharma outsourcing into India and low cost Healthcare services are expected to be the key areas of growth in the near future. In addition, the inherent potential of biotechnology has also attracted many new companies and this is also a key growth area for Indian companies. IISL has developed CNX Pharma Index to capture the performance of the companies in this sector.
Market Representation
Selection of the index set is based on the following criteria:
Market Representation
- The CNX Pharma Index represents about 6.02% of the free float market capitalization of the stocks listed on NSE and 78.29% of the free float market capitalization of the stocks forming part of the Pharmaceutical sector universe as on March 31, 2015.
- The total traded value for the last six months ending March 2015 of all Index constituents is approximately 4.41 of the traded value of all stocks on NSE and 54.73% of the traded value of the stocks forming part of the Pharmaceutical sector universe.
Selection of the index set is based on the following criteria:
- Companies must rank within the top 500 companies ranked by average free-float market capitalization and aggregate turnover for the last six months.
- Companies should form a part of pharmaceutical sector.
- The company’s trading frequency should be at least 90% in the last six months.
- The company should have reported a positive net worth.
- The company should have an investable weight factor (IWF) of at least 10%.
- The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
- Final selection of 10 companies shall be done based on the free-float market capitalization of the companies.
- The review will be carried out on a semi-annual basis.
- Below is the list of stocks included in this index.