MCX-SX plans 40-stock barometer index

MCX-SX, the latest entity to set up a full-fledged stock exchange, on Wednesday said its barometer index would comprise of 40 top stocks based on liquidity and non-promoter market value among other factors.

To be called 'SX-40', the new flagship index of MCX-SX (MCX Stock Exchange) would compete with other benchmark indices like BSE's 30-share Sensex and NSE's 50-stock Nifty.

MCX-SX, which is currently present in currency derivatives segment only, recently got the market regulator Sebi's approval to set up a full-fledged stock exchange and plans to begin operations around mid-November.

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.