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The flagship index of the MCX Stock Exchange (MCX-SX) will be known as “SX-40”, said Jignesh Shah, Vice-Chairman of the new stock exchange.
The SX-40 will be a free-float-based index of large market-cap and liquid stocks representing most importing sectors.
MCX-SX will work with Indian Statistical Institute, a research organisation, for its indices, Shah said after a membership roadshow of the stock exchange here on Wednesday.
Plans are afoot to roll out several indices with sectoral flavour as well as international markets, said Joseph Massey, Managing Director & CEO .
Outlining the philosophy behind naming the flagship index as “SX-40”, Shah said that life begins at 40.
“When you are 30, you are energetic, young, full of enthusiasm and vibrancy. But on experience and seasoned approach, maturity… you are still young. At 50, you are a little stagnant and on the other side of the curve. But you have experience. I believe 40 is when life begins. So, we have decided to title the index as SX-40,” he said.
His remark on 30 and 50 was seen as an apparent reference to the BSE Sensex, which is a benchmark index of 30 companies and Nifty-50, which is the flagship index of the NSE comprising 50 stocks.
‘Right-sized number’
“SX-40 will capture not only market-cap convergence, but also the growth of the country. It is a very right-sized number to represent the sentiment of India,” Shah said.
There are indications that some special weightage would be assigned for sectors showing exemplary growth.
Asked about the launch date for the equity segment, Shah said it was planned for Diwali. At the same time, he made it clear that no compromise would be made as regards the mock run and membership application processing.
The details of securities, weights, etc, will be announced before the launch of the equity segment, said Massey.
Asked how many stocks will be available for trade on the launch date, he said potentially all of them will be available. Those that would be available for trade on the launch date will be listed under the ‘permitted category’, he added.
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