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:
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%
