INTRODUCTION ON CNX BANK NIFTY INDEX

With the onset of the evolution and transformation which the banking sector have been witnessing, in order to have a good benchmark of the Indian banking sector, India Index Service and Product Limited (IISL) has developed the CNX Bank Index.
CNX Bank Index is an index comprising of the most liquid and large capitalized Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market performance of Indian Banks. The index currently has 12 stocks in its kitty from the banking sector which trades on the National Stock Exchange. The total traded value for the last six months of CNX Bank Index stocks was approximately 75% of the traded value of the banking sector. CNX Bank Index stocks represented about 85% of the free float market capitalization of the banking sector as on September 30, 2010.The total traded value for the last six months of all the CNX Bank Index constituents had been approximately 11% of the traded value of all stocks on the NSE. CNX Bank Index constituents represented about 12% of the free float market capitalization as on September 30, 2010.

Following criteria have been laid down for the inclusion of the stocks in the index :

1. Company's market capitalization rank in the universe should be less than 500

2. Company's turnover rank in the universe should be less than 500.

3. Company's trading frequency should be at least 90% for the last six months.

4. Company should have a positive net worth.

5. 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 6 month period.

For detailed analysis on BANK NIFTY FUTURES, BANK NIFTY or CNX BANK NIFTY, please go to the next page

BANK NIFTY STOCKS

We are laying down before you the complete description of each banking stock underlying in Bank Nifty. We shall be giving you the comprehensive description on the technical analysis of each stock through data analysis, candlestick patterns and chart patterns determining the future expecting movement of the stocks through the medium of the technical charts. Moreover, the technical aspect of every stock would be supported by the comparative financial statement analysis, ratio analysis and the share valuation dividend growth models from the financial year ending March; 2006 onwards. The valuation of the shares has been based on whether or not the bank concerned has been consistent enough to pay the dividends to their shareholders. All the details will be updated on the quarterly basis to make you aware of the ongoing position in each respective banking stock.

Following are the list of stocks mentioned below underlying in Bank Nifty.