Energy sector is universally recognized as one of the most significant inputs for economic growth. The growth of a nation, encompassing all sectors of the economy and all sections of society, is contingent on meeting its energy requirements adequately. Energy is a crucial input for India's development process.

IISL has developed CNX Energy Index to capture the performance of the companies in this sector. CNX Energy Index was computed using market capitalization weighted method from the launch date till October 08, 2010.however, it was recomputed using the free float market capitalization weighted method where from October 11; 2010. The base period is the month of January, 2001, with a base value of 1000.

The CNX Energy Index represented about 80.17% of the market capitalization and 54.45% of turnover of the last six months for the period Sep 30, 2010 of the Energy Sector Universe respectively.

Following selection criteria has been laid out for the inclusion of the stocks in this particular 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% in the last one year.

4. Company should have a minimum track record of 3 years of operations with 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 a 6 month period.