The country’s new stock exchange MCX-SX would start functioning from Diwali and along with the new exchange, the investors and traders are in for a new index as well. The MCX-SX, which is expected to be a full-fledged stock exchange, is set to begin trading with about 1,000 – 1,200 stocks. MCX-SX will commence trading in cash market and derivative segments (futures and options).
Not only the exchange, MCX-SX is all set to take on the country’s two most popularly traded equity indices, the Sensex-30 and the Nifty-50, with its own benchmark index SX-40. It will select top stocks from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to create the SX-40. The new index, SX-40 is expected to consisting of BSE-30 stocks and the rest 10 would be of picked from stocks reflecting the growth story of India.
Currently, the Sensex and Nifty are recognised globally, of which NSE comprising of exchange-traded funds (ETFs), exchange-traded futures and options and other index funds, generates a little over half of the trading volumes in India’s equity derivative market. The new exchange MCX-SX and the new index SX-40 is definitely bound to catch everyone’s attention globally as well as locally.