Mumbai: India Index Services & Products, an NSE group company, will bring down the number of stocks in the CNX IT index to 10 from May 29 onwards.
At present, the index has 20 stocks.
HCL Technologies, Infosys, TCS, Justdial, MindTree, Info Edge, Oracle Financial Services Software, Tech Mahindra and Wipro would be the 10 scrips to remain in the index.
IISL CEO Mukesh Agarwal in a statement said rebalancing of the CNX IT index would facilitate ease of investment for investors.
The weightages of each company in the CNX IT, which tracks the performance of Indian IT companies, would be capped at 25 per cent at the time of rebalancing of the index.
At present, CNX IT index is calculated based on free-float market capitalisation method comprising of 20 stocks.
Firstsource Solutions, eClerx Services, Hexaware Technologies, KPIT Technologies, MphasiS, NIIT Technologies, Persistent Systems, Polaris Consulting & Services, Rolta India, Tata Elxsi are the 10 firms which would be excluded from the index.
The changes were decided by the IISL's Index Maintenance Sub-Committee.
"Effective May 29 (close of May 28), the index shall be computed with 10 companies," the statement said.
