Standard & Poor?s (S&P) in partnership with India Index Services & Products Ltd (IISL) launched two new investable Shari?ah indices for the Indian equity market, the S&P CNX 500 Shari?ah and S&P CNX Nifty Shari?ah.
S&P said in a statement that these new Shari?ah indices were derived from the S&P CNX 500 and S&P CNX Nifty indices, which are the leading gauges of the Indian equity market.
The S&P CNX 500 covers more than 90% of the total market capitalisation and more than 80% of total traded volume on the National Stock Exchange (NSE) and is the benchmark for the Indian stock market. The S&P CNX Nifty represents the largest and most liquid companies listed on the NSE, the rating agency said.
?These new Shari?ah-compliant indices provide investors with a comparable investable portfolio while adopting explicit selection criteria defined by the Islamic law. They are indicative of the appetite among investors for investable Shari?ah-compliant indices covering all types of markets,? Alka Banerjee, vice president of Index Services at S&P said.
The S&P CNX 500 Shari?ah comprises 263 companies with a market capitalisation of Rs 13,196 billion, while the S&P CNX Nifty Shariah comprises 40 companies with a market capitalisation of Rs 9,832 billion.