MEX stands for Median Equity Index. MEX is based on the line of thought that the true picture of equity market of any country or region can be better gauged through median value of price changes, in term of basis points, of all the shares traded on an leading liquid stock exchange of that country or region.
MEX has been created to complement existing indexes not replace them. MEX, median based; encompassing all companies, gives better picture of overall market. MEX can also be used to compare markets across the world more objectively.
MEXi denotes MEX for Indian equity markets. Similar notation could be used to communicate MEX values for other countries. For e.g. MEXj for MEX Japan; MEXu for MEX US; MEXuk for MEX UK; MEXc for MEX China; MEXb for MEX Brazil; MEXg for MEX Germany; MEXs for MEX Singapore; etc.
Base value for MEX is 1000. Separate MEX, with base value of 1000, is created for each year starting from the first day of trading. So, 'MEXi 2014' will created on the first day of trading on Bombay Stock Exchange in India. Value of previous years MEX will continue to be calculated based on latest stock market data.