Almost every institutional investor and offshore fund enterprise with equity exposure in India would like to have an instrument for measuring returns on equity investment in terms of dollars. To facilitate this, a new index the S&P CNX Defty, a dollar-denominated S&P CNX Nifty, has been developed. S&P CNX Defty is S&P CNX Nifty, measured in dollars. It provides an effective tool for hedging Indian equity exposure. It also provides fund managers an instrument for measuring returns on their equity investment in dollars.