Shariah is the religious law of the followers of Islam this guides their normal day to day life and also their investment decisions . Shariah prohibits "believers" from investing in companies dealing in alcohol, financial services as they earn by lend money and charging Interest , tobacco,entertainment (cinemas),pork,weapons.
This would mean , a whole range of companies are "Haram" for the believers , these includes companies like ITC,United Spirits,All our Banks , Housing Finance companies and lot of other companies.
So Shariah Index would be a index of companies listed on our stock exchange that conform to the tenets of Shariah Law
The Shariah Index would give a chance to the followers of Shariah law a chance to participate in the Indian stock market , if they so desire.
S&P CNX Nifty Shariah is a India based Shariah Index , know more about this Index and ETF based on this Index here
Image : FreeDigitalPhotos.net,Photographer: maple
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