India's largest bourse the National Stock Exchange ( NSE) on Wednesday launched the futures and options contracts on the Nifty Next 50 Index. The first day witnessed 1,223 number of contracts worth Rs 78.16 crore being traded in futures along with Rs 1.55 crore worth of premium turnover in 1,724 number of options contracts.
A release by the NSE claimed that the new derivatives contract received a positive response from market participants with more than 375 trading members from across the country participating in the index derivatives. The trading members involved in execution of the initial trade include East India Securities Limited, and Samco Securities Limited.
The Nifty Next 50 index provides representation to large capitalisation stocks beyond the Nifty 50 index. The stocks part of the Nifty Next 50 are the potential contenders for being included in the coveted list of 50 stocks forming part of the Nifty 50 index.
The financial services sector has the highest weightage in the index accounting for 23.76% followed by capital goods sector with 11.91% and consumer services sector with 11.57%.
In 2023, NSE remained as the world’s largest derivatives exchange for the fifth year in a row based on contracts traded.
The Nifty Next 50 index futures and options contracts with its contract symbol 'NIFTYNXT50' are available with a trading cycle of 3 serial monthly contracts. The derivatives are cash settled with expiry day being the last Friday of the expiry month.
Exchange has provided a transaction fee waiver on the Nifty Next 50 Index derivatives up to October 2024.
On the occasion, Sriram Krishnan, Chief Business Development Officer in the NSE said that the derivative product is unique considering the underlying index does not have overlapping constituents with the other market capitalisation based broad indices on which derivatives are available on NSE. With increasing interest of participants beyond the top 50 stocks, this index will provide an additional tool for risk management, he added.
Also Read: Nifty Bank closes above 48K; immediate resistance seen around 48,500: Analysts
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
A release by the NSE claimed that the new derivatives contract received a positive response from market participants with more than 375 trading members from across the country participating in the index derivatives. The trading members involved in execution of the initial trade include East India Securities Limited, and Samco Securities Limited.
The Nifty Next 50 index provides representation to large capitalisation stocks beyond the Nifty 50 index. The stocks part of the Nifty Next 50 are the potential contenders for being included in the coveted list of 50 stocks forming part of the Nifty 50 index.
The financial services sector has the highest weightage in the index accounting for 23.76% followed by capital goods sector with 11.91% and consumer services sector with 11.57%.
In 2023, NSE remained as the world’s largest derivatives exchange for the fifth year in a row based on contracts traded.
The Nifty Next 50 index futures and options contracts with its contract symbol 'NIFTYNXT50' are available with a trading cycle of 3 serial monthly contracts. The derivatives are cash settled with expiry day being the last Friday of the expiry month.
Exchange has provided a transaction fee waiver on the Nifty Next 50 Index derivatives up to October 2024.
On the occasion, Sriram Krishnan, Chief Business Development Officer in the NSE said that the derivative product is unique considering the underlying index does not have overlapping constituents with the other market capitalisation based broad indices on which derivatives are available on NSE. With increasing interest of participants beyond the top 50 stocks, this index will provide an additional tool for risk management, he added.
Also Read: Nifty Bank closes above 48K; immediate resistance seen around 48,500: Analysts
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
