NSE Launches Derivatives On Nifty Next50 From April 24!

The National Stock Exchange (NSE) has announced the launch of derivative contracts for the Nifty Next 50 index which will come into effect from April 24th. This announcement comes after the NSE received approval from the market regulator, SEBI. 

NSE has stated that the lot size is fixed at 10 for futures and options. The trading cycle will be 3 serial monthly contracts and the expiry will be the last Friday of the expiry month for cash-settled derivatives. In situations where Friday is a trading holiday, then the expiry day will be the previous trading day. 

Currently, derivative contracts are traded on the Nifty 50, Nifty Bank, Nifty Financial Services Index, and Nifty Midcap Select indices. This addition will make Nifty Next 50 the fifth index added to the derivatives segment. Sriram Krishnan, NSE’s Chief Business Development Officer, has stated that the introduction of the Nifty Next 50 index for derivatives will further complement the existing index derivatives product suite. “The Nifty Next 50 index will represent the space between the Nifty 50 index comprising the top large & liquid stocks and the Nifty Midcap Select index comprising the top large & liquid mid-capitalised stocks,” added Krishnan. 

What is the Nifty Next 50 Index? 

The Nifty Next 50 index comprises of Nifty 100 companies excluding the Nifty 50 companies. Companies listed in Nifty Next 50 are perceived to be aspirants for the coveted Nifty 50 Index. As of March 2024, the market capitalisation of Nifty Next 50 index constituents stood at ?70 lakh crore, representing about 18 percent of the market value of the NSE-listed stocks and 10 percent of its free float market capitalisation.