NSE to launch Nifty Next 50 index derivatives this month, gets SEBI nod

NSE will launch derivatives on its popular Nifty Next 50 index, effective April 24, 2024. The exchange has received the approval from Securities and Exchange Board of India (SEBI) for the same.

“The NSE Exchange will offer a cycle of three serial monthly index futures and index options contracts. These cash-settled derivatives contracts will expire on the last Friday of the expiry month,” stated the exchange filing.

“The introduction of derivatives on the Nifty Next 50 index (NIFTYNXT50) will complement the existing index derivatives product suite well. The Nifty Next 50 index represents the space between the Nifty 50 index, comprising the top large and liquid stocks, and the Nifty Midcap Select index, comprising the top large and liquid mid-capitalized stocks,” said Sriram Krishnan, Chief Business Development Officer, NSE.

What are the constituents of the NSE Nifty Next 50 index?

The Nifty Next 50 Index consists of 50 companies from the Nifty 100, excluding the Nifty 50 companies. The index is also sometimes referred to as Junior Nifty.

As of March 2024, the index had the top sector representation from the financial services sector, with a weight of 23.76 percent, followed by the capital goods sector at 11.91 percent and consumer services at 11.57 percent. The index was introduced on January 1, 1997, with the base date and base value being November 3, 1996, and 1000, respectively.

Market Capitalization of Nifty Next 50

The market capitalisation of index constituents stands at Rs 70 trillion, representing about 18 percent of the total market capitalisation of the stocks listed on NSE as of March 29, 2024. The aggregate daily average turnover of index constituents stood at Rs 9,560 crores, accounting for around 12 percent of the cash market turnover in FY24.

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