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NSE set to launch Derivatives on Nifty Next 50 Index (NIFTYNXT50) from April 24, 2024
- Apr 22, 2024
Keeping to the trader-centric theme of the last few months, the NSE recently got SEBI’s nod to launch the Nifty Next 50 index. This index represents the 50 companies from Nifty 100 after excluding the Nifty 50 companies.
Trading with the symbol NIFTYNXT50, the index is set to debut on April 24, 2024. Here is a closer look at the index:
Sector Representation as on March 2024
Financial Services | 23.76% |
Capital Goods | 11.91% |
Consumer Services | 11.57% |
Fast Moving Consumer Goods | 10.62 |
Oil, Gas and Consumable Fuels | 6.5 |
Power | 6.07 |
Automobile and Auto Components | 5.71 |
Chemicals | 4.59 |
Construction Materials | 3.9 |
Metals & Mining | 3.72 |
Realty | 3.18 |
Consumer Durables | 2.98 |
Services | 2.79 |
Healthcare | 2.71 |
Other Need-to-Knows
NSE will offer 3 serial monthly Index Futures and Index Options contract cycles. The cash-settled Derivatives contracts will expire on the last Friday of the expiry month.
Check out the Contract Specifications here:
Particulars | Futures | Options |
Symbol | NIFTYNXT50 | NIFTYNXT50 |
Instrument | FUTIDX | OPTIDX |
Tick Size (Price Steps) | Re 0.05 | Re 0.05 |
Contract Size (Lot Size) | 10 | 10 |
Trading Cycle | 3 serial monthly contracts | 3 serial monthly contracts |
Expiry Day | Last Friday of the expiry month for the monthly. If the last Friday is a trading holiday, then expiry will be on the previous trading day. | |
Strike Scheme | - | Strike Interval of 100 with strikes 40-1-40 and Strike Interval of 500 with strikes 20-1-20 (including 500 strikes due to strike interval of 100) |
Option Type | - | Call European (CE) and Put |
Settlement | Cash Settled | Cash Settled |
Daily Settlement Price | Closing price of the futures contract. If illiquid, then theoretical price will be considered | - |
Final Settlement Price | Index closing value on the last trading day | Index closing value on the last trading day |
Price Band | Operating range of 10% of the base price | A contract specific price range based on its delta value is computed and updated daily |
Quantity Freeze | 600 | 600 |
Spread Contracts | M1-M2; M1-M3; M2-M3 | - |
On April 24, 2024, the following expiry cycles will be available:
Expiry Cycle | Expiry Day |
May 2024 | May 31, 2024 |
June 2024 | June 28, 2024 |
July 2024 | July 26, 2024 |
Reference: https://nsearchives.nseindia.com/web/sites/default/files/2024-04/PR_cc_18042024_1_0.pdf
Sources: NSE India: https://nsearchives.nseindia.com/content/circulars/FAOP61629.pdf and https://www.niftyindices.com/indices/equity/broad-based-indices/NIFTY-Next-50
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