NSE set to launch derivatives on Nifty Next 50 Index (NIFTYNXT50) starting April 24, 2024

The National Stock Exchange of India (NSE), a leading derivatives exchange globally, is gearing up to introduce derivatives on the Nifty Next 50 index (NIFTYNXT50) starting April 24, 2024. This move follows approval from the Securities and Exchange Board of India (SEBI), marking a significant expansion in NSE’s derivatives offerings.The derivatives on NIFTYNXT50 will include three serial monthly index futures and index options contract cycles, all cash-settled, with expiry on the last Friday of the expiry month. The Nifty Next 50 Index represents 50 companies from the Nifty 100, excluding the Nifty 50 constituents. As of March 2024, the index boasts significant sector representation from financial services, capital goods, and consumer services.

Introduced on January 1, 1997, the index methodology has evolved over the years, with revisions to computation methodologies and weight capping. The index constituents currently hold a market capitalization of Rs 70 trillion, representing about 18% of the total market capitalization of stocks listed on NSE as of March 29, 2024.

Mr. Sriram Krishnan, Chief Business Development Officer of NSE, emphasized the strategic importance of introducing derivatives on NIFTYNXT50, stating that it will complement the existing index derivatives product suite effectively. The Nifty Next 50 index aims to bridge the gap between the Nifty 50 index and the Nifty Midcap Select index.In recent years, NSE has expanded its derivatives offerings, including derivatives on Nifty Midcap Select Index (MIDCPNIFTY) and Nifty Financial Services index (FINNIFTY), witnessing substantial trading activity. This latest addition underscores NSE’s commitment to providing diverse and robust investment opportunities to market participants.