Nifty Next 50 Index Derivatives Launching April 24th on NSE

The National Stock Exchange (NSE) announced on Thursday that it will launch derivatives contracts for the Nifty Next 50 index from April 24 following approval from the Securities and Exchange Board of India (SEBI). The cash-settled derivatives contracts will expire on the last Friday of the expiry month, it has said.

The exchange has introduced derivative contracts of indices such as Nifty Midcap Select (MIDCPNIFTY) and Nifty Financial Services (FINNIFTY) in the equity segment over recent years. It has also rolled out several products in the commodity derivatives category.   

The Nifty Next 50, also known as Junior Nifty, becomes the fifth index to be added to the futures and options (F&O) space. After relaunching the Sensex and Bankex derivatives contracts, the exchange has steadily been gaining market share and acceptance from wider market participants.  

"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 capitalized stocks," said Sriram Krishnan, Chief Business Development Officer, NSE. Currently, F&O contracts are traded on the Nifty 50, Nifty Bank, Nifty Financial Services Index, and Nifty Midcap Select indices. However, the Nifty and the Nifty Bank account for a majority of the traded volumes.

Just like the Nifty 50 index, the Next 50 index has the highest weighting towards the financial services sector at 23.76 per cent, followed by capital goods and consumer services at 11.91 per cent and 11.57 per cent, respectively.

As of April 18, 2024, the Nifty Next 50 gauge has the following constituents:

Market Capitalization of Nifty Next 50

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

Contract Specifications: