Business

NSE Launches Derivatives Trading For Nifty Next 50 Index Today

Trading of derivatives on the Nifty Next 50 Index (NIFTYNXT50) starts today on the NSE.

SEBI has given the green light for these derivatives on the Nifty Next 50 Index at NSE.

The Nifty Next 50 index includes 50 companies from the Nifty 100, excluding those in the Nifty 50.

Derivative contracts are short-term financial tools with a set expiration date. They are based on various assets like stocks, commodities, currencies, indices, exchange rates, or interest rates.

In the financial year 2024, the Nifty Next 50 index demonstrates a robust 71% correlation and a Beta value of 0.95 when compared to the Nifty 50 Index. Additionally, it showcases a notable correlation of 90% with the Nifty Midcap 150 index.

Over recent years, the National Stock Exchange has expanded its derivatives market offerings.

In January 2022, NSE introduced derivatives trading on the Nifty Midcap Select Index (MIDCPNIFTY). Similarly, in January 2020, derivatives were launched on the Nifty Financial Services index (FINNIFTY) within the equity derivatives segment.

Moreover, NSE has diversified its product portfolio by introducing multiple offerings in the commodity derivatives segment.

Earlier on 23 April, NSE unveil a White Paper detailing insights into these index derivatives

NSE in it’s circular said that the cash-settled derivatives contracts will reach their expiration on the last Friday of the expiry month.

Meanwhile, NSE announced that there will be no transaction charges for trading in F&O contracts on the Nifty Next 50 index.

This waiver will be effective from 24 April 2024, until 31 October 2024, spanning six months.

Also Read: Equities Soar For 3rd Day On Strong Global Trends

Mankrit Kaur

Recent Posts

JP Nadda Slams Rahul Gandhi’s ‘Match-Fixing’ Claims As ‘Desperation Of Losing’ Polls

Rahul Gandhi's opinion piece appeared in a national daily and sparked political uproar. Opposition parties…

29 mins ago

Poverty In India Reduced Via Tangible Boost In Household Living Standards, Incomes

In 2022–23, poverty under the revised $3.00 line stood at just 5.25 per cent in…

48 mins ago

Chhattisgarh: Seven Maoists Killed In Indravati National Park Operation

Five Maoists were killed in two separate encounters with security forces in Chhattisgarh’s Bijapur district,…

1 hour ago

Carney Invites Modi To G7 Summit, Highlights India’s Global Supply Chain Role

Canadian Prime Minister Mark Carney said the most populous country, with the fifth-largest economy, must…

2 hours ago

RBI Frontloads Rate Cuts To Boost Growth Amid Low Inflation: Crisil

The Reserve Bank of India (RBI) has frontloaded its rate cuts to support economic growth,…

2 hours ago

PM Modi Urges Global Action On Coastal Resilience At Nice Summit

PM Narendra Modi on Saturday called for urgent global action to build infrastructure that can…

3 hours ago