The National Stock Exchange of India (NSE) has announced the forthcoming launch of derivatives linked to the Nifty Next 50 index (NIFTYNXT50) commencing April 24, 2024. Following regulatory approval from the Securities and Exchange Board of India (SEBI), NSE is set to augment its derivatives offerings, catering to the evolving needs of investors seeking diversified investment avenues.
The NIFTYNXT50 derivatives will comprise a trio of serial monthly index futures and index options contract cycles, all settled in cash and slated for expiry on the final Friday of each expiry month. Representing a curated selection of 50 companies from the Nifty 100, excluding constituents of the Nifty 50, this index mirrors robust sector representation, notably in financial services, capital goods, and consumer services.
Since its inception on January 1, 1997, the Nifty Next 50 index has undergone methodological enhancements, including revisions to computation methodologies and weight capping. As of March 29, 2024, the index’s aggregate market capitalization stands at a staggering Rs 70 trillion, constituting approximately 18% of the total market capitalization of stocks listed on NSE.Sriram Krishnan, NSE’s Chief Business Development Officer, lauded the impending rollout, emphasizing its synergy with NSE’s existing index derivatives product suite.
