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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
Team Sharekhan
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