nse-set-to-launch-derivatives-on-nifty-next-50-index-niftynxt50-from-april-24,-2024

Sharekhan Blog

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

by Team Sharekhan

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