The NSE has received SEBI’s approval to launch futures and options on the Nifty Next 50 index starting April 24, 2024. These derivatives will include three serial monthly contracts for both index futures and options, expiring on the last Friday of the respective month.
Trading of these derivatives is designed to be cash-settled, with the contracts expiring based on the schedule unless adjusted for public holidays. This addition aims to enhance the trading flexibility and market depth of the Nifty Next 50 index, which is also known as the Junior Nifty.
The Nifty Next 50 index includes companies ranked 51-100 by market capitalization from the Nifty 100 index, excluding the top 50 that form the Nifty 50 index. As of March 2024, this index prominently features sectors like financial services, capital goods, and consumer services.
The introduction of these derivatives is part of NSE’s broader strategy to diversify available trading options. This move coincides with the introduction of other indices earlier in April and follows a newly implemented margin framework set to start after these contracts’ first expiry.
Overall, this development reflects NSE’s commitment to providing varied financial instruments. The introduction of the Nifty Next 50 derivatives is expected to attract more investors looking for nuanced investment opportunities in India’s dynamic market landscape.
