The National Stock Exchange (NSE) is gearing up to introduce derivatives on its Nifty Next 50 index, expanding investment avenues for traders and investors. Comprising 50 companies from the Nifty 100, excluding the Nifty 50 constituents, this index, also known as Junior Nifty, offers diversified sectoral representation. With the top sectors including financial services, capital goods, and consumer services, the index mirrors the broader market sentiment.
Scheduled to launch on April 24, 2024, these derivatives will include three serial monthly index futures and index options contracts, settling cash on the last Friday of each expiry month. Sriram Krishnan, NSE’s Chief Business Development Officer, highlighted the derivatives’ role in bridging the gap between Nifty 50 and Nifty Midcap Select indices, offering exposure to the mid-cap segment.
This move aligns with NSE’s strategy to enhance its index derivatives product suite, catering to investors seeking diversified exposure and risk management tools. As India’s derivatives market expands, investors can anticipate leveraging the potential of the Nifty Next 50 derivatives to optimize their investment portfolios.
