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18 Apr 2024, 05:15 PM
NSE introduces F&O contracts on Nifty Next 50 Index
NSE will be introducing Futures and Options contracts on Nifty Next 50 Index w.e.f April 24, 2024. The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies.
If you have any questions about the index, post them here on TradingQ&A.
Top constituents in the index
| Company’s Name | Weight(%) |
|---|---|
| Trent Ltd. | 4.8 |
| Bharat Electronics Ltd. | 3.98 |
| Tata Power Co. Ltd. | 3.68 |
| Hindustan Aeronautics Ltd. | 3.43 |
| Indian Oil Corporation Ltd. | 3.39 |
| DLF Ltd. | 3.18 |
| Power Finance Corporation Ltd. | 3.12 |
| REC Ltd. | 3.08 |
| InterGlobe Aviation Ltd. | 2.79 |
| TVS Motor Company Ltd. | 2.76 |
Sector Representation
| Sector | Weight(%) |
|---|---|
| Financial Services | 23.76 |
| Capital Goods | 11.91 |
| Consumer Services | 11.57 |
| Fast Moving Consumer Goods | 10.62 |
| Oil, Gas & 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 |
Contract specifications of the Nifty Next 50 Index
| Particulars | Futures | Options |
|---|---|---|
| Symbol | NIFTYNXT50 | NIFTYNXT50 |
| Instrument | FUTIDX | OPTIDX |
| Tick Size | Re 0.05 | Re 0.05 |
| Lot Size | 10 | 10 |
| Trading Cycle | 3 serial monthly contracts | 3 serial monthly contracts |
| Expiry Day | Last Friday of the month, If Friday is holiday, then expiry will be on 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 European (PE) |
| 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 |
| Quantity Freeze | 600 | 600 |
| Price Band | Operating range of 10% of the base price | – |
| Spread Contracts | M1-M2; M1-M3; M2-M3 |
For more details, you can check the circular here and the factsheet here.