Nifty Next 50 Indexes- In a recent news, the NSE is set to launch 3 serial monthly derivatives and index contracts. These will expire on the last Friday of the expiry month decided.
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Effective April 24, 2024, NSE will introduce derivatives on its well-known Nifty Next 50 index. The Securities and Exchange Board of India (SEBI) has granted the exchange permission for the same.
“Three consecutive monthly index futures and index options contracts will be made available by the NSE Exchange. The final Friday of the expiration month is when these cash-settled derivatives contracts expire, according to the exchange filing.
“The addition of Nifty Next 50 index (NIFTYNXT50) derivatives would be a good addition to the current portfolio of index derivatives products. According to Sriram Krishnan, Chief Business Development Officer of the NSE, “The Nifty Next 50 index represents the space between the Nifty 50 index, comprising the top large and liquid stocks, and the Nifty Midcap Select index, comprising the top large and liquid mid-capitalized stocks.”
What makes up the NSE Nifty Next 50 index’s composition?
With the exception of the Nifty 50 firms, the Nifty Next 50 Index is made up of 50 companies from the Nifty 100. The Junior Nifty index is another name for it.
The index had the highest sector representation from the financial services sector as of March 2024, with a weight of 23.76 percent. This was followed by the capital goods sector, which gave the index a weight of 11.91 percent, and consumer services, which gave the index a weight of 11.57 percent. The index was first released on January 1, 1997, with the date of the base date being November 3, 1996, and the value of the base date being 1000.
Capitalization of the Nifty Next 50 index on the market
As of March 29, 2024, the market capitalization of the members of the index is estimated to be 700 trillion rupees, which is equivalent to about 18 percent of the entire market capitalization of the equities that are listed on the National Stock Exchange. During the fiscal year 24 (FY24), the total daily average turnover of index constituents occurred at Rs 9,560 crores, which was equivalent to about 12 percent of the total turnover of the cash market.
Read more at StockFinz.