NSE to launch Nifty Next 50 derivatives from April 24

NSE Nifty Next 50 (NIFTYNXT50) futures & options contract latest news: Stock exchange NSE said on Thursday that it will launch the derivatives contracts based on its Nifty Next 50 index (NIFTYNXT50) from April 24, with approval from capital market regulator Sebi in place. 

The bourse will offer three serial monthly index futures and index options contracts, wherein the cash settled derivatives will expire on the last Friday of each expiry month, it said in a statement. 

The introduction of Nifty Next 50 index derivatives will well complement the existing index derivatives product suite, said Sriram Krishnan, Chief Business Development Officer, NSE. "The Nifty Next 50 index will represent the space between the Nifty 50 index comprising the top large & liquid stocks and the Nifty Midcap Select index comprising the top large & liquid mid capitalised stocks," added Krishnan.

The exchange has introduced derivative contracts of indices such as Nifty Midcap Select (MIDCPNIFTY) and Nifty Financial Services (FINNIFTY) in the equity segment over recent years. It has also rolled out several products in the commodity derivatives category. 

What is the NSE Nifty Next 50 index?

Introduced on January 1, 1997, with a base date of November 3, 1996, and a base value of 1,000, the Nifty Next 50 Index today represents 50 companies from the Nifty 100 after excluding the members of the headline Nifty 50 index.

NSE Nifty Next 50 stock list

As of April 18, 2024, the Nifty Next 50 gauge has the following constituents:

As of March 2024, three sectors held the maximum weightage in the Nifty Next 50 index:

• Financial services sector: 23.76 per cent
• Capital goods sector: 11.91 per cnet
• Consumer services: 11.57 per cent

The market capitalisation of Nifty Next 50 index constituents stood at Rs 70 lakh crore, representing about 18 per cent of the market value of the NSE-listed stocks, as of March 29, 2024.

As of September 29, 2023, the Nifty Next 50 index represented about 10 per cent of the free float market capitalisation of all the stocks listed on NSE.