Derivative contracts on Nifty Next 50 (NIFTYNXT50)

The National Stock Exchange (NSE) on Thursday said it will introduce derivative contracts on Nifty Next 50 (NIFTYNXT50) index from April 24. The exchange will offer three serial monthly index futures and index options contract cycles. The cash-settled derivatives contracts will expire on the last Friday of the expiry month.

Sriram Krishnan, the Chief Business Development Officer at NSE, stated that the introduction of derivatives on the Nifty Next 50 index (NIFTYNXT50) will enhance the existing index derivatives product suite. The Nifty Next 50 index fills the gap between the Nifty 50 index, comprising the top large and liquid stocks, and the Nifty Midcap Select index, consisting of the top large and liquid mid-capitalized stocks.

The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies. As on March 2024, the index had top-sector representation from

  • financial services sector with 23.76%
  • capital goods sector with 11.91% and
  • consumer services with 11.57%.

The market capitalization of index constituents stands at Rs 70 trillion representing about 18% of total market capital of the stocks listed on NSE as of March 29, 2024.

The aggregate daily average turnover of index constituents stood at Rs 9,560 crores accounting for around 12% of cash market turnover in FY24.

The Nifty Next 50 index has a 71% correlation and a Beta value of 0.95 with the Nifty 50 Index. It has a correlation of 90% with the Nifty Midcap 150 index in the financial year 2024.