Home Stock Analysis Next week, NSE will introduce monthly F&O contracts for junior Nifty.

Next week, NSE will introduce monthly F&O contracts for junior Nifty.

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NSE launches Nifty Next 50 F&O contracts

NSE launches Nifty Next 50 F&O contracts to rival BSE in derivatives. The index comprises top Nifty 100 firms, excluding Nifty 50, with substantial sector weightings in finance, capital goods, and consumer services.

What NSE declared?

On Thursday, April 18, NSE declared SEBI’s approval for trading monthly Nifty Next 50 F&O contracts, commencing on Wednesday, April 24.

“Approval from SEBI allows trading in Futures and Options contracts on it. Next 50 Index in F&O segment starting April 24, 2024,” stated NSE on April 18.

According to NSE, the exchange will provide three consecutive monthly contracts for index futures and options. Contract expiry falls on the last Friday of the month, with the previous trading day as expiry if the last Friday is a holiday. Nifty 50.

In April, NSE revealed four new indices in cash and F&O segments, starting April 8.

Today, NSE released a circular outlining a plan to distribute indices like Tata Group 25% Cap, Multicap India Manufacturing 50:30:20, 500 Multicap Infrastructure 50:30:20, and its MidSmall Healthcare through online channels.

nifty
Image: The Economic Times

On April 16, NSE revealed plans for an additional exposure margin on certain F&O stocks, effective April 26, 2024, post the April 2024 contracts’ expiry.

F&O, a derivative trading instrument, has gained significance in stock markets lately. Derivatives, in trading, derive value from underlying financial assets. In F&O trading, investors profit from price fluctuations without buying the underlying asset.

You might also be interested in: SRM Contractors’ stock makes a tepid market entry, opening with a modest 2.5% premium at ₹215.25 on the NSE

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