Bank Nifty derivative contracts remain unchanged.
Following adjustments in 54 individual derivative stocks, the National Stock Exchange (NSE) updated the lot sizes of indices on Tuesday. The Nifty lot size decreased to 25 from 50, Nifty Financial Services to 25 from 40, and Nifty Midcap Select to 50 from 75.
Yet, the Nifty Bank lot size remains at 15. NSE stated there’s no change in market lot for Nifty monthly April contracts. All contracts introduced on April 26, including weekly, monthly, quarterly, and half-yearly expiries, will adopt the revised market lot size, according to the circular. The initial weekly expiry with the revised lot size is due on May 2, and the first monthly expiry with the revised lot size is set for May 30, as mentioned in the circular.
Nifty Financial Services:
This term denotes the index monitoring the performance of financial services firms listed on the National Stock Exchange (NSE) in India.
No changes in the market lot for current monthly expiries of Nifty Financial Services expiring on April 30, May 28, and June 25. The first monthly expiry contract with revised market lot will be July 2024 expiry, set for July 30.
Clarifying, there are no changes in the market lot for weekly contracts expiring up to July 23. Additionally, all weekly contracts maturing from August 6 onward will feature revised market lots.
For the Nifty Midcap Select index, no changes in the market lot for current monthly expiries ending on April 29, May 27, and June 24. Similarly, no alterations in the market lot for weekly contracts expiring up to July 22.
Shrey Jain, Founder & CEO of SAS Online, stated that cutting Nifty’s lot size to 25 would halve margin requirements for traders. This move could enhance liquidity and decrease spreads for FinNifty and MidCPNifty, as it reduces the margin needed to establish positions.
Stocks
Last week, the NSE issued a circular revising market lot sizes for derivative contracts of 54 individual stocks out of 182 with such contracts. Lot sizes were halved for Abbott India, Adani Ports, Alkem Lab, Ambuja Cements, Aurobindo Pharma, BEL, Bharti Airtel, BHEL, Bosch, BPCL, Canara Bank, DLF, Exide Industries, HCL Technologies, HDFC Asset, Hero MotoCorp, Hindustan Copper, HAL, Vodafone Idea, Indian Hotels, IOC, Jindal Steel, JK Cement, LIC Housing Finance, L&T, Lupin, Manappuram Finance, MCX, Mahanagar Gas, NALCO, Nestle, NTPC, Oracle Fin Serv, ONGC, SAIL, SBI Life, SBI, Sun Pharma, Tata Consumer, Torrent Pharma, and Trent.
Lot sizes for six stocks — Zee Entertainment, Polycab India, Navin Fluorine, Dalmia Bharat, Bandhan Bank, and Atul — have been raised. The circular noted this adjustment will take effect from April 26 for expiries occurring in July 2024 and beyond.
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