Close this search box.

NSE to launch derivatives on mid-cap stocks index from Jan 24 – Business Standard

Leading stock exchange on Monday said it will launch derivatives on the Nifty Midcap Select Index from January 24.

The exchange announced that it has secured approval from market regulator Securities Exchange Board of India (Sebi) to launch derivatives on the index.

Nifty Midcap Select Index aims to track the performance of a focused portfolio of 25 stocks within the Nifty Midcap 150 index, said in a statement.

All the index constituent stocks are individually available in derivatives and the weight of the stocks is based on free-float market capitalisation methodology.

The National Stock Exchange (NSE) will offer futures and options with trading cycle of seven weekly expiration contracts (excluding the monthly expiration contract) and three serial monthly expiration contracts.

“The current availability of index derivatives on the exchange is largely focused on either the large cap stocks or sector specific stocks. The midcap stocks account for around 17 per cent of market capitalization,” Vikram Limaye, MD and CEO, said.

The launch of derivatives on Nifty Midcap Select Index will provide participants an additional hedging tool to manage their portfolio risk effectively, he added.

The midcap segment has come into focus during the recent market rally with improved participation levels from across investor classes and consequent liquidity.

Nifty Midcap Select Index has delivered returns of 39 per cent in the last 1 year and 19 per cent annualised returns in the last 5 years ending December 2021.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor