NSE Nifty Next 50 to be launched today

The National Stock Exchange of India (NSE) will launch derivatives contracts on the Nifty Next 50 Index (NIFTYNXT50) from Wednesday. Securities and Exchange Board of India (SEBI) has approved derivatives on the Nifty Next 50 Index on NSE.

NSE is the world’s No. 1 derivatives exchange in the year 2023 based on contracts traded and will offer three serial monthly index futures and index options contract cycles.

According to a study by SEBI (Security and Exchange Board of India), 9 out of 10 individual traders lost money in the Future & Options segment of derivatives in 2022, with an average loss of Rs1.1 lakh.

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It was found that 90% of active traders lost an average of Rs1.25 lakh.

The Nifty Next 50 index was introduced on January 1, 1997, with the base date and base value being November 03, 1996, and 1000 respectively. The Nifty Next 50 index has delivered annualized total returns of 22.06% in the last 3 years and 17.51% over last 5 years as of March 2024. The index is benchmarked to 7 Exchanges traded funds (ETFs) with assets under management above Rs 9,282 crores (end of March 2023).

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The market capitalization (full) of index constituents stands at Rs 70 trillion representing about 18% of total market capital of the stocks listed on NSE as on end of March 2024. The free float market capital used for investible weight factors stands at about Rs 22.5 trillion.

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