New Delhi: NSE The leading Stock Exchange on Monday said it will launch derivatives on the index select Nifty Midcap from January 24.
The exchange announced that he had secured approval from the Effectal Market Regulator of the Indian Stock Exchange (SEBI) to launch derivatives on the index.
Index select MIDCAP Nifty aims to track the portfolio performance focused on 25 shares in the Nifty Midcap 150 index, NSE said in a statement.
All index constituent stocks are available individually in derivatives and stock weight based on free market capitalization methodology.
The National Stock Exchange (NSE) will offer futures and options with the trade cycle of seven expiration contracts (not including monthly end contracts) and the three contracts end monthly serials.
“The availability of current index derivatives in exchange is largely focused on large closing stocks or specific stock sector stocks.
MIDCAP shares contributed around 17 percent of market capitalization,” said Vikram Limaye, MD and CEO, NSE said.
The derivative launch on the index select Midcap Nifty will provide additional hedging tool participants to manage their portfolio risk effectively, he added.
The MIDCAP segment has become focused during the market rally recently with an increase in the level of participation from all investor classes and liquidity consequences.
The Index select MIDCAP Nifty has provided a return of 39 percent in the last 1 year and 19 percent of the annual return in the last 5 years which ended December 2021.