Latest News | NSE to Launch Derivatives on Mid-cap Stocks Index from Jan 24

New Delhi, Jan 10 (PTI) Leading stock exchange NSE 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.

Also Read | COVID-19 in India: 5-10% Coronavirus Cases Needed Hospitalisation So Far but Situation May Change Rapidly, Says Centre.

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

Also Read | COVID-19 in Mumbai: BMC Must Ensure Citizens Are Safe From Omicron Variant, Says Bombay High Court.

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, NSE 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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)