The new offering will include futures and options contracts, settling in cash on the last Friday of their expiry month. The Nifty Next 50 index tracks the performance of the next 50 largest companies in the Nifty 100 after excluding those in the Nifty 50. This provides investors with exposure to a segment representing around 18% of the total market capitalisation of NSE-listed stocks. As of March 2024, the index has a strong showing from the financial services sector (23.76% weight), followed by capital goods (11.91%) and consumer services (11.57%).

"The introduction of derivatives on the Nifty Next 50 index complements our existing product suite," said Sriram Krishnan, chief business development officer at NSE. "This index bridges the gap between the Nifty 50, which comprises the top large-cap stocks, and the Nifty Midcap Select index, focusing on leading mid-sized companies."

This launch is part of NSE's continued efforts to provide a wider range of investment products to market participants. The Nifty Next 50 derivatives are expected to attract interest from traders seeking exposure to the growth potential of these companies.