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NSE launches derivatives on Nifty Financial Services Index

The National Stock Exchange (NSE) on Monday announced the launch of derivatives on the Nifty Financial Services Index.

NSE in its statement said, “It has recorded 1.4 lakh contracts on the first day, that being traded for Rs 511 crores with the open interest of 28,219 contracts at the end of the day.”

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“Over 311 trading members across the country participated in the index derivatives. The trading members involved in the execution of the first trades are East India Securities Ltd., Marwadi Shares & Finance Limited, and Zerodha Broking Limited,” the statement said. 

“The near week futures contract last traded price was at a premium of 37 basis points to the closing Nifty Financial Services index value while the near-monthly futures contract last traded price was at a premium of 49 basis points to the Nifty Financial Services closing index value,” it added.

Speaking on the launch, Mr. Vikram Limaye, MD & CEO, NSE said ”Financial services is an important sector in India’s economy. The Nifty Financial Services Index reflects the behavior and performance of the Indian financial services sector which includes banks, financial institutions, housing finance, insurance companies, and other financial services companies. This is the first-time NSE has introduced weekly futures for the stock index derivatives.” 

“The index derivatives will provide a new risk management tool to investors with exposure to the financial services sector. The Nifty Financial Services index has a 94% correlation and a Beta value of 1.2 with the Nifty 50 Index,” Vikram added.

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