NSE Waives Transaction Charges on Nifty Next 50 F&O Trades for 6 Months

In a move aimed at encouraging greater participation in Futures and Options contracts for the Nifty Next 50 Index, the National Stock Exchange (NSE) has announced a fee waiver. According to an NSE circular dated April 23, 2024, trades executed in the Futures and Options segment on Nifty Next 50 Index (NIFTYNXT50) will be exempt from charges from April 24, 2024, until October 31, 2024. This strategic initiative is designed to increase activity in Futures and Options contracts and attract a broader range of market participants.

Background and Market Performance

The NSE had previously announced the launch of Futures and Options contracts on the Nifty Next 50 Index, with trading starting from April 24, 2024. The Nifty Next 50 Index represents the next tier of companies after the Nifty 50, accounting for roughly 10% of the total traded value of all stocks on the NSE.

On April 23, 2024, the Nifty Next 50 Index closed at 67,798.55 points, marking a gain of 0.18% from its previous close of 62,683 points. The index opened at 63,068 points, hitting a high of 63,068.90 and a low of 62,703 points. Since the start of 2024, the index has risen by about 9,388 points, an impressive increase of 17.58%.

Contract Expiry Dates

The following expiry dates have been established for the Nifty Next 50 Futures and Options contracts:

Top Stocks in the Nifty Next 50 Index

Here’s a list of the top constituents in the Nifty Next 50 Index by weightage:

Conclusion

The NSE’s decision to waive fees on Nifty Next 50 Futures and Options contracts aims to boost market activity and attract new participants. With the index’s robust performance in 2024 and a diverse set of companies, the fee waiver could spark increased trading activity and potentially lead to higher liquidity in the Futures and Options segment. This initiative is an opportunity for traders to engage with the Nifty Next 50 Index with fewer cost barriers, offering a chance to explore new trading strategies and diversify portfolios. It’s worth watching how market participants respond to this move, and whether it stimulates more robust trading in the Nifty Next 50 segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.