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NSE cuts Nifty50, Nifty Financial Services F&O lot sizes to 25 & Nifty midcap to 50.

NSE to launch derivatives on Nifty Next 50 index from April 24

Activities complement to everything, and they have either a positive or negative effect on following steps in chain. Likewise, in an economy, higher employment reflects higher manufacturing and service data, which leads to rising GDP numbers, which leads to a higher stock market. The effect can sometimes be exacerbated or lessened, depending on the moment of discounting. A higher stock market, if seen from a layman's perspective, is always good, but in the stock market, where most traders are in the futures and option (F&O) segment, a rising stock market comes with a higher margin requirement. So in order to reduce the effect of volatility, increase volume, and increase the participation of retail investors, it is believed that the NSE reduces the lot size of the index or individual security.

Recently, in a major development for stock market investors, the National Stock Exchange of India (NSE) announced a reduction in the market lot of derivative contracts of three indices namely; Nifty 50, Nifty Financial Services, and Nifty Midcap Select. The move is part of the periodic revision of lot sizes for derivatives contracts.

Sr. No. Underlying Index Symbol Present market lot Revised market lot
1 Nifty 50 NIFTY 50 25
2 NIFTY FINANCIAL SERVICES FINNIFTY 40 25
3 NIFTY MIDCAP SELECT MIDCPNIFTY 75 50

 

For NIFTY 50 index derivatives:

Exchange has made no revision in market lot of monthly expiry contract, which is on April 25, 2024 but all new contracts generated from end of the day of April 25, 2024, and available for trading from April 26, 2024, onwards will be with the revised market lot size.

The first weekly expiry contract with revised lot size will expire on May 2, 2024 and first monthly expiry contract with revised lot size will expire on May 30, 2024

For NIFTY FINANCIAL SERVICES index derivatives:

Exchange has made no revision in lot size of existing monthly expiries of Fin Nifty Index, expiring on April 30, 2024, May 28, 2024, and June 25, 2024. According to the circular, the first monthly expiry contract to have revised market lot will be July 2024 expiry, expiring on July 30, 2024. However, there is no revision in market lot of weekly contracts with expiry date up to July 23, 2024. All Weekly Contracts with maturities from August 6, 2024 onwards will have revised market lots.

For NIFTY MIDCAP SELECT index derivatives:

Exchange has made no revision in lot size of existing monthly expiries, expiring on April 29, 2024, May 27, 2024, and June 24, 2024. However, the first monthly expiry that will have revised market lot will be July 29, 2024. For weekly contract, expiry date of August 5, 2024 onwards will have revised market lots.

Exchange has made no change in the Lot size of Bank nifty contract. The lot size remain same at 15.

Sr. No. Underlying Index Symbol Present market lot
1 Nifty Bank BANKNIFTY 15

 

Week earlier, NSE has announced revisions in market lot sizes for 54 individual stocks with derivative contracts, halving the lot size for several companies. The adjustment will be effective from April 26 for expiries in July 2024 and beyond. The lot size has also been increased for six stocks, Zee Entertainment, Polycab India, Navin Fluorine, Dalmia Bharat, Bandhan Bank, and Atul.

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