National Stock Exchange on Monday said it got blessing from Securities Exchange Board of India (SEBI) to launch derivations on Nifty MidCap Select Index and will start from January 24.

“Nifty Midcap Select indicator aims to track the performance of a focused portfolio of 25 stocks within the Nifty Midcap 150 indicator. All the indicator element stocks are collectively available in derivations. The weight of the stocks is grounded on free- pier request capitalization methodology”, NSE said in a statement.

Exchange will offer futures and options with a trading cycle of 7 daily expiration contracts ( banning the yearly expiration contract) and 3 periodical yearly expiration contracts. Index options will be European style with strike interval of 50 and strike scheme of 30 – 1 – 30 (OTM-ATM-ITM), the exchange added.

“ The current vacuity of indicator derivations on the exchange is largely concentrated on either the large cap stocks or sector specific stocks. The midcap stocks regard for around 17 of request capitalization. The launch of derivations on Nifty Midcap Select indicator will give actors an fresh hedging tool to manage their portfolio threat effectively” said Vikram Limaye, MD & CEO of NSE.
The Nifty MidCap Select Index has given38.73 return in the last one time and19.4 annualised returns in the last five times. For the time 2021, the diurnal average development of midcap stocks surged 63 from a time ago to Rs 15220 crore.