Market Beat

The National Stock Exchange of India (NSE) has announced a reduction in lot sizes for derivative contracts on three indices: Nifty 50, Nifty Financial Services, and Nifty Midcap Select. These changes will come into effect starting 26 April 2024, with varying implementation timelines for different contract types.

Reduced Lot Sizes:

* Nifty 50: 50 to 25 contracts per lot

* Nifty Financial Services: 40 to 25 contracts per lot

* Nifty Midcap Select: 75 to 50 contracts per lot

* Bank Nifty remains unchanged at 15 contracts per lot

* Nifty 50: The revision applies to new contracts starting April 26th. The first weekly and monthly expiry contracts with the reduced size will expire on May 2nd and May 30th, 2024, respectively.

* Nifty Financial Services & Nifty Midcap Select: Existing monthly contracts expiring before July 2024 are unaffected. The reduced lot size will begin with the July expiry contracts, expiring on 30 July 2024, for Nifty Financial Services and 29 July 2024, for Nifty Midcap Select. Weekly contracts of these two indices maturing after July 2024 will have the new lot size.

This move by NSE aims to increase market participation and liquidity in these derivative contracts by making them more accessible to a wider range of investors with smaller capital requirements.

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