NIFTY
WHAT IS NIFTY
The S&P CNX Nifty or more popularly the Nifty is a stock market index of the National Stock Exchange and comprises of 50 stocks that form the index.
SENSEX
WHAT IS SENSEX
While the BSE has the Sensex, the NSE has the Nifty. While the Sensex comprises only 30 top listed stocks, based on various criteria, there are 50 stocks that form part of the Nifty.
NSE : NATIONAL STOCK EXCHANGE
India
Index Services and Products Ltd. (IISL) owns NIFTY. IISL is a joint venture of
NSE and CRISIL. CRISIL is a subsidiary of Standard and Poor (S&P). And so
NIFTY is also called as S&P CNX NIFTY.
CNX Nifty has shaped up as the
largest single financial product in India, with an ecosystem comprising:
exchange traded funds (onshore and offshore), exchange-traded futures and
options (at NSE
in India and at SGX
and CME abroad), other index funds and OTC
derivatives (mostly offshore).
The CNX Nifty covers 22 sectors of
the Indian economy and offers investment
managers exposure to the Indian market in one portfolio. The CNX Nifty stocks
represents about 67.27% of the free float market capitalization of the stocks
listed at National
Stock Exchange (NSE)
as on September 30, 2012.
The CNX Nifty index is a free float
market capitalisation weighted index. The index was initially calculated on
full market capitalisation methodology. From June 26, 2009, the computation was
changed to free float methodology. The base period for the CNX Nifty index is
November 3, 1995, which marked the completion of one year of operations of NSE's
Capital Market Segment. The base value of the index has been set at 1000, and a
base capital of Rs 2.06 trillion. The CNX Nifty Index was developed by Ajay
Shah and Susan Thomas.
The CNX Nifty currently consists of the following 50
major Indian companies.
|
S.No.
|
Company
Name
|
|
01
|
ACC Ltd.
|
|
02
|
Ambuja Cements Ltd.
|
|
03
|
Asian Paints Ltd.
|
|
04
|
Axis Bank Ltd.
|
|
05
|
Bajaj Auto Ltd.
|
|
06
|
Bank of Baroda
|
|
07
|
Bharat Heavy Electricals Ltd.
|
|
08
|
Bharat Petroleum Corporation Ltd.
|
|
09
|
Bharti Airtel Ltd.
|
|
10
|
Cairn India Ltd.
|
|
11
|
Cipla Ltd.
|
|
12
|
Coal India Ltd.
|
|
13
|
DLF Ltd.
|
|
14
|
Dr. Reddy's Laboratories Ltd.
|
|
15
|
GAIL (India) Ltd.
|
|
16
|
Grasim Industries Ltd.
|
|
17
|
HCL Technologies Ltd.
|
|
18
|
HDFC Bank Ltd.
|
|
19
|
Hero MotoCorp Ltd.
|
|
20
|
Hindalco Industries Ltd.
|
|
21
|
Hindustan Unilever Ltd.
|
|
22
|
Housing Development Finance
Corporation Ltd.
|
|
23
|
I T C Ltd.
|
|
24
|
ICICI Bank Ltd.
|
|
25
|
Infosys Ltd.
|
|
26
|
Infrastructure Development Finance
Co. Ltd.
|
|
27
|
Jaiprakash Associates Ltd.
|
|
28
|
Jindal Steel & Power Ltd.
|
|
29
|
Kotak Mahindra Bank Ltd.
|
|
30
|
Larsen & Toubro Ltd.
|
|
31
|
Lupin Ltd.
|
|
32
|
Mahindra & Mahindra Ltd.
|
|
33
|
Maruti Suzuki India Ltd.
|
|
34
|
NTPC Ltd.
|
|
35
|
Oil & Natural Gas Corporation
Ltd.
|
|
36
|
Power Grid Corporation of India
Ltd.
|
|
37
|
Punjab National Bank
|
|
38
|
Ranbaxy Laboratories Ltd.
|
|
39
|
Reliance Industries Ltd.
|
|
40
|
Reliance Infrastructure Ltd.
|
|
41
|
Sesa Goa Ltd.
|
|
42
|
NMDC
|
|
43
|
State Bank of India
|
|
44
|
Sun Pharmaceutical Industries Ltd.
|
|
45
|
Tata Consultancy Services Ltd.
|
|
46
|
Tata Motors Ltd.
|
|
47
|
Tata Power Co. Ltd.
|
|
48
|
Tata Steel Ltd.
|
|
49
|
UltraTech Cement Ltd.
|
|
50
|
Indusind Bank
|
OPTIONS
S&P
CNX Nifty Options
An option
gives a person the right but not the obligation to buy or sell something. An option is a contract between two
parties wherein the buyer receives a privilege for which he pays a fee
(premium) and the seller accepts an obligation for which he receives a fee. The
premium is the price negotiated and set when the option is bought or sold. A
person who buys an option is said to
be long in the option. A person who sells (or writes) an option is said to be
short in the option.
NSE introduced trading in index options on June 4, 2001. The options contracts are European style and cash settled and are based on the popular market benchmark S&P CNX Nifty index. (Selection criteria for indices)
NSE introduced trading in index options on June 4, 2001. The options contracts are European style and cash settled and are based on the popular market benchmark S&P CNX Nifty index. (Selection criteria for indices)
Contract
Specifications
Security descriptor
The security descriptor for the S&P CNX Nifty options contracts is:
Market type : N
Instrument Type : OPTIDX
Underlying : NIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract
Instrument type represents the instrument i.e. Options on Index.
Underlying symbol denotes the underlying index, which is S&P CNX Nifty
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
The underlying index is S&P CNX NIFTY.
Trading cycle
S&P CNX Nifty options contracts have 3 consecutive monthly contracts, additionally 3 quarterly months of the cycle March / June / September / December and 5 following semi-annual months of the cycle June / December would be available, so that at any point in time there would be options contracts with atleast 3 year tenure available. On expiry of the near month contract, new contracts (monthly/quarterly/ half yearly contracts as applicable) are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract.
Expiry day
S&P CNX Nifty options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Security descriptor
The security descriptor for the S&P CNX Nifty options contracts is:
Market type : N
Instrument Type : OPTIDX
Underlying : NIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract
Instrument type represents the instrument i.e. Options on Index.
Underlying symbol denotes the underlying index, which is S&P CNX Nifty
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
The underlying index is S&P CNX NIFTY.
Trading cycle
S&P CNX Nifty options contracts have 3 consecutive monthly contracts, additionally 3 quarterly months of the cycle March / June / September / December and 5 following semi-annual months of the cycle June / December would be available, so that at any point in time there would be options contracts with atleast 3 year tenure available. On expiry of the near month contract, new contracts (monthly/quarterly/ half yearly contracts as applicable) are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract.
Expiry day
S&P CNX Nifty options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
BANKNIFTY
Options
An option gives a person the right
but not the obligation to buy or sell something. An option is a contract
between two parties wherein the buyer receives a privilege for which he pays a
fee (premium) and the seller accepts an obligation for which he receives a fee.
The premium is the price negotiated and set when the option is bought or sold.
A person who buys an option is said to be long in the option. A person who
sells (or writes) an option is said to be short in the option.
The options contracts are European style and cash settled and are based on the BANK NIFTY index. (Selection criteria for indices)
The options contracts are European style and cash settled and are based on the BANK NIFTY index. (Selection criteria for indices)
Contract Specifications
Security descriptor
The security descriptor for the BANKNIFTY options contracts is:
Market type : N
Instrument Type : OPTIDX
Underlying : BANKNIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract
Instrument type represents the instrument i.e. Options on Index.
Underlying symbol denotes the underlying index, which is BANKNIFTY
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
The underlying index is BANK NIFTY.
Trading cycle
BANKNIFTY options contracts have a maximum of 3-month trading cycle - the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Expiry day
BANKNIFTY options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Security descriptor
The security descriptor for the BANKNIFTY options contracts is:
Market type : N
Instrument Type : OPTIDX
Underlying : BANKNIFTY
Expiry date : Date of contract expiry
Option Type : CE/ PE
Strike Price: Strike price for the contract
Instrument type represents the instrument i.e. Options on Index.
Underlying symbol denotes the underlying index, which is BANKNIFTY
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
The underlying index is BANK NIFTY.
Trading cycle
BANKNIFTY options contracts have a maximum of 3-month trading cycle - the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Expiry day
BANKNIFTY options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
Options on
Individual Securities
STOCK
OPTIONS
An option gives a person the right but not the obligation to buy or
sell something. An option is a
contract between two parties wherein the buyer receives a privilege for which
he pays a fee (premium) and the seller accepts an obligation for which he
receives a fee. The premium is the price negotiated and set when the option is
bought or sold. A person who buys an option is said to be long in the option. A
person who sells (or writes) an option is said to be short in the option.
NSE became the first exchange to launch trading in options on individual securities. Trading in options on individual securities commenced from July 2, 2001. Option contracts are European style and cash settled and are available on 216 securities stipulated by the Securities & Exchange Board of India (SEBI). (Selection criteria for securities)
NSE became the first exchange to launch trading in options on individual securities. Trading in options on individual securities commenced from July 2, 2001. Option contracts are European style and cash settled and are available on 216 securities stipulated by the Securities & Exchange Board of India (SEBI). (Selection criteria for securities)
Security descriptor
The security descriptor for the options contracts is:
Market type : N
Instrument Type : OPTSTK
Underlying : Symbol of underlying security
Expiry date : Date of contract expiry
Option Type : CE / PE
Strike Price: Strike price for the contract
Instrument type represents the instrument i.e. Options on individual securities.
Underlying symbol denotes the underlying security in the Capital Market (equities) segment of the Exchange
Expiry date identifies the date of expiry of the contract
Option type identifies whether it is a call or a put option., CE - Call European, PE - Put European.
Underlying Instrument
Option contracts are available on 210 securities stipulated by the Securities & ExchangeBoard of India (SEBI). These securities are traded in the Capital Market segment of the Exchange.
Trading cycle
Options contracts have a maximum of 3-month trading cycle - the near month (one), the next month (two) and the far month (three). On expiry of the near month contract, new contracts are introduced at new strike prices for both call and put options, on the trading day following the expiry of the near month contract. The new contracts are introduced for three month duration.
Expiry day
Options contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day.
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