Introduction of F&O contracts on Nifty Midcap Choose Index – #5 by…

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NSE might be introducing Futures and Choices contracts on the Nifty Midcap Choose Index w.e.f. January 24, 2022. Nifty Midcap Choose index goals to trace the efficiency of the targeted portfolio of 25 shares inside the Nifty Midcap 150 index.

The current portfolio of the index includes the following companies:

Sr. No Company Name Symbol
1 AU Small Finance Bank Ltd. AUBANK
2 Ashok Leyland Ltd. ASHOKLEY
3 Balkrishna Industries Ltd. BALKRISIND
4 Bharat Electronics Ltd. BEL
5 Bharat Forge Ltd. BHARATFORG
6 Container Corporation of India Ltd. CONCOR
7 Federal Bank Ltd. FEDERALBNK
8 Godrej Properties Ltd. GODREJPROP
9 Gujarat Gas Ltd. GUJGASLTD
10 IDFC First Bank Ltd. IDFCFIRSTB
11 LIC Housing Finance Ltd. LICHSGFIN
12 MRF Ltd. MRF
13 Mahindra & Mahindra Financial Services Ltd. M&MFIN
14 Max Financial Services Ltd. MFSL
15 Page Industries Ltd. PAGEIND
16 Petronet LNG Ltd. PETRONET
17 REC Ltd. RECLTD
18 SRF Ltd. SRF
19 Shriram Transport Finance Co. Ltd. SRTRANSFIN
20 TVS Motor Company Ltd. TVSMOTOR
21 Tata Power Co. Ltd. TATAPOWER
22 The Ramco Cements Ltd. RAMCOCEM
23 Trent Ltd. TRENT
24 Voltas Ltd. VOLTAS
25 Zee Entertainment Enterprises Ltd. ZEEL

Top constituents in the index

Company’s Name Weight(%)
Tata Power Co. Ltd. 7.52
SRF Ltd. 7.07
Zee Entertainment Enterprises Ltd. 5.95
Voltas Ltd. 5.68
Bharat Electronics Ltd. 5.04
Shriram Transport Finance Co. Ltd. 4.90
Trent Ltd. 4.79
Page Industries Ltd. 4.71
AU Small Finance Bank Ltd. 4.58
Godrej Properties Ltd. 4.39

Sector representation

Sector Weight(%)
FINANCIAL SERVICES 26.63
AUTOMOBILE 13.21
INDUSTRIAL MANUFACTURING 8.63
POWER 7.52
CHEMICALS 7.07
MEDIA, ENTERTAINMENT & 5.95
CONSUMER GOODS 5.68
OIL & GAS 5.46
CONSUMER SERVICES 4.79
TEXTILES 4.71
CONSTRUCTION 4.39
SERVICES 3.39
CEMENT & CEMENT PRODUCTS 2.57
Statistics 1 Year 5 Years Since Inception
Std. Deviation 22.43 22.59 27.05
Beta (NIFTY 50) 1.10 1.03 1.02
Correlation (NIFTY 50) 0.76 0.83 0.84

Fundamentals

P/E P/B Dividend Yield
26.8 3.21 0.94

Index performance as of December 31, 2021



Contract specifications of the Nifty Midcap Select Index

Particulars Futures Options
Symbol MIDCPNIFTY MIDCPNIFTY
Instrument FUTIDX OPTIDX
Tick Size Re 0.05 Re 0.05
Lot Size 75 75
Trading Cycle 7 serial weekly contracts (excluding monthly expiry) and 3 serial monthly contracts
Expiry Day Last Tuesday of the expiry month for the monthly contracts and Tuesday of the expiry week for the weekly expiry contracts, excluding the expiry week of the monthly contracts. If Tuesday is a trading holiday, the expiry day will be on the previous trading day.
Strike Scheme 30-1-30
Strike Interval 50
Option Type Call European (CE) and Put European (PE)
Settlement Cash Settled Cash Settled
Daily Settlement Price Closing price of the futures contract. If illiquid, then theoretical price will be considered
Final Settlement Price Index closing value on the last trading day Index closing value on the last trading day
Quantity Freeze 5500 5500
Price Band Operating range of 10% of the base price A contract specific price range based on its delta value is computed and updated on a daily basis
Spread Contracts M1-M2; M1-M3; M2-M3 / W1-W2; W1-W3; W1-W4; W2-W3; W2- W4; W2-W5; W3-W4; W3-W5; W3-W6

You can check the announcement from the exchange here.



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