National Stock Exchange of India (NSE), the country's leading bourse, commenced trading in derivatives with the launch of index futures on June 12, 2000.
Nifty futures, a key trading index of India, is completing 15 years of its existence today. Launched in 2000, the Nifty-50 index futures has given about 15% annual returns in last 1,000 days, and around 12% annually since its debut.
National Stock Exchange of India (NSE), the country's leading bourse, commenced trading in derivatives with the launch of index futures on June 12, 2000. The futures contracts are based on the popular benchmark CNX Nifty Index. On day one, the index opened at 1461 and has moved nearly 5.5 times in the past 15 years to close at 8,124 on Wednesday, with a 1.3% increase from the previous close.
According to NSE, 1.4 billion contracts have been traded so far in the Nifty futures – worth Rs 3,50,000 crore.
"It has been a remarkable journey. As a pulse of the nation, Nifty index based products are now travelling to other global destinations. I am sure that Nifty will grow manifold with the growth of the Indian economy," said Chitra Ramkrishna, managing director & CEO, NSE.
A year after it introduced Nifty futures, the exchange introduced trading in index options (also based on Nifty) on June 4, 2001. NSE also became the first exchange to launch trading in options on individual securities from July 2, 2001. Futures on individual securities were introduced on November 9, 2001. At present, futures and options on individual securities are available on 158 securities stipulated by the market regulator Sebi.
Fifteen years later, the index, representing 12 key sectors of the Indian economy, has become hugely popular worldwide. Nifty-50 futures are traded on Singapore stock Exchange, Osaka Exchange and Chicago Mercantile Exchange platforms.
During its journey, the index saw the highest upside movement of about 17.7% on May 18, 2009, while it witnessed the highest drop of around 12.24% in a single day, on May 17, 2004.
Six international exchange-traded funds (ETFs) benchmarked to CNX Nifty Index are listed on various exchanges across the globe, including Deutsche Börse, Euronext Paris, Borsa Italiana and stock exchanges in London, Stockholm and Tokyo, among others.
NSE, which was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach, is India's leading stock exchange today. The exchange has brought about transparency, speed and efficiency, safety and market integrity. It played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-the-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism.
In its existence of two decades, NSE has transformed the capital market based on technology, innovation and high standards of governance and management practices. NSE's business practices, product innovation and high levels of integrity have earned it the trust of the financial market worldwide. Besides being a platform of choice for all exchange traded financial products In India, NSE's flagship index, Nifty 50, has become a benchmark as a national level economic parameter.
According to the World Federation of Exchanges's ratings, NSE is the largest exchange in the world in currency options and index options, and third-largest in cash market trade.
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