The National Stock Exchange (NSE) has received regulatory approval from SEBI to launch derivatives contracts on the Nifty India FPI 150 Index, with the launch now scheduled for August 12, 2026, as announced on July 16, 2026. This represents a significant expansion of the exchange's equity derivatives product suite, offering market participants an additional tool for hedging and portfolio diversification in the FPI segment of the Indian equity market. The exchange will offer three serial monthly index futures and three serial monthly index options contracts on the index, with cash-settled arrangements and expiry on the last Tuesday of the respective expiry month, following existing index derivatives conventions. As per The Hindu BusinessLine, this initiative aims to introduce these contracts in the equity derivatives segment, enhancing accessibility for foreign investors and complementing the existing index derivatives product suite. The launch comes as the country's largest stock exchange prepares for its long-awaited initial public offering (IPO), with the new contracts designed to provide market participants with another benchmark for trading and risk management.
The Nifty India FPI 150 Index tracks the performance of top 150 stocks selected from the Nifty 500 that ensure accessibility and investibility for foreign investors, as noted by NSE. The constituents are chosen based on six-month average foreign investible free-float market capitalisation, ensuring representation of liquid stocks with high free float. As of June 2026, financial services accounted for the largest sectoral share at 26.15%, followed by oil, gas and consumable fuels at 10.03% and healthcare at 7.51%. The index was introduced on August 16, 2025, with a base date of October 3, 2022, and base value of 1,000, rebalanced quarterly using foreign investible free-float methodology. The weight of each stock in the index is determined by its foreign investible free-float market capitalisation, making it suitable for portfolio hedging and investment strategies focused on liquid and investible Indian equities. According to The Hindu BusinessLine, Reliance Industries was the largest constituent in the index with a 6.79% weight, followed by HDFC Bank (5.31%), Bharti Airtel (4.38%), ICICI Bank (4.27%) and Infosys (2.73%) as of June 2026.
The Nifty India FPI 150 Index has delivered a one-year total return of -1.83% as of June 2026, reflecting recent market conditions in the FPI segment. However, since its base date of October 3, 2022, the index has generated a total return CAGR of 13.22%, demonstrating strong long-term performance for foreign portfolio investors. The index's composition of liquid, high free-float stocks ensures accessibility for foreign investors while maintaining focus on stocks that meet foreign investment eligibility criteria. The cash-settled derivatives contracts will expire on the last Tuesday of the expiry month, providing standardized trading conventions for market participants and maintaining the liquidity and settlement efficiency of cash-s settled instruments.
The exchange will offer three serial monthly futures and options contracts on the index, with cash-s settled arrangements and expiry on the last Tuesday of the expiry month, following existing index derivatives conventions. These contracts provide traders with medium-term exposure to the FPI segment while maintaining the liquidity and settlement efficiency of cash-s settled instruments. The launch timeline of August 12, 2026 gives market participants adequate preparation time for the new product introduction, with the contracts being introduced in the equity derivatives segment as part of NSE's efforts to expand its index derivatives offerings. According to The Hindu BusinessLine, the cash-s settled derivatives contracts will expire on the last Tuesday of the expiry month, providing standardized trading conventions for market participants and maintaining the liquidity and settlement efficiency of cash-s settled instruments.
This launch expands NSE's existing derivatives portfolio, which currently includes contracts on Nifty 50, Nifty Bank, Nifty Financial Services, Nifty Next 50 and Nifty Midcap Select. Of these, only the Nifty 50 has weekly derivatives contracts following SEBI's mandate. According to Sriram Krishnan, chief business development officer at NSE, the Nifty India FPI 150 Index represents a broad and diversified segment of the Indian equity market, comprising 150 liquid stocks across multiple segments while maintaining focus on liquidity and investibility, making it suitable for hedging and portfolio diversification purposes. The introduction of derivatives provides market participants with another benchmark for trading and risk management, as the index comprises liquid stocks that meet foreign investment eligibility criteria, particularly as the country's largest bourse prepares for its long-awaited Initial Public Offering. Additionally, NSE recently signed a Memorandum of Understanding (MoU) with the Bharat Metal Exchange to promote and develop non-ferrous metal derivatives in India, aimed at strengthening market participation and enhancing price risk management practices.
