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History was created 15 years ago when Indo Thai Securities Ltd and Sarvin Capital recorded the first ever trade on the S&P CNX Nifty Futures contract (as it was then called) at 9.56 a.m. on June 12, 2000, at a price of ₹1,461. The lot size then was 200.
On that day, the index futures (June, July and August contracts)did a turnover of ₹2.31 crore. Open interest on the first day logged 7,400 contracts. Open interest is the number of contracts left open by market participants. This means if one buys 15 contracts of Nifty Futures and sells 10 contracts during a trading session, the volume logged in is 25 contracts and open interest is five contracts.
Participation came from six centres across the country with 65 users trading.
12% returnSince then, Nifty Futures has grown by was leaps and bounds. The index has returned about 12 per cent since inception and witnessed trading of 140 crore contracts worth ₹350 lakh crore. The index, which today represents 12 sectors of the Indian economy, is traded on the Singapore Stock Exchange, Osaka Exchange and Chicago Mercantile Exchange.
Arun Kejriwal, Founder KRIS Research, said, “F&O trading started a couple of months after the dot com bust. People were still recovering from the aftershocks and there was hesitation as this product was often confused with the existing Vyaj Badla product. It took some time to stabilise as the state of the markets did not help either.
It was only when markets turned optimistic that trading in Nifty Futures took off exponentially.”
The NSE had introduced trading on index options and stock futures a year later in 2001.
Chitra Ramkrishna, MD & CEO, NSE, said, “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.”
On May 18, 2009, the index saw the highest upside movement of about 17.7 per cent while on May 17, 2004, the index witnessed the largest single-day fall of about 12.24 per cent.
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