After effecting changes in 54 individual derivative stocks, the National Stock Exchange (NSE) on Tuesday revised the lot sizes of indices too. The Nifty lot size has been cut to 25 from the current 50 while Nifty Financial Services has been reduced to 25 from 40 and Nifty Midcap Select to 50 from 75.

However, the Nifty Bank lot size will remain at 15.

There is no revision in market lot of Nifty monthly expiry of April contracts, said NSE. All contracts i.e. weekly, monthly, quarterly, and half yearly expires that will be introduced on April 26 will be with the revised market lot size, the circular added.

The first weekly expiry contract with revised lot size will expire on May 2 and the first monthly expiry contract with revised lot size will expire on May 30, the circular further added.

Nifty Financial Services

For Nifty Financial Services, there is no revision in the market lot of existing monthly expiries that are expiring on April 30, May 28 and June 25. The first monthly expiry contract to have revised market lot will be July 2024 expiry, which is expiring on July 30.

There is no revision in market lot of weekly contracts with expiry date up to July 23, it clarified and added all weekly contracts with maturities from August 6, onwards will have revised market lots.

Also read: Broker’s call: Latent View Analytics (Buy)

In case of Nifty Midcap Select index, there is no revision in the market lot of existing monthly expiries, expiring on April 29, May 27 and June 24. There is no revision in market lot of weekly contracts with expiry date up to July 22, it said.

Shrey Jain, Founder & CEO, SAS Online, said reduction in lot size of Nifty to 25 will reduce margin requirement for traders by 50 per cent. FinNifty and MidCPNifty, this may help push up liquidity and lower the spreads as now less margin would be required to build positions.

Stocks

Last week, the NSE had issued a circular announcing revisions in the market lot sizes of derivative contracts for 54 individual stocks among the 182 stocks with such contracts. The lot size has been halved for Abbott India, Adani Ports, Alkem Lab, Ambuja Cements, Aurobindo Pharma, BEL, Bharti Airtel, BHEL, Bosch, BPCL, Canara Bank, DLF, Exide Industries, HCL Technologies, HDFC Asset, Hero MotoCorp, Hindustan Copper, HAL, Vodafone Idea, Indian Hotels, IOC, Jindal Steel, JK Cement, LIC Housing Finance, L&T, Lupin, Manappuram Finance, MCX, Mahanagar Gas, NALCO, Nestle, NTPC, Oracle Fin Serv, ONGC, SAIL, SBI Life, SBI, Sun Pharma, Tata Consumer, Torrent Pharma and Trent.

The lot size of six stocks — Zee Entertainment, Polycab India, Navin Fluorine, Dalmia Bharat, Bandhan Bank, and Atul — has been increased. However, the circular further said the adjustment will be effective from April 26 for expiries in July 2024 and beyond.

Related Topics
comment COMMENT NOW