Hello,
The Nifty CPSE index (Central Public Sector Enterprises) will now be traded in the derivatives market via Futures and Options contracts.
It consists of 10 central public sector companies in which the Govt. Of India or President of India have more than 55% holding under promoters category. The Index was constructed to facilitate Govt. of India's initiative to disinvest some of its stake in CPSE's through ETF route.
> The Symbol for the derivative is NIFTYCPSE.
> The lot size is 250. (Contract value per lot has to be a minimum of 5 lakhs, hence if index value falls below 5 lakhs per lot, then the lot size will increase.)
> The strike price intervals is 25.
> It consists of 3 serial monthly F&O contracts and 7 serial weekly option contracts (excluding monthly expiry.) In total, it consists of 10 serial option contracts.
> It expires on the Last Thursday of the expiry month. (If the last Thursday is a holiday, then it will expire on the previous trading day).
> The index is calculated using free-float market capitalization method. The weights of the companies are capped at 25% during rebalancing.
Composition:
ONGC and Coal India are the heavy weights at 25.50% and 20.66% respectively.
Indian Oil Corp (IOC) and GAIL follow with 16.58% and 10.57% respectively.
Power Finance Corp (PFC), Rural Electrification Corp (REC), Container Corp (Concor), Bharat Electronics (BEL), Oil India (OIL) and Engineers India (Enginersin) have weights between 6.01% and 2.14%.
The Index is computed with a base date of January 1, 2009 and base value of 1000 and represents 3.95% of free-float market capitalization as on November 30, 2016.
The Index is constructed and maintained by IISL.
You will also find valuable data of Nifty CPSE in relation to the Nifty 50 including fundamental particulars, correlation, beta value, volatility and returns in the detailed circular below.
The benefits of trading in Nifty CPSE include effective hedging of portfolio and also facilitates participation in India's growth story.
On the day of its introduction, December 30, 2016 - NIFTYCPSE Future closed at 2326.
You will find the One-Pager on Derivatives on Nifty CPSE Index here.
You will find the Detailed Circular on Nifty CPSE Index here.