NSE has introduced F&O contracts including weekly options on Nifty Financial Services index - FINNIFTY that covers the top banking, insurance, housing finance, NBFC and other financial services companies. Trading in these contracts will start from Monday 11th, 2021.
The symbol for the Nifty Financial Services (FINNFITY) contracts and the index on Kite is FINNIFTY.
For all of us trading Banknifty F&O, this index offers an exciting mix extending to the whole BFSI sector and not just banks.
Index constituents
Company
Industry
Weight%
HDFC Bank
Banks
27.13
HDFC
Housing Finance
17.51
ICICI
Banks
14.14
Kotak
Banks
12.1
Axis
Banks
6.46
Bajaj Finance
NBFC
5.64
SBI
Banks
4.06
Bajaj Finserv
Insurance
2.29
HDFC Insurance
Insurance
2.21
SBI Life Insurance
Insurance
1.43
ICICI Lombard General Insurance
Insurance
1.37
Shriram Transport Finance
NBFC
0.87
ICICI Prudential Life Insurance
Insurance
0.74
Piramal
Other Financial Services
0.68
Bajaj Holdings & Investments
NBFC
0.66
Cholamandalam Investment & Finance
NBFC
0.66
HDFC AMC
Other Financial Services
0.59
Power Finance Corporation
Financia Institution
0.54
REC
Financia Institution
0.49
Mahindra and Mahindra Financial Service
NBFC
0.44
Sectoral representation
Nifty Financial Services
Nifty 50
Nifty 500
Nifty Bank
Banks
63.1
26.5
20.3
100
Housing Finance Companies
18.5
7.5
5.6
0
NBFCs
8.1
2.3
3
0
Insurance Companies
8
2.5
2.5
0
Other Financial Services
1.3
0
1.4
0
Financal Institutions
1.1
0
0.3
0
Total Financial Services Exposure
100
38.7
33.2
0
Nifty Financial Services is a far more diversified index than Bank Nifty.
Risk and return measure comparison of the indices.
CAGR returns
Annualised Volatility
Return-Risk Ratio
Period
Financial
Nifty
Nifty
Nifty
Financial
Nifty
Nifty
Nifty
Financial
Nifty
Nifty
Nifty
Services
50
Bank
500
Services
50
Bank
500
Services
50
Bank
500
Since Inception
18.7%
13.9%
16.9%
13.9%
29.3%
22.9%
30.5%
22.2%
0.64
0.61
0.56
0.63
15 years
16.9%
12.6%
14.9%
12.1%
29.3%
22.9%
30.2%
22.1%
0.58
0.55
0.49
0.55
10 years
13.3%
9.9%
11.1%
10.0%
23.6%
17.5%
24.9%
17.0%
0.57
0.56
0.45
0.59
7 years
19.0%
13.4%
16.3%
14.2%
22.8%
17.2%
24.0%
17.0%
0.83
0.78
0.68
0.84
5 years
17.3%
13.3%
13.7%
12.6%
23.7%
18.2%
24.8%
17.7%
0.73
0.73
0.55
0.71
3 years
13.6%
11.2%
7.3%
7.8%
27.8%
21.1%
28.9%
20.3%
0.49
0.53
0.25
0.38
1 years
4.1%
15.7%
-2.6%
17.4%
41.2%
31.3%
43.1%
29.5%
0.10
0.50
-0.06
0.59
6 months
43.5%
36.0%
46.6%
36.1%
24.0%
15.5%
27.5%
15.0%
1.81
2.32
1.69
2.40
3 months
42.3%
24.2%
46.0%
23.0%
24.2%
14.4%
27.1%
13.8%
1.75
1.67
1.70
1.67
Nifty Financial Services beta and correlations with Nifty 50 Index, Nifty Bank and Nifty 500 Index.
Beta relative to Nifty Bank
Correlation with Nifty
Services
Nifty 50
Nifty Bank
Nifty 500
Services
Nifty 50
Nifty Bank
Nifty 500
Since Inception
0.94
0.66
1
0.64
0.98
0.88
1
0.88
15 years
0.95
0.66
1
0.64
0.98
0.88
1
0.88
10 years
0.92
0.63
1
0.61
0.97
0.89
1
0.89
7 years
0.92
0.64
1
0.63
0.97
0.89
1
0.88
5 years
0.93
0.66
1
0.64
0.97
0.9
1
0.89
3 years
0.93
0.66
1
0.63
0.97
0.91
1
0.9
1 year
0.94
0.67
1
0.62
0.98
0.92
1
0.91
6 months
0.84
0.47
1
0.44
0.97
0.84
1
0.81
3 months
0.86
0.45
1
0.4
0.96
0.84
1
0.79
Contract specifications
Particulars
Futures
Options
Symbol
FINNIFTY
FINNIFTY
Instrument
FUTIDX
OPTIDX
Tick Size (Price Steps)
Re 0.05
Re 0.05
Contract Size (Lot Size)
40
40
Trading Cycle
7 serial weekly excluding the monthly expiry and 3 serial monthly Contracts.
Expiry Day
Last Thursday of the expiry month for the monthly contracts and Thursday of the expiring week for weekly expiry contracts excluding the expiry week of monthly contract. If the Thursday is a trading holiday, then the expiry day is the previous trading day.
Strike Scheme
-
30-1-30
Strike Interval
-
100
Option Type
-
Call European (CE) and Put European (PE)
Settlement
Cash Settled
Cash Settled
Daily Settlement Price
Last half hour VWAP of futures. In the absence of trading in the last half an hour, the theoretical price would be considered.
-
Final Settlement Price
Index closing value on the last trading day
Index closing value on the last trading day
Quantity Freeze
5001
5001
Price Band
Operating range of 10% of the base price
A contract specific price range based on its delta value is computed and updated on a daily basis
Hi Rahul, the F&O based on Nifty Financial services will be available for trading from January 11, 2021. You will be able to see the contracts on Kite from then onwards, until then you can track the Nifty Financial Services Index (Symbol: NIFTY FIN SERVICE) to track price movements.
@ShubhS9@siva-reddy@nithin why all index are expiring in same day as Thursday , its no useful for traders as like me . if its expiring in different day our expiry day trading profit will improve , expiry trading in different days will boost liquidity and exchange and brokers and traders all will get benefit , all index are expiraing in same day we cannot trade in all index its not possible , so only before IT index get out from option trading because of no liquidity , NSE and BROKERS want to give suggestion to SEBI index want to expire in different days in weekly basis
Didn’t understood your reason, also same expiry for all indices on same exchange is a norm across the globe, I personally don’t know how having different expiry day for nifty and banknifty will help anyone, can you explain a bit more if possible.
Copy of the white paper shared by NSE on the Financial Services index with details on the weightage, stock selection, interesting comparisons on returns, volatility and R-R ratio with NIfty 50, Bank Nifty, etc.
