- BSE launched futures and options contracts on the BSE Focused IT Index
- The index includes 14 leading Indian technology companies as a sector benchmark
- 172 members traded Rs 148 crore turnover on the first day of trading the product
BSE on Monday launched futures and options (F&O) contracts on the BSE Focused IT Index, becoming the only stock exchange in the country to offer derivatives on an information technology sector benchmark.
The BSE Focused IT Index comprises 14 leading Indian technology companies and is designed to provide investors with a focused benchmark for the country's information technology sector, the exchange said in a statement.
The launch coincided with National Technology Day and is aimed at offering investors an additional tool to hedge, trade and manage risks linked to the IT sector, which remains sensitive to global economic trends, currency fluctuations and rapid technological changes.
On the first day of trading, 172 members participated in the new product, generating a turnover of Rs 148 crore.
According to BSE, the IT sector accounts for around 6 per cent of the total market capitalisation of companies listed on the exchange. The sector includes more than 250 listed firms and represents nearly 6 per cent of foreign portfolio investments (FPIs) in the Indian equity market.
The exchange said 17 passive investment products in India are currently benchmarked to IT indices, underlining the sector's growing significance among institutional and retail investors.
The F&O contracts on the BSE Focused IT Index will be cash-settled and offered in three serial monthly contracts. The contracts will expire on the last Thursday of each expiry month, in line with the exchange's existing index derivatives framework.
"The launch of derivatives on BSE Focused IT Index reflects our effort to align with evolving market needs," BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy said.
"With the IT sector's global linkages, rapid technological shifts and currency sensitivities, this new derivative product will enhance risk management avenues for investors and complement our index derivatives suite," he added.
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