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Nifty 50 Index Silver Jubilee: 15x growth in 25 years! Annualized returns of 11.2%

The Index, which represents the 50 large capitalized and liquid stocks across 13 sectors, has grown 15 times in 25 years, delivering annualized returns over 25 years of 11.2%.

India on Wednesday celebrated Silver Jubilee of Nifty 50 Index and 20 Years of Derivatives in Indian Capital Markets. The Nifty 50 Index was launched on April 22, 1996 and has completed 25 successful years.

Nifty 50 Index was the first underlying benchmark on which the first Exchange Traded Fund (ETF) was launched in India and was also the first Index in NSE’s derivatives market. As on Nov 30, 2021, Assets Under Management (AUM) of passive products tracking Nifty 50 index were USD 25 billion.

NSE commenced trading in derivatives with the launch of Index Futures benchmarked to Nifty 50 Index on June 12, 2000 in the equity derivatives segment. This was followed by the introduction of trading in Index Options (also based on Nifty 50 Index) on June 4, 2001, Options on Individual Securities from July 2, 2001 and Futures on Individual Securities from November 9, 2001.

"NSE has been the largest derivatives exchange globally for two consecutive years in 2019 and 2020 and the Index options contract on the Nifty 50 Index was the largest traded contract globally for multiple years," a press statement said.

"The equity derivatives market has provided an effective risk management framework for investors and has also propelled the growth of the underlying cash equity segment. In the last 10 years, volumes in the cash equity segment of stocks available in derivatives have increased by 5.5 times in line with single stock derivatives which have increased 5.4 times. Availability of derivatives is one of the criteria used by various investors, particularly institutional investors for the basis of their investment in a security or an asset class in a jurisdiction," it added.

Who said what?

Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution & Textiles was the Chief Guest for this momentous occasion. Piyush Goyal said: My best wishes to National Stock Exchange on the Silver Jubilee of Nifty 50 Index and 20 years of launching Derivatives.

Ajay Tyagi, SEBI Chairman said: “NSE has made many important contributions over the years for the development of Indian Capital Markets. It has achieved global stature and made a mark world-wide, by being the largest derivative exchange globally for two consecutive years in a row - in 2019 and 2020. I urge the exchange to continue its endeavour to be innovative, bring in best global practices to and further build trust of investors and issuers in Indian Capital Markets.”

Vikram Limaye, MD & CEO, NSE said: “On behalf of National Stock Exchange, I would like to express my gratitude to the Government of India, Securities Exchange Board of India and the Reserve Bank of India along with all the stakeholders for their support over the last 25 plus years. As India emerges out of the ongoing pandemic, NSE shall continue to focus on providing a robust platform for raising capital and providing effective products for risk management. As a frontline regulator, NSE will continue to focus on disciplined market development and what is in the best interests of investors and issuers, and in further strengthening trust in markets.”

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