Mumbai – BSE Ltd., Asia’s oldest and India’s premier stock exchange, today launched Futures and Options (F&O) trading on the BSE Focused IT Index, a sectoral benchmark comprising 14 leading technology companies of India. The launch of the derivative contracts on the BSE Focused IT Index coincides with National Technology Day, highlighting India’s technology capabilities and its role in driving market innovation.
The new derivative contracts are unique as it is the only index derivatives in India with benchmark representing the Information Technology (IT) sector.
The IT sector is one of the largest by market capitalization, accounting for approximately 6%1 of all listed companies on BSE. With over 250 listed IT companies, the sector also represents nearly 6% of Foreign Portfolio Investments (FPIs)2 in the Indian market.
The growing prominence of the IT sector is further reflected in the passive investment space, with 17 passive products currently benchmarked to IT indices in India. Given its strong export orientation, the sector remains highly sensitive to global economic trends, currency movements, and technological shifts. In this context, derivatives on the BSE Focused IT Index provide investors with an effective instrument for hedging, trading, and managing portfolio risk.
The Futures and Options contracts on the BSE Focused IT Index are cash-settled and available in three serial monthly contracts. The contracts expire on the last Thursday of the expiry month, in line with BSE’ existing index derivatives framework. The first day of the launch witnessed participation from 172 members, with a total turnover of Rs 148 crore.
Speaking on the occasion, Shri Sundararaman Ramamurthy, MD & CEO, BSE, said, “The launch of derivatives on BSE Focused IT Index reflects our effort to align with the evolving market needs. With the IT sector’s global linkages, rapid technological shifts, and currency sensitivities, this new derivative product will complement our index derivatives suite while enhancing risk management avenues for investors. We thank all market participants for their continued support and engagement, which enables us to introduce products that deepen and strengthen India’s capital market ecosystem.”
