Stock Index Futures

Stock Index Futures are derivative contracts that allow investors to buy or sell a major stock index—such as the Nifty 50 or Bank Nifty—at a predetermined price on a specified future date. Unlike single-stock futures, these contracts are cash-settled and track the performance of an entire index rather than an individual company. Institutional investors use stock index futures for portfolio hedging, tactical asset allocation, and gaining leveraged market exposure. In India, Nifty and Bank Nifty futures traded on NSE are among the most actively traded derivatives contracts globally by open interest and volume.