BSE launches F&O trading on IT index; debut day turnover at Rs 148 crore

BSE on Monday launched futures and options (F&O) contracts on the BSE Focused IT Index, becoming the first exchange in India to introduce derivative products benchmarked specifically to the information technology sector. The rollout coincided with National Technology Day and underscores the growing importance of India’s technology ecosystem in capital markets.

The BSE Focused IT Index tracks 14 major Indian technology companies and represents one of the country’s most influential sectors in terms of market capitalization and foreign investor participation. The IT segment accounts for nearly 6% of the total market capitalization of companies listed on the BSE and contributes a similar share to overall foreign portfolio investments in Indian equities.

India currently has more than 250 listed IT companies, while the sector’s increasing relevance is also visible in passive investing, with 17 passive products benchmarked to IT indices.

Given the sector’s strong exposure to global demand, currency fluctuations and evolving technology trends, the newly launched derivative contracts are expected to offer investors an additional avenue for hedging, trading and portfolio risk management.

The futures and options contracts are cash-settled and available across three serial monthly expiries, with settlement scheduled on the last Thursday of each expiry month, in line with BSE’s existing derivatives framework.

The launch saw active participation on the first trading day, with 172 members contributing to a total turnover of Rs 148 crore.
Speaking on the occasion, MD & CEO Sundararaman Ramamurthy said the launch of derivatives on BSE Focused IT Index reflects BSE’s 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,” he said.BSE Information Technology index today ended 0.2% lower at 28,534 amid a wider sell-off in the domestic stock markets. While Nifty plunged 360.30 points or 1.49% to close at 23,815.85, the BSE Sensex settled at 76,015.28, down 1312.91 points or 1.70%.

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