Mumbai: BSE Ltd., Asia’s oldest stock exchange and one of India’s leading capital market institutions, has launched Futures & Options (F&O) trading on the BSE Focused IT Index, a sectoral benchmark that tracks 14 major technology companies in India.
The launch coincides with National Technology Day and reflects the growing importance of India’s technology sector in shaping market innovation and investment trends. The newly introduced contracts are significant as they represent India’s only index derivatives product specifically benchmarked to the Information Technology (IT) sector.
India’s IT sector remains one of the largest contributors to the stock market by market capitalization, accounting for nearly 6 percent of all listed companies on the BSE. The sector includes more than 250 listed IT firms and also attracts close to 6 percent of Foreign Portfolio Investments (FPIs) in the Indian equity market.
The rising influence of the sector is also visible in the passive investment segment, where 17 passive investment products are currently benchmarked to IT indices in India. Given the industry’s strong dependence on exports, the sector is highly sensitive to global economic conditions, currency fluctuations, and rapid technological developments.
Market experts believe the introduction of derivatives on the BSE Focused IT Index will provide investors with an efficient tool for hedging, trading, and managing portfolio risks linked to the technology sector.
The Futures and Options contracts are cash-settled and available in three serial monthly contracts. As per BSE’s existing derivatives framework, the contracts will expire on the last Thursday of the expiry month. On the very first day of trading, the platform witnessed participation from 172 market members and recorded a turnover of approximately ₹148 crore.
Speaking on the launch, Sundararaman Ramamurthy, MD & CEO of BSE, said the introduction of derivatives on the Focused IT Index aligns with the evolving needs of the market. He noted that with the IT sector’s global exposure, currency sensitivities, and rapidly changing technology landscape, the new product will strengthen BSE’s derivatives offerings while creating additional risk management opportunities for investors.
He also thanked market participants for their continued support, stating that such engagement enables BSE to introduce innovative products that deepen and strengthen India’s capital market ecosystem.
