What is Index Futures in Stock Market?

Live Index Futures

What is an Index? Index also called as Indices consist of a set of multiple stocks. E.g. If we talk about Nifty as an index, it consists of 50 stocks of different companies operating in different sectors. Below the elaboration of the Nifty index.

Nifty
NIFTY 50 Index is understood as the largest single financial product in India, with an ecosystem comprising of exchange-traded funds and options at the NSE in India, and futures and options abroad at the SGX. NIFTY 50 is the world’s most actively traded contract.

List of fifty companies that form a part of the NIFTY 50 Index.

Adani Ports

Asian Paints Ltd 

Axis Bank

Bajaj Auto

Bajaj Finance

Bajaj Finserv

Bharti Airtel

Bharti Infratel

BPCL

Britannia

Cipla

Coal India

Dr Reddys Labs

Eicher Motors

GAIL

Grasim

HCL Tech

HDFC

HDFC Bank

Hero Motocorp

Hindalco

HUL

ICICI Bank

IndusInd Bank

Infosys

IOC

ITC

JSW Steel

Kotak Mahindra

Larsen

M&M

Maruti Suzuki

Nestle

NTPC

ONGC

Power Grid Corp

Reliance

SBI

Sun Pharma

Tata Motors

Tata Steel

TCS

Tech Mahindra

Titan Company

UltraTech Cement

UPL

Vedanta

Wipro

Yes Bank

Zee Entertain

The info mentioned above is about Nifty as an Index, but then what is index futures? It is nothing but a futures contract being traded on the exchange. It is traded in a lot. Nifty futures index consists of 75 quantity. There are also other index exist in the market such as Bank Nifty (banking stocks), Nifty Metal, Nifty Infra, Nifty IT etc.

There are other Indices all over the world. These include Dow Jones, Nasdaq, S&P 500, Nikkei, HangSeng, etc.