BSE Introduces F&O Trading On Focused IT Index

By Kotak News Desk
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12 May 2026 at 10:54 AM IST
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Market News
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4m

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Summary

BSE has launched futures and options contracts on the BSE Focused IT Index. The new product is aimed at helping investors hedge and trade technology sector risks more efficiently.

The Bombay Stock Exchange (BSE) has rolled out futures and options (F&O) contracts linked to its Focused IT Index, becoming the first stock exchange in India to introduce derivatives tied specifically to an information technology (IT) benchmark.

The launch was announced on Monday and comes at a time when investor interest in sector-based products continues to rise.

New Product Linked To IT Sector Stocks

The BSE Focused IT Index tracks 14 major technology companies listed in India and is aimed at giving traders and investors exposure to the country’s IT sector through derivative contracts.

According to the exchange, the product has been introduced to help market participants hedge risks and take positions linked to movements in technology stocks.

The IT sector remains closely tied to global demand trends, currency movements, and spending by overseas clients, making it one of the more actively tracked sectors in the market.

Strong Participation On Day One

BSE said around 172 trading members participated in the product on the first day itself.

The newly launched contracts generated turnover worth nearly ₹148 crore during the opening session.

The exchange added that the contracts will be cash-settled and available in three monthly expiry series. Expiry will continue to take place on the last Thursday of every month, similar to other index derivative products.

IT Sector Holds Key Weight In Markets

According to BSE, technology companies account for nearly 6% of the total market capitalisation of firms listed on the exchange.

The sector also has a strong presence in foreign portfolio investor holdings and currently includes more than 250 listed companies.

BSE further noted that several passive investment products in India are already benchmarked against IT-focused indices, reflecting growing investor interest in the segment.

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Exchange Commentary

BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy said the launch was aimed at expanding the exchange’s derivatives offerings in line with changing market requirements.

He added that the IT sector’s exposure to global business cycles and currency fluctuations makes risk management products increasingly relevant for investors and traders.

Sources:

NDTV Profit

The Economic Times

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