Nifty futures are derivative contracts that allow traders to speculate on the future price of the Nifty 50 index, a benchmark index of the 50 largest stocks listed on the National Stock Exchange of India. Nifty futures are traded on the NSE’s Futures & Options (F&O) segment.
Nifty futures are important because they provide a way to hedge against risk and to speculate on the direction of the stock market. They can also be used to create arbitrage opportunities. Nifty futures have been traded since 2000 and have become one of the most popular derivative contracts in India.