Index Futures:

Index Futures are future contracts on which the underlying asset is an index like equity indices like the Sensex or Nifty. For trading convenience, these contracts have been standardised as far as market lot, minimum contract value etc are concerned.

In the Indian Equity market context, two equity index or stock index futures are being traded and they are the index futures on the Sensex(BSE 30) and index futures on S&P CNX Nifty of the National Stock Exchange. Stock Futures on the Nifty started trading on 12 June, 2000 is the first derivative instrument in the Indian equity market which was followed by stock index futures on the Sensex.