The National Stock Exchange said it is launching derivatives contracts on the Nifty Financial Services index. This will be the third equity index to have futures and options (F&O) contracts. Currently, NSE offers derivatives contracts for the benchmark Nifty 50 and the Bank Nifty . The Nifty Financial Services comprises 20 stocks from banks, NBFC and insurance sectors. Top weights are HDFC Bank, HDFC, ICICI Bank and Kotak Mahindra Bank. Given the high weightage of banking stocks, the Nifty Financial Services has a correlation of 98 per cent with the Nifty Bank index. The Nifty Financial Services has delivered annualised returns of 15 per cent in the last five years, NSE said.