India has raced ahead of Korea Exchange, in terms of the ratio of equity derivatives turnover to the cash market turnover, according to data by World Federation of Exchanges Forum. The derivatives to cash market ratio for India has increased to 29.6 from around 15.0 two years ago, and is way ahead of Korea, which had a ratio of 18.8 at the end of March 2018.As per the forum, March data shows that NSE cash market volume stands at USD 90,968.9 million and derivatives volume at USD 2,689,055 million dollars. Cash volumes for the Korea exchange were USD 240,760 million while derivative volume was at USD 4,529,445.1 million.A discussion paper on the development of equity derivatives had recently raised concern over the high ratio of derivatives to cash following which the Securities and Exchanges Board of India (SEBI) had proposed introduction of physical delivery for single stock futures and options in a phased manner. … [Read more...] about India’s derivatives to cash market turnover ratio at highest among world markets
Vietnam retail market size
In a move that is expected to broaden the scope of the sovereign debt market, the Reserve Bank of India (RBI) has focused on increased retail participation. The regulator asked stock exchanges to act as facilitators or aggregators of bids of their stockbrokers or other retail participants. Further, these bids are to be submitted as a single consolidated bid under the non-competitive segment of the primary auctions of State Development Loans (SDL).SDLs are bonds issued by various state governments from time to time to fund their fiscal deficit. The gap between States’ revenues and expenses is funded by borrowing from institutions such as life insurance companies, mutual funds and the employee provident fund.State debt, a large marketClose SDLs form a significant part of the government securities market in India and around Rs 27 lakh crore worth of SDLs are outstanding, as per industry estimates. According to the RBI, the Government of India bonds outstanding as on June 3 are worth … [Read more...] about RBI pushes for retail participation in state government bonds
Volatile markets have made investors see their portfolio in red. Many first time investors, who have only seen 20-30 percent returns in CY2017, are baffled and are finding it difficult to tread the market. Anxiety and lack of confidence has made many see their losses on trading positions amplify. In such a situation here are a few mistakes one must avoid.Anchoring biasThis is a behavioural issue with most naive investors. “Many traders believe that market won’t go below a particular level or the benchmark index will respect 200 day moving average without understanding the reason behind the fall,” points out Dinesh Rohira, founder and CEO of 5nance.com. The market has its own reasons to go down and unless you understand them there is no point believing such market talk, he adds.Close Many investors look at a stock hitting 52 week low and believe that the stock is cheap. However do not get anchored to such levels. When you buy a stock at 52 week low, then … [Read more...] about Five mistakes you must avoid while trading in downward trending markets
The first thing you notice about Jeff Bezos is how he strides into a room. advertisement advertisement A surprisingly diminutive figure, clad in blue jeans and a blue pinstripe button-down, Bezos flings open the door with an audible whoosh and instantly commands the space with his explosive voice, boisterous manner, and a look of total confidence. “How are you?” he booms, in a way that makes it sound like both a question and a high-decibel announcement. Each of the dozen buildings on Amazon’s Seattle campus is named for a milestone in the company’s history–Wainwright, for instance, honors its first customer. Bezos and I meet in a six-floor structure known as Day One North. The name means far more than the fact that Amazon, like every company in the universe, opened on a certain date (in this case, it’s July 16, 1995). No, Day One is a central motivating idea for Bezos, who has been reminding the public since his first letter to shareholders … [Read more...] about AmazonFresh Is Jeff Bezos’ Last Mile Quest For Total Retail Domination
Bond investors have been hit hard over the past one-and-a-half year. For those in fixed deposits, the interest rates have been low and bond fund investors have been worried due to tepid returns on account of rising bond yields. While ICRA predicts record retail bond issuance, experts ask investors to be selective in their fixed income investments to enhance risk adjusted returns.“Our preferred strategy remains corporate credit, with exposure to both accrual and credit opportunity strategies,” Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, wrote in a recent investment strategy note. The note mentions slight preference for bonds on valuation concerns over stocks.Why are investors worried?Investors saw the 10-year benchmark bond yield move up to 7.83 percent from a low of 6.18 percent recorded on December 7, 2016. Interest rates on bank fixed deposits too have started climbing up. On May 28, State Bank of India, India's largest public … [Read more...] about Should investors look at retail bond issuances now?