The Hindu Business Line : Derivatives overtake cash market on NSE

FOR the first time in the two-and-half-year-old history of derivatives trading in the country, the volume in the derivatives segment of the National Stock Exchange today overtook that of the cash market.

The total volume on NSE's derivatives segment was Rs 2,123 crore, or 107 per cent of the Rs 1,981.92 crore in the cash market. However, the derivatives' volume was lower than the all-time high of Rs 3,796.79 crore touched on December 9 on the exchange.

Out of the total volume on the derivative segment today, individual stock futures volume was Rs 1,420.17 crore, stock options' volume was Rs 450.74 crore, index futures' was Rs 220 crore and index options was Rs 32.08 crore.

Mr Anil Desai, Vice-President, ICICI Securities, said, "Most of the December contracts are close to expiry, and there was some rollover to January contracts by investors which led to volumes crossing that of the cash market."

Mr Desai said since the cash market was moving in a narrow range, investors were more active in the derivatives markets. All the December contracts expire on Thursday (December 26). However, the volume recorded in the derivatives segment today was much lower than that of the past week.

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