Growth of Financial Derivatives Market with Special Reference to National Stock Exchange – An Analysis

Vichaara, An International Journal of Management, Volume: 4, April 2018 Number: 2

33 Pages Posted: 2 Oct 2020

Date Written: 2018

Abstract

The Derivative Market in India, like its counterparts abroad, is increasingly gaining significance. Since the time derivatives were introduced in the year 2000, their popularity has grown manifold. This can be seen from the fact that the daily turnover in the derivatives segment on the National Stock Exchange currently stands at crores, much higher than the turnover clocked in the cash markets on the same exchange. In fiscal 2016-17, the total turnover in equity cash market stood at about Rs 60.5 lakh crore, whereas the same for equity derivatives was at a high of Rs 944 lakh crore. While the cash market has grown at an annual compounded growth rate of 11 per cent since 2004-05, the same for equity derivatives is over 35 per cent. Managing Financial Risk is one of the most essential activities that every firm needs to consider.Various tools were and are used for managing financial risk and out of all, derivatives are the most widely used tool to manage financial risk.The present study focus on the evolution,business growth and trends of products which are trading at NSE in derivatives segment with the help of AAGR, CAGR, Standard Deviation, Correlation and ANOVA.

Keywords: Derivatives, Risk, AAGR, CAGR, Correlation, NSE

JEL Classification: G10, G11

Suggested Citation

Egurla, Kishan, Growth of Financial Derivatives Market with Special Reference to National Stock Exchange – An Analysis (2018). Vichaara, An International Journal of Management, Volume: 4, April 2018 Number: 2, Available at SSRN: https://ssrn.com/abstract=3675383

Kishan Egurla (Contact Author)

Osmania University ( email )

Tarnaka
Hyderabad, Andhra Pradesh 500 007
India

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