OBJECTIVES OF THE STUDY: STOCK FUTURE TIPS

STOCK FUTURE TIPS

One can articulate that Indian markets were disturbed by unsolicited feature, a mix of cash and futures trading--subsistence of the Badla scheme accompanied with process of long settlement cycles. Memorize till early 1990’s the major stock exchange BSE has bookkeeping interval of fortnight plus settlement period of another 15 days. Also memorize the sequel of crises happened during the reform period. But subsequent to market crisis of March 2001, a series of reforms have been implemented which include the abolition of Badla, the taking up of rolling settlement followed by the introduction of SSFs. As a result, at this juncture one ought to look at the latest circumstances in support of an empirical assessment of this transition.

That is, need to know what nature of influence these SSFs in fact exhibit on the financial markets is of interest to everybody, since rare investigations present for any economy. Wisdom of such empirical examination assumes importance in view of the fact that several economies retain successful markets in commodity futures, currency futures, index futures, and bond futures; SSFs are far behind compared to other derivative products. Certainly, a small number of countries posse SSFs that too have on few preferred or chosen stocks. However, to date such existence of SSFs trading is negligible due to volumes. Straight away contrast to all other, the present Indian situation is unusual due to spurt in the volumes. See figure 1 & 2 which exhibits present scenario of the growth of SSFs at NSE2. Currently the average daily trading volume of the SSFs in NSE is on an average more than twice the trading volume of the cash market. Also out of daily total trading volume of all the F&O products at NSE, SSFs alone accounts for more than 50 per cent.