Markets to Lose Fizz ; Volumes in the Derivatives Segment Are Expected to Dry Up with the Manifold Increase in Lot Sizes of Contracts.

Summary

---

The Indian stock market seems to have come under the spell of the Ides of March. Whatever little fizz there was left in the market is expected to evaporate with the revision in the contract sizes in the derivatives segment.

The average number of shares in a single contract has increased by three times from March, as per the Securities and Exchange Board of India (SEBI) guidelines. Traders in the derivatives market, especially in the call and put options where most of the action has concentrated since September 2008, expect liquidity and volumes to dry up further, which will sedate the market even more.

See the full content of this document

Extract

---

Markets to Lose Fizz ; Volumes in the Derivatives Segment Are Expected to Dry Up with the Manifold Increase in Lot Sizes of Contracts.

Already, volumes have fallen by half to around Rs 40,000 crore daily from over Rs 80,000 crore in October 2007. But since the National Stoc...

See the full content of this document

---