A Study on Effectiveness of Equity Derivatives in Cash Market Segment in India

S.Dinesh and R.Arivazhagan
Additional contact information
S.Dinesh: Assistant Professor, Department of Management Studies, Sri Jayaram Engineering College, Cuddaore. India
R.Arivazhagan: Assistant Professor, School of Management, SRM University, Kattankulathur, Chennai, India

Indian Journal of Commerce and Management Studies, 2011, vol. 2, issue 5, 131-141

Abstract: One of the most significant events in the securities markets has been the development and expansion of financial derivatives. Derivative products like futures and options on Indian stock markets have become important instruments of price discovery, portfolio diversification and risk hedging in recent times. The empirical analysis points towards a decline in spot market volatility after the introduction of index futures due to increased impact of recent news and reduced effect of uncertainty originating from the old news. However, further investigation also reveals that the market wide volatility has fallen during the period under consideration. whether the introduction of index futures per se has been instrumental in reducing the spot market volatility or the volatility has fallen in line with general fall in market wide volatility.

Keywords: Pivote Point; Interest; Margin; Automated terminal; Derivatives (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://scholarshub.net/index.php/ijcms/article/view/468/457 (application/pdf)
http://scholarshub.net/index.php/ijcms/article/view/468 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aii:ijcmss:v:2:y:2011:i:5:p:131-141

Access Statistics for this article

Indian Journal of Commerce and Management Studies is currently edited by Dr. Arif Anjum

More articles in Indian Journal of Commerce and Management Studies from Educational Research Multimedia & Publications,India
Bibliographic data for series maintained by Mr. Asif Anjum ().