NSE jumps to top spot in stock futures contracts

Friday, 30 November 2007, 03:25 Hrs
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Mumbai: The climb of India's National Stock Exchange (NSE) to the top spot in the stock futures contracts in the world, beating South Africa's JSE, and its rise to second place in the index futures segment implies a bright future for the Indian stock markets, say analysts.

According to a leading analyst and NSE member here, the exchange's rise in the stock futures segment was mainly due to the number of stocks that is being added into the futures and options (F&O) segment regularly, which has been increasing by the day.

"For example, 15 stocks got added to the segment just today. That is a huge number, and from the signs that we see today, it is only going to get bigger and better from here," he told IANS Wednesday.

He predicts a continued addition to the futures volume in coming months as more and more large companies try to tap the capital markets through initial public offerings (IPOs). A case in point would be the two IPOs from Reliance Power and Emaar MGF, both about $500 billion in size.

"The increased volume would give depth to the markets and more activity in the exchange would mean more recognition worldwide," he said.

According to NSE data, on Nov 28, the index futures saw a trading volume of 234.39 billion arising out of 822,807 contracts and index options saw 226,727 contracts getting traded at a notional value of 65.24 billion.

The total turnover of the F&O segment of the exchange was around 862.87 billion.

"With as huge a participation in the F&O segment (of the NSE) as is expected, before soon the NSE would be one of the most recognized exchanges where people would want to do business with. For example, an investor in the US will be interested to trade in here," he said.

"The future is indeed bright for the Indian stock markets in general, and the NSE in particular."
Source: IANS
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