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A Study On Derivative Market in India: Share Khan PVT LTD

This study analyzes the performance of India's derivatives trading market from 2000 to the present with a focus on futures and options. The objectives are to analyze investor performance and perceptions. The scope includes data on contract volumes and market turnover over the past decade from the National Stock Exchange. Primary research involved analyzing this data and surveying 30 investors in Hyderabad and Anantapur about their knowledge, preferences, and experiences. Key findings indicate most derivative investors are postgraduates with incomes over 500,000 rupees who use futures to hedge funds. They rely on news for advice and prefer 3-month contracts, experiencing moderate returns. The study aims to increase awareness and regional access to India's growing derivatives market.

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49 views16 pages

A Study On Derivative Market in India: Share Khan PVT LTD

This study analyzes the performance of India's derivatives trading market from 2000 to the present with a focus on futures and options. The objectives are to analyze investor performance and perceptions. The scope includes data on contract volumes and market turnover over the past decade from the National Stock Exchange. Primary research involved analyzing this data and surveying 30 investors in Hyderabad and Anantapur about their knowledge, preferences, and experiences. Key findings indicate most derivative investors are postgraduates with incomes over 500,000 rupees who use futures to hedge funds. They rely on news for advice and prefer 3-month contracts, experiencing moderate returns. The study aims to increase awareness and regional access to India's growing derivatives market.

Uploaded by

abhinayroyal143
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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A Study on Derivative Market in

INDIA
SHARE KHAN PVT LTD

Abhinay.G
Enroll no: 9075
Objective
Primary objectives:
To analyse the performance of Derivatives Trading since 2000
with special focus on Futures & Options.
To analyse investors perception towards investment in
derivative market.
Secondary objectives:
To understand the concept of the Derivatives and Derivative
trading.
 To know different types of Financial Derivatives
To know the role of derivatives trading in India.
Scope of the study
The project covers the derivatives market and
its instruments.
It includes the data collected in a decade of
derivatives turnover and contracts.
This study extends to the trading of derivatives
done in the National Stock Markets.
Along with that it also tells us about the
perception of a general investor towards the
investment in derivative market.
 
Limitation
• The time available to conduct the study was only
45days. It being a wide topic had a limited time.
• Share market is so much volatile and it is difficult
to forecast any thing about it whether you trade
through online or offline.
• Some of the aspects may not be covered in my
study.
• Hence this analysis cannot be taken as universal.
Market Research
Primary Objective:-
To analyse the performance of Derivatives Trading since 2000 with
Special reference to Futures & Options.
To analyse investors perception towards investment in derivative
market.  

Description
1)Selection of the last 10 year data on derivative market.
2)Data collected through NSE India
3)Analysis
The factors choose for evaluation were no of contracts and turnover.
FUTURES OF ‘DUBUR INDIA’
Questionnaire Research Methodology
Method of data collection:-

 Primary sources:-
Questionnaire Analysis
 Secondary sources:-
Books, Internet sources, journals, magazines etc.

Sampling Methodology:- Judgment Sampling


Sample size:-30
No of question:-14
Sampling Area :- Hyderabad and Anantapur .
Statistical tools used:- Bar graphs, tabulations, pie charts have been used.

 
Questionnaire
1) What’s your education qualification?

Interpretation: 40% of the investors who invest in derivatives


market are post graduate.
2)Income range:

Interpretation: the people with income more than 5lakhs usually


invest in derivative market.
3)which of the following derivative instruments do
you deal in

Interpretation: 63% of the investors invest in


futures
4) What kind of risk do you perceive while investing
in the stock market?

Interpretation: maximum people said risk


associated with investment in stock market is
slump in the stock market(43%)
5)Why people do not invest in derivative market?

Interpretation: from the data we could find that the main


reason of not investing in derivative market is lack of
knowledge represent by 66% and after that high risky
(30%).
.
6)Purpose of investment in derivative market?

Interpretation: out of the surveyed people 56% of the


respondents invest in derivative market to hedge their fund.
7) From where you prefer to take advice before investing in
derivative market?

Interpretation: out of the surveyed people 63% take advice


from news networks and only 23% take advice from
brokerage houses.
8) what contract maturity period would interest you for
trading in

Interpretation: 56% of investors prefers 3months


rather than 2 and 1 months
9)Result of investment n derivative market?

Interpretation: most of the investor in derivative market


felt moderate with the result of investment in
derivative market.
Finding from survey and analysis
 
 Most of the investors who invest in derivatives market are post graduate.
 Investors who invest in derivative market have a income of above 5,00,000.
 Investors generally perceive slump in stock market kind of risk while investing
in derivative market
 People are generally not investing in derivative market due to lack of
knowledge and difficulty in understanding and it is very risky also.
 Most of investor purpose of investing in derivative market is to hedge their
funds.
 People generally prefer to take advice from news networks before investing in
derivative market.
 Most of investors participate in stock index futures.
 From this survey we come to know that most of investors make a contract of
3month maturity period.
 Investors invest regularly in derivative market.
 The result of investment in derivative market is generally moderate but
acceptable.
Conclusion & suggestion
The major factors that will influence the futures and options market, FII
involvement, News related to the underlying asset, National and International
markets, Researchers view etc.
 
In a bearish market it is suggested to an investor to opt for Put Option in order to
minimize losses.
 
In a bearish market it is suggested to an investor to opt for Call Option in order to
minimize profits.
 
In a cash market the profit/loss is limited but where in futures and options an
investor can enjoy unlimited profit/loss.
 
It is recommended that SEBI should take measures in improving awareness about
the futures and options market as it is launched very recently.
 
Contd..
It is suggested to an investor to keep in mind the time and expiry
duration of futures and options contracts before trading. The lengthy
the time, the risk is low and profit making. The fever time may be
high risk and chances of loss making.
 
At present futures and options are traded on NSE. It is recommended
to SEBI to take actions in trading of futures and options in other
regional exchanges.

At present scenario the derivatives market is increased to a great


position. Its daily turnover reaches to the equal stage of cash market.
The average daily turnover of NSE in derivatives market is 400000
(vol.).
 
The derivatives are mainly used for hedging purpose.
Thank you

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