Derivatives Turnover On BSE, NSE Up 35.14% In Jan

Updated: Jan 31 2004, 05:30am hrs
The derivative market has shown an upward trend in the month of January 2004. The total derivative trading in terms of value, both on The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) has risen by 35.14 per cent to Rs 3,27,850 crore in January 2004 from the previous level of Rs 2,42,591 crore in December 2003.

In terms of volume also, the figures have followed the same trend. The total volume on BSE and NSE has risen from 522.21 crore in December to 624.83 crore in January 2004. In the month of January, value of NSE and BSE derivatives market exceeded the value of NSE and BSE cash market. The value of NSE and BSE derivative market was Rs 3,27,850 crore during the month of January, while the value of NSE and BSE cash market was only Rs 1,99,889 crore.

As we know, the NSE has played a vital role in the derivatives segment. In terms of value, it has constituted 98.84 per cent of the market. Volumes on the NSEs derivatives segment have increased steadily from 459.41 crore in November to 620.86 crore in January 2004 after reaching a level of 517.39 crore in December 2003. The above trend indicates that investors took more interest in the derivatives market than cash market in January 2004.

Observe the behaviour of individual derivative products on NSE and BSE during January, investors favoured futures products. Among the products on futures, investors have been showing more interest in NSE stock futures. The value of NSE stock futures has increased from Rs 1,50,932 crore in December to Rs 1,95,788 crore in January 2004.

The share of stock futures in NSE derivatives has decreased from 63.18 per cent during December 2003 to 60.42 per cent during January 2004.

On the other hand the share of Nifty futures in NSE derivatives has increased from 27.36 per cent to 30.82 per cent during the same period.

In the case of BSE, the stock futures showed a downward trend during January from the level of December. The value of stock futures decreased from Rs 1,844.01 crore during December 2003 to Rs 1498.44 crore during January 2004. But the value of Sensex futures increased from Rs 1785.04 crore to Rs 2213.19 crore during the same period.

The top five companies in terms of value of NSE stock future during the month of January 2004 was Tata Motors(Rs 23,693 crore),Tisco(Rs 18,865 crore), SBI (Rs 16,807 crore), Reliance Industries(Rs 13,205 crore) and Satyam Computer Services(Rs 12,957 crore). Among these, the highest increase was observed in the case of SBI(119.88 per cent) followed by Tata Motors(44.9 per cent).