Business Services Industry

Futures and options are up 5 percent on India's cash market; analysts sceptical.

Knight Ridder/Tribune Business News, December, 2004

The Economic Times, India Knight Ridder/Tribune Business News

Dec. 1--MUMBAI, India -- Operators are building up huge bullish positions in the derivatives segment. Total open futures and options (F&O) positions swelled 5 percent to Rs 12,200 crore on Tuesday.

This build-up now matches that of January '04, when the cash market was in the midst of a huge rally.

The build-up, which is growing with every passing day, is worrying derivatives analysts as any negative trigger will bring the buoyant cash market prices crashing down.

If equity prices fall, investors who have bet on a bullish market ahead and are holding long positions will be forced to unwind them by selling the open buy positions to avoid losses. Futures selling will...

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works. HighBeam Research
 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here