The New Market Jingle

The currency bazaar could soon outpace the equity derivatives, says SHANTANU GUHA RAY

QUOTE:

The figures for the first three months of this year alone are revealing. On an average, daily volumes in currency futures surged nearly 40 percent on both the Multi Commodities Exchange (MCX-SX) and the National Stock Exchange (NSE)— both fierce competitors. But compare this with the equity derivatives, and it would look like a joke. Volumes in equity derivatives on the NSE declined around 5 percent between January and March.

And the figures will only grow bigger for a nation where only 2.3 percent invest in the bourses. In fact, senior market analyst Hemen Kapadia says he is supremely confident that the currency market will overtake the equity market in one year flat. “India is following a global trend where trading in currencies dominates commodities and equities,” says Kapadia.


- From Tehelka Magazine, Vol 7, Issue 19, Dated May 15, 2010