India’s national issuing stocks are crazy, the index doubles for 5 years, and the total monthly futures options transaction reached 78 trillion US dollars
Source: Snowball APP, Author: Huang Binhan, (Huang Binhan, (
Indian national "stock crazy"
In recent years, India stocks have reached a number of historical highs, and the Nifty 50 Index has doubled within five years.What makes the Indian stock market crazy?
On Monday, the India’s Nifty50 Index 24641.45 points hit a record high.India’s Sensex Index 81587.76 points hit a record high.
The Indian stock market is crazy, India’s index is 26,000 points, and the 30 index of Mumbai India is 81.58 million points.But please do not sing the Indian stock index. They are the leading index, and the marketization is very high.Coupled with strong economy, if there is no war or other major risks, the stock index will continue with economic growth.Before the end of the year, it may rose directly to 100,000 points.
Indian retail investors are actually short.There are a lot of speculative activities, which sounds like a casino. Raamdeo Agrawal, chairman of Motilal Oswal, said that the public really sells options and reorganizes the options.This is too crazy.
There are several factors in the Indian stock market crazy.There are many reasons for the influx of a large number of retail investors into the Indian stock market.First of all, the Indian economy has grown rapidly in recent years, and the modernization of the capital market has been realized. The introduction of online transactions and centralized liquidation, electronic stock records have replaced fake paper stock certificates.
To put it simply, the bull market in the Indian stock market is science and technology and urbanization.Urbanization allows the economy to fly, and technology makes it easier for him to trade online transactions.However, in my opinion, there is another major factor that Indian derivatives are very developed, and everyone can short and short.The market value is reflected, and the market hardness is strong.It won’t collapse without a bull market.
Thanks to the vigorous participation of Indian retail investors, the number of Indian retail investors’ accounts has doubled since 2020 to about 160 million.Especially among young people, they have become popular to buy stocks and options crazy.
In the past few decades, the Indian stock market has been regarded as a relatively closed and lack of vitality. Compared with other major stock markets such as the United States and Japan, its attractiveness is relatively weak.In the past few decades, the Indian stock market has been regarded as a relatively closed and lack of vitality. Compared with other major stock markets such as the United States and Japan, its attractiveness is relatively weak.
In the past five years, the Indian stock market benchmark index Nifty 50 has doubled more than doubled, winning the world’s major stock markets.In the past three years, the transaction price of the MSCI India index was 58%more than the MSCI Asia (except Japan) index.
India’s crazy derivatives and transactions surpass the United States
The outstanding performance of the Indian stock market has made it more and more good for overseas investors.Data show that in May 2024, the average daily transaction volume of the Indian Nifty 50 Index futures exceeded the trading volume of US futures.
The Indian Securities Exchange has continuously enhanced the attractiveness of the stock market, launched new derivative products, and reduces minimum options transactions.Together with the desire for fast returns, the number of retail investors has surged, and the enthusiasm for investment is unprecedented.According to data, the average trading volume of the nominal trading of the Nifty 50 Index option this year is about 1.64 trillion US dollars per day, more than 1.44 trillion US dollars.
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Why can the short market be so strong.Because of the short market, listed companies are afraid of fraud, and even desperately protect the disk.At least there is no desire to go public at all.
Just like the United States, even under the index of continuous rising, more than 70%still can’t win the market.The same is true for Japan and the Indian stock market. Under the index of crazy rise, it is more about index bull market promoted by the leaders of various industries.A large number of small -cap stocks are also deep in water. This is why Indian retail investors are crazy but have not pushed rationality because they vigorously develop options.
How crazy is India’s development of futures?The world’s first trading volume
According to the data at the end of 2023, India alone in November, the total transaction scale in stock indexes and stock options reached $ 78 trillion, which was 441 times higher than the index of US $ 178 billion in spot stock transactions than the Indian National Stock Exchange.No other major markets in the world are so unbalanced.Although nearly 90 % of retail investors are losing money, India ’s futures and options transactions have continued to increase. For some every day, some high transaction volume contracts expire at the fierce trading activity before the expiration.At 9 pm local time.
After 1992, the Indian market began to receive investment in foreign institutions. Electronic transactions, guaranteed settlement, accounts to record stocks instead of paper stock certificates, and derivative transactions from 2000.Since 2019, the number of Indian futures and options traders has increased by 500%. This is also a common phenomenon in the world after the epidemic. The options of short -term contracts are also the hottest investment tools in Wall Street.
Another reason why Indian futures options are crazy is that there are some differences in India and other markets.For example, the long -awaited US stock market may absorb some excessive risk speculation, but India’s regulatory and tax measures make the cryptocurrency lose attractiveness, suppress the development of local digital assets exchanges, and retail speculation completely falls completely on stock options.superior.
I know that when it comes to options, many people will mention risks, but the question is that our current market can?It’s different all day?If the futures option market is developed, in general, junk stocks are afraid of the market, and IPO queues will not be available. Even if there are queues, the market will not be afraid.Because you try several times on the first day, you can re -think your life in the air -to -listed company in minutes.In this way, there will be few good companies, but they will be supported by more funds, and the trend will be more stable.The Western stock market is all cow, and the Indian stock market is also crazyKolkata Stocks. Why do we think that derivatives are a calamity here?I think we should think well.
But before that, it is advisable to do a good job of value growth, because the highly developed capital market, generally the phenomenon of crazy brain -free junk stocks is generally very small.If the market is internationalized in the future, we need to make these preparations in advance.Isn’t it?My friends.Think and think together.