GROWING TRENDS IN EQUITY DERIVATIVE MARKETS IN INDIA – SPECIAL REFERENCE TO FUTURES AND OPTIONS IN NSE

Abstract

The equity derivative market has grown at a greater rate than average in recent years, driven by developments including more investor engagement, more liberalization, and more improved technology. In light of this expansion, the following trends that are reshaping this sector of the financial industry can be identified. In the span of only five years, India's participation in the equity derivatives market has skyrocketed, going from almost nonexistent to a world leader. This expansion was made possible, in large part, by the 2019 transition from monthly to weekly contract expiration. In light of the above, the purpose of this research is to evaluate the increase in the trading volume and turnover of equity derivatives over the past decade. The research is based on secondary data supplied by NSE regarding the yearly turnover of equity derivatives during a 10-year period. This study analyzed trends in the equities derivatives market using data collected from the NSE website and a linear regression model. Researchers typically consider a ten-year term to be enough for identifying significant market adjustments, therefore that is how long we based our data gathering on. Researchers learned crucial things about the patterns of evolution of equity derivatives, which helped both analysts and investors make better decisions. In order to understand market dynamics and predict future trends in the stock derivatives market, the research findings will provide crucial information. Investor interest in Equity derivatives financial instruments has led to a positive market expansion in the last 10 years. The future market opportunities can be predicted through analysis of past decade trends and patterns which will identify major market growth drivers. Stakeholders can create logical decisions for the equity derivatives market through this data-intensive method which helps them adapt their investment approaches to market evolution.