After equity indices of emerging markets, Indian investors will now be able to trade the key index of the UK. The National Stock Exchange (NSE) will launch trading in the FTSE 100, the UK’s benchmark equity gauge, from May 3.
NSE already offers trading in the S&P 500 and Dow Jones Industrial Average, key benchmarks in the US. Both NSE and the Bombay Stock Exchange are offering a range of global indices to be traded in the rupee. BSE recently launched trading in key equity indices of Brazil, Russia, Hong Kong and South Africa.
The introduction of derivative products on the FTSE 100 index, will enable Indian investors to hedge and gain exposure to the top 100 constituents, listed on the main market of the London Stock Exchange, NSE said in a release.
| LUKEWARM RESPONSE | |||
| Derivatives contract | Exchange | Listing date | Average daily turnover since listing (Rs cr) |
| Dow Jones | NSE | 8/29/2011 | 97.97 |
| S&P 500 | NSE | 8/29/2011 | 82.20 |
| Hang Seng Index Futures | BSE | 3/30/2012 | - |
| FTSE/JSE Top40 Futures | BSE | 3/30/2012 | - |
| iBovespa Futures | BSE | 3/30/2012 | - |
| MICEX Index Futures | BSE | 3/30/2012 | - |
| Source: NSE/BSE Data compiled by BS Research Bureau | |||
The FTSE 100 index accounts for over 80 per cent of the UK’s equity market capitalisation, forming the basis of a range of investment products, including over 30 exchange traded fund listings. It is widely used by a range of investment professionals for purposes of analysis, performance measurement, asset allocation, portfolio hedging and creation of financial products globally.
NSE Managing Director and Chief Executive Officer, Ravi Narain said, “NSE is committed to providing its investors with a range of products and asset classes. The FTSE 100 index will help Indian investors diversify their portfolios further and have access to one of the world’s widely tracked equity indices, while minimising currency risk.’’
Rohtas Handa, managing director of FTSE said, “FTSE is pleased to be a part of this innovative cross-market initiative with both NSE and the London Stock Exchange. We are committed to serving the global investment community including key markets such as India, where we intend to provide Indian investors with robust and reliable investment tools for a range of investment opportunities covering Indian and global markets.”
