Chart of the Day

Derivatives traders in India started warming up to options only after the financial crisis. But now options (particularly Nifty options) account for nearly three-fourths of the total derivatives trading on the National Stock Exchange. The rise in options trading has been aided by a differential tax structure, which has resulted in a considerable low outgo on statutory taxes such as the securities transaction tax on options contracts. In January 2008, the average daily turnover in options contracts amounted to ₹ 6,600 crore. It now stands at ₹ 55,600 crore. Futures trading during the same time has dropped from ₹ 56,600 crore to ₹ 20,000 crore.