Risk Return Dynamics of Investment Strategies and Arbitrage Efficiency of Indian Equity Derivative Market A Comprehensive Study

Abstract

In the financial markets as they say money lands in to the hands of its most efficient users. With the emergence of technology, integration of financial markets provides the superfast highways for the free flow of the capital. It provides the opportunity as well as threat to all the markets and its participants. Every country tries to attract and retain the foreign capital, so as to use this for the growth of the economy. Derivative products are designed to mitigate the risk and to provide liquidity to the markets. Innovative products are designed to provide the maximum opportunity to all the participants to trade in the markets. In Indian context many indices are designed such as Nifty, Bank Nifty, India VIX, to name a few, for different segments of interested investors. Derivative segment is quite bigger as compared to the cash market. newline