Indian Exchanges - Are Margin Norms Hurting Commodities More Than Equities? ICICI Securities Reviews
An employee works on the trading floor.  (Photographer: Tomohiro Ohsumi/Bloomberg)

Indian Exchanges - Are Margin Norms Hurting Commodities More Than Equities? ICICI Securities Reviews

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

As upfront margin requirement got hiked to 50% from March 01 2021, there has been mixed impact on equities and commodities.

While intraday cash volumes have been hit to some extent, derivatives seem to be broadly unaffected.

Discount brokers (e.g. Angel Broking Ltd.) have indicated some volume shift from cash to derivatives due to the margin impact.

However, the biggest impact is in commodities with Multi Commodity Exchange of India Ltd. average daily trading volume declining 24% in March-21 over February-21.

ADTV declined by Rs 90 billion composed of Rs 63 billion due to change in volumes and Rs 27 billion due to change in prices.

Click on the attachment to read the full report:

ICICI Securities Exchange Sector Update.pdf

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