Why India's Derivatives Craze is Worrying the Government | Vantage with Palki Sharma

Why India's Derivatives Craze is Worrying the Government | Vantage with Palki Sharma
The Indian markets joined an elite list on Tuesday as its market capitalisation crossed $5 trillion. Despite the exodus of foreign investors, the markets have held their own thanks to increased participation from Indian retail investors. A record 32 million demat accounts were opened in India in the last financial year. While the increased participation is positive, the government appears spooked by the "derivatives frenzy" gripping the markets. Unlike equities, derivatives are riskier financial instruments. Data shows that 90% of active Indian retail traders lose their money in derivatives trade. What explains this trend? How can the Indian markets be made safer for novice investors? Palki Sharma tells you.
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India | Stock Market | Sensex | Nifty | Trillion Dollar Club | Market Valuation | Global Stock Market | Firstpost | World News | Vantage | Palki Sharma
#india #stockmarket #nifty #sensex #trilliondollarclub #marketvaluation #globalstockmarket #firstpost #vantageonfirstpost #palkisharma #worldnews
Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.
The show is anchored by Palki Sharma, Managing Editor, Firstpost.
By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories - making Vantage a destination for thought-provoking ideas.
Vantage airs Monday to Friday at 9 PM IST on Firstpost across all leading platforms.
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[@Lifestyle12360]

1 trillion added in just 6 months 👏👏

[@HarpreetSingh-xg2zm]

It’s bubble, did you even watch the video, investors are at risk especially those with derivatives

[@kamandalamjalam1541]

@@HarpreetSingh-xg2zm They do not listen. They are Bhakths injected with a sedative called Nationalism.

[@DC-qn4wz]

No comprehension ability?

[@Roger-nu6zj]

​@@HarpreetSingh-xg2zmthis not bubble wait for 4 June 😂

[@heisenbergrai9235]

I think its just optimism ​@@HarpreetSingh-xg2zm

[@Manjunathnswamy]

All credit goes to believe India and we are investing government companies now

[@kamandalamjalam1541]

Did you watch the complete video? A bloody bubble is going to burst and almost all investors will loose the money.

[@avinashh34]

​@@kamandalamjalam1541Lamo noway india is developing country it's going to increase 😂

[@Rav01508]

​@@kamandalamjalam1541artifical bubble created by mafia investors to prop up the market until it burst. Grab and run situation

[@kamandalamjalam1541]

@@avinashh34 I lost all my properties in Feb,2008 Crash

[@tkconsumesytcontent]

​@@kamandalamjalam1541 how does that happen iwant to know friend

[@peaceleader7315]

Buy a house, land, own small business raise a family.. be happy.

[@zionven]

u need money to do that, so ppl are flocking into trading

[@peaceleader7315]

@zionven I can understand.. hmmmm.. capitalism economic system and it's wealth distribution between nations and people is definitely unfair indeed.. hmmmm.. and people resort to gambling to have their dreams.. Hmmmm.. such a scam.

[@peaceleader7315]

We need to search for a fairer economic system for mankind.

[@zionven]

@@peaceleader7315 cannot happen... Humans have been same since the invention of jesus and what not... Same continues

[@peaceleader7315]

@zionven look closely.. there are prograss .. from slaves economy to feudalism to capitalism there are prograss we have washing machines, fridge, aeroplane, and yeah the most recent artificial intelligence and repetitive machines and yeah robotic technologies.. hmmmm yet we want more.. and that is only one thing that we are lacking.. humanity as a species, ambitions .. hmmmm.. if only humanity could own the innovation and the means of production and not individually..

[@GururajBN]

The government deserves to be commended for inculcating the investment culture in the country. Government companies give both good dividend and value appreciation. This was unheard of in India until about six years ago. I have begun to invest at an advanced age. Invest and wait for appreciation. It is the best option. Short term shifts and volatility won't affect an investor. I studied derivatives market for some time. I realised that option sellers have better chances of making money, than the option buyers. An option seller needs big capital. So, I have stayed away from derivatives. Most people do not have the wherwithal to study the market and take positions. They simply follow others' advice and burn their fingers. F & O are definitely not for beginners who have just started investing.

[@kashyap_0-0_]

Idk about govt but these aggressive investment apps who sponsor thousands of youtubers online to promote their app might just deserve some appraise about bringing out this culture but they look very close to other shady gambling apps the way they promote themselves I'm not very knowledgeable about such things so idk

[@gjw1wj721]

Today the market has peaked at the highest level and we have election result next month and the market will correct atleast 5% then we have US Fed repo rate cut which will sink the Global market up to 30% for the next 2 years, with US elections on Nov'24.

[@yashcrgfa8825]

No, it because of the ease due to AI and apps. Nothing to do with government

[@OutOfTheRatRace24]

The government or SEBI won't touch F&O markets. They do get a huge % as tax on trading F&O.

[@Suhass149]

yeah they won't, their job and obligation is to regulate and inform, it's enough if they do that correctly

[@piyushchoudhury4394]

Madam you are the best speaker with very good knowledge and understanding

[@kaushikganesh6216]

They just give disclaimers that theyre not registered with sebi and continue their influencing 😂

[@manishjaiswal1959]

Most of finfluencers get away by saying it’s their perspective and they should do their own research

[@debojitrabha2502]

just like mutual funds lol

[@AnitaSharma-oj3zq]

Absolutely important for young Indians to tread cautiously. Worldwide recession is here to stay for a good few years. Do not be misled by the glamour of shares at this point in time. There is no such thing as easy money.

[@arvindhmani06]

I wouldn't say don't invest, but definitely don't put all your savings into the market. Know what you're going into. I'm not an advisor btw

[@jdevnani1978]

Good Info.. 👍

[@JaiSahu-cf4mw]

Indian share market doubled in the last 5 years, listed company valuation and money in hand doubled. But listed companies have not come up with any big expansion plans in these years in fact they have been in cost cutting mode because they have no venues to expand out of low demand in large section of the society. The more Indian public sector fuel money in market the more big foreign investors make profit to exit money from the market. 🤗

[@anushkaoswal9827]

Good point but this is not always true , it might be a way to think but wealth generation is happening in the country , demand will always increase with such big population but hope for the best let's see what happens

[@JaiSahu-cf4mw]

​@@anushkaoswal9827 this is the reality of this very moment of the market. Dialogues do not matter in the market.

[@anushkaoswal9827]

@@JaiSahu-cf4mw it matters because this influences the market sentiments

[@kanya-7x]

Are u student ??? So my que is, investing in market good or should bye gold?

[@zeetvisascam3443]

India is now western ATM!!

[@abidhayat8424]

Your speaking skills are worthy of appreciation. I do not know whether you left or organization asked you to do so. But sad indeed. Wish to work with you someday. Stay Blessed.

[@dsvikas]

You are absolutely right. In fact one should never do F&O trading if he or she is new to stock market.

[@rajeshsaran5914]

Great info. No influencer required. GOI get there registration like rera to control agents

[@anaghdash9489]

My friend Sagar Banik is also a Finfluencer.

[@AnishShukla88]

Good to see Allison in first post.

[@gajendrads8356]

its more reasonable, practical to educate the listeners than advisors coz the ones putting their money, hard earned should be more matured, smart , accountable as they are inevitably and its simple and easy.

[@JJ-do4vj]

Just a simple and easy suggestion make stop loss mandatory

[@mahendravarman6508]

Tks palki, I am also a new investor. Wl be careful

[@anoopksd]

Thanks for the information.. Now trading ir invest is very risky bcoz of foreign investors..😢

[@AeonMusicRecord]

Good report

[@kamandalamjalam1541]

But that dirty lady Nirmala S's voice is so annoying...I do not know why she speaks as if the country is indebted to her. She thinks that entire India is living on her personal pay cheque.

[@modernmogli5155]

Out of 5T dollars how much is Derivatives and Stock bought and holded

[@prasadkilaru9447]

Trading in derivatives gives a kick. It is true most of the times the traders in derivatives lose money. But what drives them to continue betting money is, they make money in 2 or 3 trades out of 10. With the hope recovering the lost money they go on betting and the process continues.

[@death_parade]

So, basically, gambling addiction.

[@manannaik1341]

It’s not gambling… if you did lots of research about company

[@moraramu3340]

#JaiBharat #JaiHind

[@sagar23007]

Derivative market is too risky, that's why govt of India. Introduce more derivatives index. Volatile expiry on every single day. Cut the insensitive to work In less volatile intra day trade. SEBI chief team up with rich trader, gave them early access of data to loot small trader, and after scamming multiple years still no punishment to her. Cause they are worried about small retail investors 😂😂😂 Hypocrisy at peak.

[@vanacharlasaipavankumar6331]

One should see the growth and P/E ratio which are low compared to few years back

[@Jason-sf8vx]

There is always flip side of investing in stock market , deratives are very risky and will create major systemic risk

[@sudhirchandra9790]

It was destined

[@wongsoongcheng1245]

India superpower!!

[@XiaoxiaoYuyu-ug3gy]

hong kong a little city of china is superpower it have also hit 5 trillon before

[@sid8285]

Chinese bot keep posting such crap to trigger negative comments🙄

[@prajwal1341]

​@@XiaoxiaoYuyu-ug3gywumao🇹🇼

[@nantakumaran9789]

India superpower or superpoor?

[@sid8285]

Chinese bots

[@bharat94524]

People make equal money in a crash as well, a single person can have as many demat accounts as he want. Many foreign direct trading is done in derivatives market because they potential here. In any type of business there is risk involved if gains are higher the risk will also be higher. In normal business 99% startup fails does it mean we stop trying. The government should work for awareness and risk mitigation and not interfere in someone's decision of what to do. If People get losses they then move on to do different things. India is so big population wise not even 10% people are in trading and stock market. They are getting means to enter easily because digital evolution in India. I happy we are progressing and stop creating negative narrative and sentiments.

[@aiswaryasatheesh3351]

🔥❤️

[@co0lman_]

This is a fucking amazing explanation!!

[@michaelchua3942]

greed unfettered will lead to disaster.....

[@vinayakshanbhag7019]

people are losing money in lotteries, gaming, betting but government dont tend to think about it, but if retail investors make money they have problem, it is not their job at all , go stop betting and gaming where people committing suicide , dont talk about small caps bubble and derivative markets are risky.....

[@rahuldhakane7575]

You're naive man... I feel sorry for you...!!!

[@Shobhit261]

Meanwhile whole West is crying in a corner 😂😂😂. Great work Modi ji government.

[@sajithsbabu]

if ministry is not concerned, why they keep options and derivatives?

[@anuprajwal]

It’s not just about those people who give financial advice.. there are others fields as well .. like for example health .. only licenced people should be allowed to advise on health as it’s even more riskier than finance

[@mahesh84]

All credit goes bjp and its growth trust

[@close_all_tabs]

propaganda

[@sid8285]

​@@close_all_tabsPropergandu

[@soragaming3653]

​@@close_all_tabs Muslim

[@close_all_tabs]

@@soragaming3653 Orc

[@close_all_tabs]

@@soragaming3653 Ruski

[@sayand2706]

Couldn’t agree more when I started out I lost around 7 lacs in Future, Options and currency trading ..After that I stopped trading in them now I just buy shares and hold them till my targets are met ..It’s lot less stressful and less risky ..

[@sushilverma3770]

govt statements and worry is superficial. They are earning. hefty money by taxing derivatives trades....

[@alexxavier491]

Great let it be 10 trillion dollars

[@rahulkaplayer]

I m also investing all saving in MF. Slowly will start learning abt stock market

[@kashyap_0-0_]

"all savings" I'm not an expert but that doesn't sound good

[@Financial_information-.]

It really happened because of the power of the Sales person 😁

[@coffeeaffairs5643]

Zerodha kaha hai?

[@ashwanihere]

Fininfluencer are not just giving stock tips. I hope SEBI differentiate between influencers trying to influence market vs the one providing financial awareness

[@user-rc5cy8qr8b]

Always very extraordinary 💘

[@Lalit02Dhanwani]

Where does that money go those 90% who loss there money, where does it go

[@Bhuv-]

When the underlying nation's strength is not great and gambling is the only way forward, then this is the result.

[@ramakalimireddi9083]

Fastest-growing is not good for market, how fast you rise there is suddenly fall also so slow and study. I think some body is pushing to high to bring down.

[@rajvardhanshinde6251]

Market capitalization has grown greater than the GDP itself. This is madness!

[@rajupillai3048]

govt and SEBI keeps on taking steps to protect big players and make it more difficult for retail investors. This again will be the start of another such step that we can soon expect. Govt does not have any issue in ppl putting their money into online gambling. Why are they not thinking about common households then? Minister maam can phrase it in a way to seem that she is trying to help common households. But they have just been trying so hard to make the market more and more favourable for big players.

[@DhananjayVenuri]

Yes it’s common to buy derivatives and insurance swaps against the common loans.. Imagine the banks profit even if you can’t pay ..😂They are in win-win situation no matter what.

[@Financial_information-.]

This mostly happened because of the sales person in mutual funds😅

[@akhand_bharat_2034]

Dhruv Tatti - Do we really need stock market ?

[@priteshpadarat8191]

They know modi 3 is coming

[@jonjosenna5581]

No one under 80 speaks English like this even in England?!

[@close_all_tabs]

doubt

[@ash9x9]

What's your point?

[@demontrader1222]

He fears India.​@@ash9x9

[@devilsadvocate4864]

With clarity?

[@GreenDriveIndia]

What do you mean

[@TheBrutalvirus]

Bigger the risk bigger the reward…Why do the government intervene with personal finances…..Like Forex for example why the government not allowing retailers to trade like other countries…Yes its risky and tough but with proper learning you could reap rewards…Its a business too like any other business

[@4EVRLOVE]

German shephard, India ko stock market kaise 5 trillion ho gya.

[@AnjuSingh-vn6di]

Those who making fun , listen to world media and leader instead of hoping market crash.😊

[@DC-qn4wz]

It's fun until all come crashing down!

[@vinaybhat7670]

Only 7-8% of indians invest on market...so still there is a lot of space left to grow our Indian market.. People buy more when it falls😂

[@DC-qn4wz]

@@vinaybhat7670 But the rest live in the slums. Where are they going to get the money to gamble?

[@-rate6326]

​@@DC-qn4wz rest live in slums? Have you done your homework? Google how many peoples live in slums in India. It's delusion at best.

[@DC-qn4wz]

@@-rate6326 Can't accept the truth? Most live in abject poverty.

[@salex546]

@@DC-qn4wzThis is what happens when you form opinions about others through reels on tiktok. Is it difficult? Going about life w a head as thick as yours?

[@sheriya04]

Ma’am we heard about 5 trillion economy enough, and I’m 100% sure will be there. But, I wonder why we do not talk over per capita income? and do the comparison with rest of the world to see where do we stand. I think it’s going to be great subject to Talk about!

[@SimhaArya-zu7vo]

Per capita is GDP divided by population Large population = smaller change in per capita For example, 2 decade of 10% growth in China took it to just 10k

[@user-is2ho7et8o]

Zeo sum gane is derivatives.

[@ashishjindal6382]

just make option buying costly, same as option writing.. problem solved

[@MrKorlepara]

Investing in mutual funds and giving time to appreciate it is no risk..the risk only when they run behind quick money..otherwise you always get good returns with disciplined investing..dont go for individual stock if no idea...pls invest only in mfs

[@SaiSS961]

Now i fear the govt is going to ban all retail traders from trading in derivatives 😢😢

[@parthapratimroy8282]

It is for better bro.. because option trading is a gamble. Only one can. 1 percent makes the money and other 99 loses it.

[@theaborigine1119]

Then how Govt will get taxes, derivatives were born to balance the stock price just ban them for one day and see what happens to the Indian government's favourite Reliance HDFC and TCS stocks it's the new generation of Scammers who are giving bad names to the Stock market by conning new investors and traders...I have heard stories of Scammers posing as SEBI stock market analysts and asking money from new traders...

[@rudrapuhan695]

So who the heck they going to decide our future . It's our money Our choices. We lose or we gain It's depend upon our strategy . They can't just shut down

[@ibreddy2129]

No retail buyers then no money for big players hence it will never happen.

[@ab1ek145]

90 percentage traders are loosing means to whom that money is going

[@naruti3992]

Bear

[@-rate6326]

Intraday traders loose money. Long term traders make money.

[@CollegeYari]

Just look at a retailer P and L, you will see their losses are beacuse of high govt tax. GOVT tax you even if you are in loss. Govt. takes advantage and exploits easy targets.

[@user-gs5yy8pv9c]

Have you seen the video fininfluencers are the worst. No one invests without study and big amounts unless it is an institution. Individual investors cannot gamle in the markets

[@dhruvkhutiya9423]

GameStop

[@Liondewarangal]

Can any smart person reply with the total number of active mutual fund folio accounts and Demat Accounts

[@close_all_tabs]

If you are not smart enough to do it yourself then you don't earn it.

[@Liondewarangal]

@@close_all_tabs అబ్బా

[@senthilranga]

It's all a speculation market..

[@garrylum6025]

Don’t put all your eggs in one basket.....

[@vivekalexander1217]

Hope this government continues and the congress don’t come back to ruin the country again

[@pranjanandasaraswati-sc2sv]

What I can't get is $5+$3.6 tn ,why India is not $8.6 tn economy

[@bkchaitany]

Capitalisation is different and yearly earning is different. Suppose my assets are 10 crores and year income is 1 crore then my yearly income does not become 11 crores.

[@soulmadheart4970]

GDP is Value of all goods currently in country Market capitalisation is value of current and also future of shares of companies

[@arunkottolli]

Welcome message to Modi3.0

[@jimkuan8493]

The speculation continues. The money party continues. Oh, by the way, one small question, where are the logistics, manufacturings and manufacturing ecosystems? Dancing on empty.

[@ArpitArora14]

Bubble

[@coffeeaffairs5643]

sebi should ban all fin fluencers

[@ajaykumarsingh702]

No. Those fin fluencer are the very reason that people got to know about the stock market. People didn't even know what derivatives were or equity meant.

[@dexthar01]

Seriously the title is funny. If the Govt. Was worried. They wouldn't have allowed all those betting apps. The just want more money. And make poor suffer even more. Govt. Just apply taxes and earn from those gambling apps. Naming then as game of skill. Wake UP.

[@kashyap_0-0_]

Certainly looks like they love the money they get from betting apps, gambling games, and these pan masala and surrogate marketers who has single handedly ruined every single street of India and Indian railways apparently had to allocate a separate 1000+ crore ₹budget just to clean these gutka

[@DV-lh2ov]

It is a massive bubble arising out of lack of regulation. Even US stock market is way more regulated than India's. Wait for June-July to see a gradual unwinding. It may not be a sudden fall because BJP is coming back to power.

[@harishkotian83]

Be more aware from influencers than trading F&O. F&O is safe compared to dumb finfluncers.

[@ScoobyDoo-zp1sq]

Seems like a bubble with those growth rates

[@anandsuralkar2947]

stock market is always a bubble

[@SaiSS961]

Ofcourse! But the bubble is not going to collapse anytime soon, instead it will correct heavily.

[@deutschWallah]

Another master stroke by Modiji 😃

[@peaceleader7315]

Gambling.

[@bumblebee2956]

Higher they go harder they fall😂

[@salex546]

Never seen someone praying for someone else’s downfall so hard and then being happy thinking about the outcome of said downfall. The hate in your heart is astounding. Your parents did a piss poor job of raising you.

[@rishibavimanthani765]

Speaking out of experience? 😂

[@AkshayKumar-wo2cx]

More taxes coming in soon .. our gov is useless

[@sandeepsandhu4286]

Spoke like an illetrate fool ...go live where you pay no taxes..moon may be ?

[@sreenivas3050]

90% loosers…..this is how stock markets works world wide……its a fact…..

[@phuntsokg9694]

Last time i checked, Hongkong was a part of CHINA..... lol

[@kashyap_0-0_]

Last time i checked an ancient map of India, western china was part of INDIA..... lol

[@phuntsokg9694]

@@kashyap_0-0_ 60 % India was a part of Nepal. India was born on 1947 AD. lol

[@Username78952]

​ @phuntsokg9694 100% China was under tibetian before 1940s lol 🎉 . They ruled on you ,I guess everyone ruled on you . Humiliation of millennium. Tibetian ,uyghur ,Mongols, etc leave them alone, they aren't chinese .

[@phuntsokg9694]

@@Username78952 yeah most of, agreed.

[@Username78952]

@phuntsokg9694 yea China was born recently just after a year of India ,tibet was separate. But things really sound like before Europeans ruled on us ,there wasn't any people lived here no civilization no culture . One more thing nepal was princely state under British ,they were beaten by britishers and signed treaty for the trade of tibet towards China primarily for opium. I don't know what your country's history tells you

[@theaborigine1119]

Idiots ask for tips scammers con those idiots and with bad tips when they face the real trader they loss everything to them then blame the stock market and curse Modi...Ahhh life Cycle of the Indian stock market...If Government really worries about traders and investors why don't they open a school for them instead of enjoying their tax money...

[@death_parade]

Even if the government does that, will the people realize? So many government schemes and websites exist yet MOST people remain blissfully unaware of it. Even when they become aware of it, they avoid because of "sarkari hai" mindset. Ghar ki murgi dal barabar.

[@johnkarunaker202]

U will definitely see a spike once modi is gone

[@yongchen8204]

$5 trillions market share does not translate into wealth and prosperity for 96% of indians. so where all these money goes? money laundering out of country or hiding in his bed matress.

[@dhirajgupta7435]

So they must bring in wealth distribution program - Socialism. So that we can create Socialist Paradise, like west bengal, kerala, tripura, North Korea, Cuba, Venezuela, ecuador....and many more.

[@diablo9958]

😂​@@dhirajgupta7435

[@soragaming3653]

​@dhirajgupta7435 True socialists and communists are dangerous for a country 😅

[@Amoghavarsha.]

Why your @$$ burning 😂

[@death_parade]

@@dhirajgupta7435 Please. Anything but that.

[@jigyashgr]

bs as always

[@jimkuan8493]

Do Indians know that Bangladesh is richer than India, on per capita basis? And it is not a small population country. It also has a huge population, but they are richer than Indians. That is because Bangladesh PRDOUCE REAL PRODUCTS, not talking and money speculation.

[@indrajitpattnaik1424]

Now it is not check 2024 world bank data

[@sridharswaminathan5406]

Yes we know few labour are here at India and avg goes for others.

[@gjw1wj721]

Today Nifty hit the highest level ever, and it makes future market to be highly saturated and highly competitive. So always do SIP investment on a random basis whenever the market is discounted and do not bulk buy any stocks and also try to minimize IT stock investment as there is some bubble in the IT economy. Keep IT investment at the lowest as possible and use IT Nifty Index ETF or MF, as there is a huge transition due to AI/Machine learning and Automation, in the IT industry. Also several big IT firms has posted less than 7% growth, which is a very poor growth in the last 2 quarters. Whoever has highly invested between Apr' 2018 till Feb'2024 should have 2x profit as many investors including me have created huge passive income and have retired on march 2024.

[@ashishanand4mech]

Something is weird about her shirt.

[@babakela8634]

Say thanks to all chhapri youtuber influencers 😂😅😂😅😂