The Indian government has launched a new futures ETF, and the initial trading of the futures is set to start on Monday.
The government hopes to attract a large number of new investors in the coming months.
The Indian market, and markets globally, is undergoing a major shift in recent years, and Indian futures have been a mainstay in the markets, which are not trading on exchanges.
The move by the Indian government to launch the new futures market comes at a time when many other major markets are also looking to diversify their portfolio, with many stocks falling in the last few months.
But some analysts say the government should consider taking a closer look at how the new market will impact India’s domestic stock market.
“It may be time for the Indian Government to take a closer view on how it will react to this new platform and its underlying assumptions.
Will the current system be adequate for this?
What will be the impact on Indian stocks over the next year?
This could be a crucial question for the market as a whole,” said Amit Kumar Singh, an analyst at the Securities Industry and Financial Markets Association (SIFMA).
Singh said he expects the new platform will benefit the Indian stock market, as well as the broader Indian economy, by offering investors an easier and cheaper way to trade.
“The platform will help Indian companies, as they can easily set up new orders for shares of their companies and move them on a daily basis,” he said.
“Investors will be able to take advantage of the fact that the platform is currently not trading in India.
It will also give them a better sense of what is going on in India as the market shifts to the new trading system.
It should also help Indian corporates to be able make smart decisions and plan their operations accordingly,” Singh added.
The government has said it is taking a “prudent” approach to diversification and the launch of futures trading in the Indian market has been a big step in this direction.
“The government is planning to launch a futures trading platform for India, which will include the country’s largest and most diversified stocks.
The platform will offer investors access to both the futures and fixed-income markets, as per the market fundamentals,” the government said in a statement.
“It will enable Indian companies to set up and operate in a number of industries, including retail, agri-food, and technology, which may be important for the country in the future.”
Singh believes that the market for Indian stocks has already started to move away from equities in recent months.
“Over the last six months, the Indian stocks have fallen by around 40% as well, with the Indian equities index down by 40% to 5,000 points.
Indian investors have also been getting more exposure to foreign equities as they continue to be exposed to the Chinese and other Asian markets,” he added.