Risks, Price Factors, and Market-Condition-Based Strategies for Retail Investors 1. What Is an Option? An option is a financial derivative that derives its value from an underlying asset such as a stock or index (NIFTY, BANKNIFTY, SENSEX). An option contract gives: the buyer the right (not obligation) the seller the obligation to buy or sell the underlying asset at a pre-defined price (Strike Price) on or before a specified expiry date . Types of Options: Call Option (CE) – Right to buy Put Option (PE) – Right to sell Options are traded for hedging, income generation, and directional views , but they carry significant risk , especially for uninformed participants. 2. Key Risks in Options Trading Options are not suitable for all investors . The primary risks include: a) Time Decay (Theta Risk) Option value erodes with time. If the market does not move in your favour, the premium can decay rapidly , especially near expiry. b) Volatility Risk Option price...
FTSE INDIA GLOBAL EQUITY INDEX REVIEW : STOCK REBALANCING Expected to attract INFLOW OF $1.4 Billion
Key Updates As part of this rebalancing, 14 companies have been included in the FTSE All-World Index. The changes reflect an adjustment in index weightings, influencing market movements. Some companies, such as ICICI Bank , Kotak Mahindra Bank , and Zomato , have received weight upgrades, whereas Bajaj Finance has seen a weight reduction. Additionally, Nexus Select Trust has been removed from the index, with an estimated outflow of $54.6 million. Companies Added to the FTSE All-World Index Several Indian firms have been newly included in the FTSE All-World Index, potentially benefiting from increased passive fund inflows. The additions include: Bajaj Housing Finance – $48.4 million 360 ONE WAM – $25.6 million CRISIL – $8.1 million Fortis Healthcare – $24.1 million Blue Star – $8.3 million Ajanta Pharma – $23.8 million Premier Energies – $22.2 million NALCO – $14.0 million IndusInd Bank – $25.5 mi...