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Technidex
Stock Futures Index ©
The first Stock Futures Open Interest based Index…
Technidex
Capital Advisors
April 1, 2016
• The terms "benchmarks" and "indexes" are often used interchangeably, but they are actually unique terms that
describe different things. All indexes are defined by their objectives and methodologies, which together
determine their relative strengths. A benchmark is something that serves as a standard by which others are
measured. A good index has a well-defined objectives and a methodology that best satisfies that objective. The
methodology should be rule based and transparent.
• The derivatives market is, in a word, gigantic, often estimated at more that $1.2 quadrillion. Some market
analysts estimate the derivatives market at more than 10 times the size of the total world GDP.
Introduction
analysts estimate the derivatives market at more than 10 times the size of the total world GDP.
• Technidex Capital Advisors owned Technidex Stock Future Indexes© (© 2012) are the first ever indexes to be
based on the Open Interest of stock futures. They are an ideal bench-mark for tradable exposure to Indian stock
futures & their underlying stocks.
• Technidex Stock Future Indexes© (© 2012) are completely market driven and reflect the sentiment much better
than any other index on real-time basis as they simultaneously take into account the price movement, volumes
& open interest of all active future contacts of the constituents, making them an attractive derivative
instrument for listing on Stock Exchanges.
April 1, 2016 2Technidex Capital Advisors
Nifty 50 Index Future: 10 year journey…
7,500
8,500
9,500
Nifty 50 Spot & Future Index movement
Nifty 50 Index Future Nifty 50
CAGR of 10.35% since Jan 2, 2006
April 1, 2016 3Technidex Capital Advisors
2,500
3,500
4,500
5,500
6,500
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
IndexValue
as on March 31, 2016
Open Interest: over 3x
6,000
7,000
8,000
9,000
10,000
42,000
49,000
56,000
63,000
70,000
AveDailyOpenInterestValue(Rs.Crore)
Average daily Open Interest Value of Stock Futures
Total Stock Future OI Value Nifty 50 Index Future
April 1, 2016 4Technidex Capital Advisors
-
1,000
2,000
3,000
4,000
5,000
6,000
0
7,000
14,000
21,000
28,000
35,000
42,000
1-Jan-06
1-Apr-06
1-Jul-06
1-Oct-06
1-Jan-07
1-Apr-07
1-Jul-07
1-Oct-07
1-Jan-08
1-Apr-08
1-Jul-08
1-Oct-08
1-Jan-09
1-Apr-09
1-Jul-09
1-Oct-09
1-Jan-10
1-Apr-10
1-Jul-10
1-Oct-10
1-Jan-11
1-Apr-11
1-Jul-11
1-Oct-11
1-Jan-12
1-Apr-12
1-Jul-12
1-Oct-12
1-Jan-13
1-Apr-13
1-Jul-13
1-Oct-13
1-Jan-14
1-Apr-14
1-Jul-14
1-Oct-14
1-Jan-15
1-Apr-15
1-Jul-15
1-Oct-15
1-Jan-16
Nifty50Future
AveDailyOpenInterestValue(Rs.Crore)
as on March 31, 2016
Turnover: Derivative Segment drives market sentiment
6,000
7,000
8,000
9,000
10,000
210,000
245,000
280,000
315,000
350,000
Nifty50Future
AveDailyTurnover(Rs.Crore)
Average Daily Turnover vs Nifty 50 movement
NSE Equity Turnover NSE F&O Turnover Total NSE Turnover Nifty 50 Index Future
April 1, 2016 5Technidex Capital Advisors
-
1,000
2,000
3,000
4,000
5,000
6,000
-
35,000
70,000
105,000
140,000
175,000
210,000
1-Jan-06
1-Apr-06
1-Jul-06
1-Oct-06
1-Jan-07
1-Apr-07
1-Jul-07
1-Oct-07
1-Jan-08
1-Apr-08
1-Jul-08
1-Oct-08
1-Jan-09
1-Apr-09
1-Jul-09
1-Oct-09
1-Jan-10
1-Apr-10
1-Jul-10
1-Oct-10
1-Jan-11
1-Apr-11
1-Jul-11
1-Oct-11
1-Jan-12
1-Apr-12
1-Jul-12
1-Oct-12
1-Jan-13
1-Apr-13
1-Jul-13
1-Oct-13
1-Jan-14
1-Apr-14
1-Jul-14
1-Oct-14
1-Jan-15
1-Apr-15
1-Jul-15
1-Oct-15
1-Jan-16
Nifty50Future
AveDailyTurnover(Rs.Crore)
as on March 31, 2016
Turnover: Stock futures fuel the rally
6,000
7,000
8,000
9,000
10,000
36,000
42,000
48,000
54,000
60,000
IndexFuturevalue
AveDailyTurnover(Rs.Crore)
Average Daily Turnover vs Nifty 50 movement
Nifty 50 Index Future Turnover NSE 50 Stock Futures Turnover Nifty 50 Index Future
April 1, 2016 6Technidex Capital Advisors
-
1,000
2,000
3,000
4,000
5,000
6,000
-
6,000
12,000
18,000
24,000
30,000
36,000
1-Jan-06
1-Apr-06
1-Jul-06
1-Oct-06
1-Jan-07
1-Apr-07
1-Jul-07
1-Oct-07
1-Jan-08
1-Apr-08
1-Jul-08
1-Oct-08
1-Jan-09
1-Apr-09
1-Jul-09
1-Oct-09
1-Jan-10
1-Apr-10
1-Jul-10
1-Oct-10
1-Jan-11
1-Apr-11
1-Jul-11
1-Oct-11
1-Jan-12
1-Apr-12
1-Jul-12
1-Oct-12
1-Jan-13
1-Apr-13
1-Jul-13
1-Oct-13
1-Jan-14
1-Apr-14
1-Jul-14
1-Oct-14
1-Jan-15
1-Apr-15
1-Jul-15
1-Oct-15
1-Jan-16
Nifty50IndexFuturevalue
AveDailyTurnover(Rs.Crore)
as on March 31, 2016
Why another instrument to representWhy another instrument to represent
futures segment when we havefutures segment when we havefutures segment when we havefutures segment when we have
Nifty 50 Index Futures?Nifty 50 Index Futures?
April 1, 2016 7Technidex Capital Advisors
Nifty 50 - A loose fit
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan-06
Mar-06
May-06
Jul-06
Sep-06
Nov-06
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
Turnover(Rs.Crore)
Average Daily Turnover
Nifty 50 Stocks Future Turnover Nifty 50 Index Futures Turnover Total Stock Future Turnover
April 1, 2016 8Technidex Capital Advisors
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jan-06
Mar-06
May-06
Jul-06
Sep-06
Nov-06
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
OpenInterestValue(Rs.Crore)
Average Daily Open Interest Value
Nifty 50 Stocks Future OI Value Nifty 50 Index Futures OI Val Total Stock Future OI Value
as on March 31, 2016
Open Interest weight ≠ Free-float market cap weight
Weight mismatch of Nifty 50 components
Component
OI Weight
(TOP 50)
Weight in
Nifty 50
Excess
Weight
INFY 3.82% 8.78% 4.96%
ITC 2.73% 6.66% 3.93%
HDFC 3.41% 6.30% 2.89%
HINDUNILVR 0.00% 2.24% 2.24%
TCS 2.97% 4.84% 1.87%
Weight mismatch of Nifty 50 sectors
Sector
OI Weight
(TOP 50)
Weight in
Nifty 50
Excess
Weight
IT Services 9.09% 17.65% 8.56%
Tobacco 2.73% 6.66% 3.93%
Construction
Materials
0.90% 3.19% 2.29%
Household Products 0.00% 2.24% 2.24%
Electric Utilities 0.00% 1.52% 1.52%TCS 2.97% 4.84% 1.87%
Component
OI Weight
(TOP 50)
Weight in
Nifty 50
Under
Weight
ADANIPORTS 2.48% 0.81% -1.67%
BANKBARODA 1.93% 0.50% -1.43%
AXISBANK 4.02% 2.67% -1.35%
TATASTEEL 2.07% 0.77% -1.30%
MARUTI 2.93% 1.78% -1.15%
April 1, 2016 9Technidex Capital Advisors
as on March 31, 2016
Electric Utilities 0.00% 1.52% 1.52%
Sector
OI Weight
(TOP 50)
Weight in
Nifty 50
Under
Weight
Metals & Mining 6.91% 1.54% -5.37%
Pharmaceuticals 11.31% 6.78% -4.53%
Machinery 2.82% 0.00% -2.82%
Wireless Telecom
Services
4.79% 2.16% -2.63%
Diversified Financial
Services
1.78% 0.00% -1.78%
TechnidexTechnidex
Stock Futures Indexes©Stock Futures Indexes©
April 1, 2016 10Technidex Capital Advisors
The first Stock Futures Open Interest based Indexes…
Stock Futures Index vs Index Futures
3,000
3,500
4,000
4,500
Index Performance
Technidex Stock Futures Index© Technidex Underlying Stock Index©
Normalized Nifty 50 Index Future Normalized Nifty 50
Technidex Stock Futures Index: CAGR of 13.12% since Jan 2, 2006
April 1, 2016 11Technidex Capital Advisors
500
1,000
1,500
2,000
2,500
3,000
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Nifty 50 Index Future: CAGR of 10.35% since Jan 2, 2006
as on March 31, 2016
TOP 50 OPEN INTEREST VALUE subject to: NO RESTRICTION on:
TechnidexTechnidex
Stock Futures Index©
The first Stock Futures’ Open Interest based Index…
Highest
from TOP 55
100%
Trading
history
High
liquidity
Individual
Weight
Sector
Weight
based on Technidex Methodology© decided by market forces
April 1, 2016 12Technidex Capital Advisors
Technidex Stock Futures Index - A better fit
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan-06
Mar-06
May-06
Jul-06
Sep-06
Nov-06
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
Turnover(Rs.Crore)
Average Daily Turnover
Technidex Stock Futures Index Turnover Nifty 50 Stocks Future Turnover Nifty 50 Index Futures Turnover Total Stock Future Turnover
April 1, 2016 13Technidex Capital Advisors
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jan-06
Mar-06
May-06
Jul-06
Sep-06
Nov-06
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
Turnover(Rs.Crore)
Average Daily Open Interest Value
Technidex Stock Futures Index OI Value Nifty 50 Stocks Future OI Value Nifty 50 Index Futures OI Val Total Stock Future OI Value
as on March 31, 2016
Represent
Technidex Stock Futures Index vs Nifty 50
Basis Variables
Index value
Market
Capitalization
Review
Stock Futures
Vs
Underlying Index
Open Interest
Vs
Free Float Mkt Cap
All Dynamic variables
Vs
Partially Static variables
Single Value
Vs
One for each series
Multi Cap
Vs
Large Cap
Quarterly Review
Vs
Half Yearly Review
Quarterly
Rolling Return*
Yearly
Rolling Return*
April 1, 2016 14Technidex Capital Advisors
Stock Futures
Turnover
(50 stocks)
Spot Turnover
(50 stocks)
Stock Futures Open
Interest
(50 stocks)
Monthly
Rolling Return*
One for each series Large Cap Half Yearly Review
Stock Futures
Turnover
Higher by 15%
Spot (underlying)
Turnover
Higher by 10%
Stock Futures
Open Interest
Higher by 16%
Rolling Monthly
returns
1.44% Vs 1.08%
Rolling Quarterly
Returns
4.40% Vs 3.21%
Rolling Yearly
Returns
17.13% Vs 11.92%
*Since 2006
Outperformer
Index Name
Jan 2
2006
Mar 31
2016
Absolute
Change
%
Change
Technidex Stock
Futures Index©
performance
Technidex Stock Futures Index© 1000 3539 2539 253.9%
Technidex Underlying Stock Index© 1000 3627 2627 262.7%
Nifty 50 Future 2820 7740 4921 174.5% 79.4%
Nifty 50 2836 7738 4902 172.9% 81.0%
Nifty Next 50 5553 18757 13203 237.8% 16.1%
Nifty Midcap 50 1797 3201 1404 78.1% 175.7%
April 1, 2016 15Technidex Capital Advisors
Nifty Small Cap 2218 4885 2667 120.2% 133.6%
Nifty 100 2782 7832 5050 181.5% 72.3%
Nifty 200 1546 4051 2505 162.0% 91.8%
Nifty 500 2464 6452 3988 161.8% 92.0%
S&P BSE Sensex 9390 25342 15952 169.9% 84.0%
S&P BSE Midcap 4485 10619 6134 136.8% 117.1%
S&P BSE Small cap 6028 10542 4514 74.9% 179.0%
S&P BSE 100 2872 7835 4963 172.8% 81.0%
S&P BSE 200 1187 3259 2072 174.5% 79.3%
S&P BSE 500 3805 10185 6380 167.7% 86.2%
as on March 31, 2016
What next?
Technidex
Stock Futures Index ©
Potential Listing on Bourses
SGX
NSE
BSE
Global Participants
April 1, 2016 16Technidex Capital Advisors
Subscription
Global Participants
Domestic Participants
• With their unique Construction & Computation Methodology (© 2012), Technidex Stock Futures Indexes are most
ideal for listing on Global & Domestic Stock Excanges;
• Technidex Stock Future Indexes© superior performance (compared to NSE & BSE indexes) across time
horizons, stable share-holder profile and highly liquid index components will generate interest from Long Only
Funds, Hedge Funds, Alternate Investment Funds, Arbitrage Funds, investors, traders, brokers & intermediaries.
Beneficiaries
Funds / Investors / Traders
Stable Share Holding Pattern =
Investors / Long Funds delight
Higher Volatility =
Traders / Alternate Funds delight
CoC & Delivery Indicators =
Arbitrage & Hedge Funds delight
April 1, 2016 17Technidex Capital Advisors
Market Participants
Brokers
Diversification of Clientele =
Increased Clients
Increased Business =
Increased Revenue
Stock Exchanges
Higher Turnover =
Higher Revenue
Disclaimer
The information contained in this presentation is for general information purposes only “as is” basis without any representations or warranties. While we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the
completeness, accuracy, reliability, suitability or availability with respect to the presentation or the information, products, services, or related graphics contained on the presentation for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this presentation.
Through this presentation you may be able to link to other presentations which are not under the control of Technidex. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed
within them.
This presentation and its contents is copy right of Technidex. All rights reserved.
Without prejudice to the generality of the foregoing paragraph, Technidex and its group companies, directors, employees, affiliates and associates state that:
The information analysis given in this presentation is purely an interpretation / view of the author and Technidex and its group companies, directors, employees, affiliates and associates and or Technidex shall not be liable or responsible in any manner whatsoever for the trades executed by the recipient
on the basis of these reports;
Any comparative indices that are made available in the presentation are mere indicators and are in no manner meant to reflect or influence the buying decision of the recipients. Technidex and its group companies, directors, employees, affiliates and associates do not in any manner whatsoever verify or
vouch for the accuracy or authenticity of the results;
Nothing on this presentation constitutes, or is meant to constitute, advice of any kind. If you require advice in relation to any investments, legal, financial, medical matters or any other matters, you should consult an appropriate professional;
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. No assurance can be given that the firm’s investment objective will be achieved or that an investor will receive a return of all or any portion of his or her investment. Investment results may vary substantially over any given time
period. All investments involve the risk of loss;
The Presentation does not constitute an offer or solicitation for the purchase or sale of any security / financial instrument. Technidex and its group companies, directors, employees, affiliates and associates shall not be in any way responsible for any loss or damage that may arise to any person from any
inadvertent error in the information contained in this presentation. The documents / reports / research analysis are provided for assistance only and are not intended to be and must not alone be taken as the basis for any decision. The recipient assumes the entire risk of any use made of this
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distribution of this presentation in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe, any such restrictions. The information given in this presentation is as of the date and time of the documents / reports /
research analysis and there can be no assurance that future results or events will be consistent with this information. The information is subject to change without any prior notice. Technidex and its group companies, directors, employees, affiliates and associates reserve the right to make modifications
and alterations to this presentation as may be required from time to time. However, Technidex and its group companies, directors, employees, affiliates and associates are under no obligation to update or keep the information current. Neither Technidex nor any of its affiliates, group
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the copyright holders.
Limitations of liabilityLimitations of liability
Technidex will not be liable to you (whether under the law of contact, the law of torts or otherwise) in relation to the contents of, or use of, or otherwise in connection with, this presentation:
• for any indirect, special or consequential loss; or
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• These limitations of liability apply even if Technidex has been expressly advised of the potential loss.
Reasonableness
By using this presentation, you agree that the exclusions and limitations of liability set out in this presentation disclaimer are reasonable. If you do not think they are reasonable, you must not use this presentation.
Other parties
You accept that, as a limited liability entity, Technidex has an interest in limiting the personal liability of its officers and employees. You agree that you will not bring any claim personally against Technidex officers or employees in respect of any losses you suffer in connection with the presentation.
Without prejudice to the foregoing paragraph, you agree that the limitations of warranties and liability set out in this presentation disclaimer will protect Technidex and its group companies, directors, employees, affiliates and associates.
Unenforceable provisions
If any provision of this presentation disclaimer is, or is found to be, unenforceable under applicable law, that will not affect the enforceability of the other provisions of this presentation disclaimer.
Jurisdiction:
Your use of this presentation and any dispute arising out of such use of the presentation is subject to the laws of India. You hereby consent to the exclusive jurisdiction and venue of courts in Mumbai, Maharashtra, India in all disputes arising out of or relating to the use of this Presentation. Use of this
presentation is unauthorized in any jurisdiction that does not give effect to all provisions of these terms and conditions, including without limitation this paragraph.
Additional Disclaimer for U.S. Persons:
Technidex is not a registered broker – dealer under the U.S. Securities Exchange Act of 1934, as amended (the“1934 act”) and under applicable state laws in the United States. In addition Technidex is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the
“Advisers Act” and together with the 1934 Act, the “Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Technidex, including the products and services described herein are not
available to or intended for U.S. persons.
This presentation and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. “U.S. Persons” are generally defined as a natural
person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed “US Persons” under certain rules.
April 1, 2016 18Technidex Capital Advisors
Navin B Agrawal
Technidex Capital Advisors
905-A “RNA Heights”
J V Link Road, Andheri East
CONTACT
Mumbai 400071, INDIA
+91 98200 27446 | Navin@Technidex.in | www.Technidex.in
Technidex Stock Futures Indexes© are owned & managed by Technidex Capital Advisors
Technidex Stock Futures Indexes Construction & Computation Methodology © 2012
All Contents © 2012

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Technidex Stock Futures Index - Presentation

  • 1. Technidex Stock Futures Index © The first Stock Futures Open Interest based Index… Technidex Capital Advisors April 1, 2016
  • 2. • The terms "benchmarks" and "indexes" are often used interchangeably, but they are actually unique terms that describe different things. All indexes are defined by their objectives and methodologies, which together determine their relative strengths. A benchmark is something that serves as a standard by which others are measured. A good index has a well-defined objectives and a methodology that best satisfies that objective. The methodology should be rule based and transparent. • The derivatives market is, in a word, gigantic, often estimated at more that $1.2 quadrillion. Some market analysts estimate the derivatives market at more than 10 times the size of the total world GDP. Introduction analysts estimate the derivatives market at more than 10 times the size of the total world GDP. • Technidex Capital Advisors owned Technidex Stock Future Indexes© (© 2012) are the first ever indexes to be based on the Open Interest of stock futures. They are an ideal bench-mark for tradable exposure to Indian stock futures & their underlying stocks. • Technidex Stock Future Indexes© (© 2012) are completely market driven and reflect the sentiment much better than any other index on real-time basis as they simultaneously take into account the price movement, volumes & open interest of all active future contacts of the constituents, making them an attractive derivative instrument for listing on Stock Exchanges. April 1, 2016 2Technidex Capital Advisors
  • 3. Nifty 50 Index Future: 10 year journey… 7,500 8,500 9,500 Nifty 50 Spot & Future Index movement Nifty 50 Index Future Nifty 50 CAGR of 10.35% since Jan 2, 2006 April 1, 2016 3Technidex Capital Advisors 2,500 3,500 4,500 5,500 6,500 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 IndexValue as on March 31, 2016
  • 4. Open Interest: over 3x 6,000 7,000 8,000 9,000 10,000 42,000 49,000 56,000 63,000 70,000 AveDailyOpenInterestValue(Rs.Crore) Average daily Open Interest Value of Stock Futures Total Stock Future OI Value Nifty 50 Index Future April 1, 2016 4Technidex Capital Advisors - 1,000 2,000 3,000 4,000 5,000 6,000 0 7,000 14,000 21,000 28,000 35,000 42,000 1-Jan-06 1-Apr-06 1-Jul-06 1-Oct-06 1-Jan-07 1-Apr-07 1-Jul-07 1-Oct-07 1-Jan-08 1-Apr-08 1-Jul-08 1-Oct-08 1-Jan-09 1-Apr-09 1-Jul-09 1-Oct-09 1-Jan-10 1-Apr-10 1-Jul-10 1-Oct-10 1-Jan-11 1-Apr-11 1-Jul-11 1-Oct-11 1-Jan-12 1-Apr-12 1-Jul-12 1-Oct-12 1-Jan-13 1-Apr-13 1-Jul-13 1-Oct-13 1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15 1-Apr-15 1-Jul-15 1-Oct-15 1-Jan-16 Nifty50Future AveDailyOpenInterestValue(Rs.Crore) as on March 31, 2016
  • 5. Turnover: Derivative Segment drives market sentiment 6,000 7,000 8,000 9,000 10,000 210,000 245,000 280,000 315,000 350,000 Nifty50Future AveDailyTurnover(Rs.Crore) Average Daily Turnover vs Nifty 50 movement NSE Equity Turnover NSE F&O Turnover Total NSE Turnover Nifty 50 Index Future April 1, 2016 5Technidex Capital Advisors - 1,000 2,000 3,000 4,000 5,000 6,000 - 35,000 70,000 105,000 140,000 175,000 210,000 1-Jan-06 1-Apr-06 1-Jul-06 1-Oct-06 1-Jan-07 1-Apr-07 1-Jul-07 1-Oct-07 1-Jan-08 1-Apr-08 1-Jul-08 1-Oct-08 1-Jan-09 1-Apr-09 1-Jul-09 1-Oct-09 1-Jan-10 1-Apr-10 1-Jul-10 1-Oct-10 1-Jan-11 1-Apr-11 1-Jul-11 1-Oct-11 1-Jan-12 1-Apr-12 1-Jul-12 1-Oct-12 1-Jan-13 1-Apr-13 1-Jul-13 1-Oct-13 1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15 1-Apr-15 1-Jul-15 1-Oct-15 1-Jan-16 Nifty50Future AveDailyTurnover(Rs.Crore) as on March 31, 2016
  • 6. Turnover: Stock futures fuel the rally 6,000 7,000 8,000 9,000 10,000 36,000 42,000 48,000 54,000 60,000 IndexFuturevalue AveDailyTurnover(Rs.Crore) Average Daily Turnover vs Nifty 50 movement Nifty 50 Index Future Turnover NSE 50 Stock Futures Turnover Nifty 50 Index Future April 1, 2016 6Technidex Capital Advisors - 1,000 2,000 3,000 4,000 5,000 6,000 - 6,000 12,000 18,000 24,000 30,000 36,000 1-Jan-06 1-Apr-06 1-Jul-06 1-Oct-06 1-Jan-07 1-Apr-07 1-Jul-07 1-Oct-07 1-Jan-08 1-Apr-08 1-Jul-08 1-Oct-08 1-Jan-09 1-Apr-09 1-Jul-09 1-Oct-09 1-Jan-10 1-Apr-10 1-Jul-10 1-Oct-10 1-Jan-11 1-Apr-11 1-Jul-11 1-Oct-11 1-Jan-12 1-Apr-12 1-Jul-12 1-Oct-12 1-Jan-13 1-Apr-13 1-Jul-13 1-Oct-13 1-Jan-14 1-Apr-14 1-Jul-14 1-Oct-14 1-Jan-15 1-Apr-15 1-Jul-15 1-Oct-15 1-Jan-16 Nifty50IndexFuturevalue AveDailyTurnover(Rs.Crore) as on March 31, 2016
  • 7. Why another instrument to representWhy another instrument to represent futures segment when we havefutures segment when we havefutures segment when we havefutures segment when we have Nifty 50 Index Futures?Nifty 50 Index Futures? April 1, 2016 7Technidex Capital Advisors
  • 8. Nifty 50 - A loose fit 0 10,000 20,000 30,000 40,000 50,000 60,000 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Turnover(Rs.Crore) Average Daily Turnover Nifty 50 Stocks Future Turnover Nifty 50 Index Futures Turnover Total Stock Future Turnover April 1, 2016 8Technidex Capital Advisors Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 OpenInterestValue(Rs.Crore) Average Daily Open Interest Value Nifty 50 Stocks Future OI Value Nifty 50 Index Futures OI Val Total Stock Future OI Value as on March 31, 2016
  • 9. Open Interest weight ≠ Free-float market cap weight Weight mismatch of Nifty 50 components Component OI Weight (TOP 50) Weight in Nifty 50 Excess Weight INFY 3.82% 8.78% 4.96% ITC 2.73% 6.66% 3.93% HDFC 3.41% 6.30% 2.89% HINDUNILVR 0.00% 2.24% 2.24% TCS 2.97% 4.84% 1.87% Weight mismatch of Nifty 50 sectors Sector OI Weight (TOP 50) Weight in Nifty 50 Excess Weight IT Services 9.09% 17.65% 8.56% Tobacco 2.73% 6.66% 3.93% Construction Materials 0.90% 3.19% 2.29% Household Products 0.00% 2.24% 2.24% Electric Utilities 0.00% 1.52% 1.52%TCS 2.97% 4.84% 1.87% Component OI Weight (TOP 50) Weight in Nifty 50 Under Weight ADANIPORTS 2.48% 0.81% -1.67% BANKBARODA 1.93% 0.50% -1.43% AXISBANK 4.02% 2.67% -1.35% TATASTEEL 2.07% 0.77% -1.30% MARUTI 2.93% 1.78% -1.15% April 1, 2016 9Technidex Capital Advisors as on March 31, 2016 Electric Utilities 0.00% 1.52% 1.52% Sector OI Weight (TOP 50) Weight in Nifty 50 Under Weight Metals & Mining 6.91% 1.54% -5.37% Pharmaceuticals 11.31% 6.78% -4.53% Machinery 2.82% 0.00% -2.82% Wireless Telecom Services 4.79% 2.16% -2.63% Diversified Financial Services 1.78% 0.00% -1.78%
  • 10. TechnidexTechnidex Stock Futures Indexes©Stock Futures Indexes© April 1, 2016 10Technidex Capital Advisors The first Stock Futures Open Interest based Indexes…
  • 11. Stock Futures Index vs Index Futures 3,000 3,500 4,000 4,500 Index Performance Technidex Stock Futures Index© Technidex Underlying Stock Index© Normalized Nifty 50 Index Future Normalized Nifty 50 Technidex Stock Futures Index: CAGR of 13.12% since Jan 2, 2006 April 1, 2016 11Technidex Capital Advisors 500 1,000 1,500 2,000 2,500 3,000 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Nifty 50 Index Future: CAGR of 10.35% since Jan 2, 2006 as on March 31, 2016
  • 12. TOP 50 OPEN INTEREST VALUE subject to: NO RESTRICTION on: TechnidexTechnidex Stock Futures Index© The first Stock Futures’ Open Interest based Index… Highest from TOP 55 100% Trading history High liquidity Individual Weight Sector Weight based on Technidex Methodology© decided by market forces April 1, 2016 12Technidex Capital Advisors
  • 13. Technidex Stock Futures Index - A better fit 0 10,000 20,000 30,000 40,000 50,000 60,000 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Turnover(Rs.Crore) Average Daily Turnover Technidex Stock Futures Index Turnover Nifty 50 Stocks Future Turnover Nifty 50 Index Futures Turnover Total Stock Future Turnover April 1, 2016 13Technidex Capital Advisors 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Turnover(Rs.Crore) Average Daily Open Interest Value Technidex Stock Futures Index OI Value Nifty 50 Stocks Future OI Value Nifty 50 Index Futures OI Val Total Stock Future OI Value as on March 31, 2016
  • 14. Represent Technidex Stock Futures Index vs Nifty 50 Basis Variables Index value Market Capitalization Review Stock Futures Vs Underlying Index Open Interest Vs Free Float Mkt Cap All Dynamic variables Vs Partially Static variables Single Value Vs One for each series Multi Cap Vs Large Cap Quarterly Review Vs Half Yearly Review Quarterly Rolling Return* Yearly Rolling Return* April 1, 2016 14Technidex Capital Advisors Stock Futures Turnover (50 stocks) Spot Turnover (50 stocks) Stock Futures Open Interest (50 stocks) Monthly Rolling Return* One for each series Large Cap Half Yearly Review Stock Futures Turnover Higher by 15% Spot (underlying) Turnover Higher by 10% Stock Futures Open Interest Higher by 16% Rolling Monthly returns 1.44% Vs 1.08% Rolling Quarterly Returns 4.40% Vs 3.21% Rolling Yearly Returns 17.13% Vs 11.92% *Since 2006
  • 15. Outperformer Index Name Jan 2 2006 Mar 31 2016 Absolute Change % Change Technidex Stock Futures Index© performance Technidex Stock Futures Index© 1000 3539 2539 253.9% Technidex Underlying Stock Index© 1000 3627 2627 262.7% Nifty 50 Future 2820 7740 4921 174.5% 79.4% Nifty 50 2836 7738 4902 172.9% 81.0% Nifty Next 50 5553 18757 13203 237.8% 16.1% Nifty Midcap 50 1797 3201 1404 78.1% 175.7% April 1, 2016 15Technidex Capital Advisors Nifty Small Cap 2218 4885 2667 120.2% 133.6% Nifty 100 2782 7832 5050 181.5% 72.3% Nifty 200 1546 4051 2505 162.0% 91.8% Nifty 500 2464 6452 3988 161.8% 92.0% S&P BSE Sensex 9390 25342 15952 169.9% 84.0% S&P BSE Midcap 4485 10619 6134 136.8% 117.1% S&P BSE Small cap 6028 10542 4514 74.9% 179.0% S&P BSE 100 2872 7835 4963 172.8% 81.0% S&P BSE 200 1187 3259 2072 174.5% 79.3% S&P BSE 500 3805 10185 6380 167.7% 86.2% as on March 31, 2016
  • 16. What next? Technidex Stock Futures Index © Potential Listing on Bourses SGX NSE BSE Global Participants April 1, 2016 16Technidex Capital Advisors Subscription Global Participants Domestic Participants • With their unique Construction & Computation Methodology (© 2012), Technidex Stock Futures Indexes are most ideal for listing on Global & Domestic Stock Excanges; • Technidex Stock Future Indexes© superior performance (compared to NSE & BSE indexes) across time horizons, stable share-holder profile and highly liquid index components will generate interest from Long Only Funds, Hedge Funds, Alternate Investment Funds, Arbitrage Funds, investors, traders, brokers & intermediaries.
  • 17. Beneficiaries Funds / Investors / Traders Stable Share Holding Pattern = Investors / Long Funds delight Higher Volatility = Traders / Alternate Funds delight CoC & Delivery Indicators = Arbitrage & Hedge Funds delight April 1, 2016 17Technidex Capital Advisors Market Participants Brokers Diversification of Clientele = Increased Clients Increased Business = Increased Revenue Stock Exchanges Higher Turnover = Higher Revenue
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April 1, 2016 18Technidex Capital Advisors
  • 19. Navin B Agrawal Technidex Capital Advisors 905-A “RNA Heights” J V Link Road, Andheri East CONTACT Mumbai 400071, INDIA +91 98200 27446 | Navin@Technidex.in | www.Technidex.in Technidex Stock Futures Indexes© are owned & managed by Technidex Capital Advisors Technidex Stock Futures Indexes Construction & Computation Methodology © 2012 All Contents © 2012