Volatility of Indian Capital Markets on Derivatives Expiration Day
Derivatives are the backbone of any financial system and studying the effects of their expiration days can significantly improve our understanding of financial markets. The main aim of this paper is to analyse the effect of expiration day of derivatives on returns and volume of trade. For this purpose, historical data of the S & P CNX Nifty index and volume of trade is taken for a period from 1st January, 2015 to 30th June, 2019. The result shows that the expiration dates do not have a significant effect on returns and volume of trade. This conclusion throws light on the functioning of the markets and can help the different stakeholders make appropriate investment decision. By providing information on the market behaviour and improving the quality of investment information, this paper can help investors take the right decisions with respect to their investments and can improve the quality of investments made in the market.