US Indices, Dow Jones (DJIA) and S&P 500, to be traded in India



Now trade in US markets from India. The Dow Jones Industrial Average (DJIA) and the S&P 500 would start trading from tomorrow on the National Stock Exchange (NSE). Trading would begin tomorrow in futures contracts on both the indices and options contracts on the S&P 500 index.

The S&P 500 is an index of the 500 leading companies of the US economy, while the DJIA comprises of the 30-most liquid blue-chip companies based in the United States.

This is the first time that derivative contracts on global indices are being launched in India. This is also the first time in the world that futures contracts on the S&P 500 index are being introduced and listed on an exchange outside of their home country, the US.

In order to encourage active participation in trading of these indices, the NSE has decided that it will not levy any transaction charges on trades done till February 29, 2012.

The contracts would be rupee-denominated and would be traded during Indian market hours.

The NSE has said that all the member brokers of its equity derivatives segment would be able to trade in this product for themselves and their clients.

The movements in these indices might not be affected by the economic and market trends in India and therefore, these indices can help the investors reap some benefits even in times of losses in Indian markets, provided there are favourable trends in the US markets, market experts said.



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