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NSE chief blames volatility on cash-flush corporates

The present volatility in the Indian stock market was due to the involvement of rich corporate houses in the trading according to market feedback, National Stock Exchange Managing Director Dr R H Patil said today.

Patil delivered the keynote address at the "Service Quality -- A Conclave", organised by the Confederation of Indian Industry in Bangalore today.

He later told newsmen that several affluent corporate houses who were flush with money, have diverted it to the stock market. Further, more brokers were also involved in speculative trading resulting in the phenomenal rise of the stock market index in the recent time.

Asked whether the market would continue its boom, he said it was very difficult to predict now. ''The self-prediction and self-satisfaction among the brokering community and the traditional investors were also the reasons for the bull run of the stocks, particularly the infotech scrips.

Patil said derivative trading could be introduced any time. It would not be a surprise if it comes into being within a fortnight.

He said the National Stock Exchange would convert its index as one of the derivatives and the trading would be allowed in the index itself like a normal corporate scrip. The permission for it from the Securities and Exchanges Board of India had already been received, he added.

UNI

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