{"id":5863,"date":"2011-06-24T18:36:14","date_gmt":"2011-06-24T13:06:14","guid":{"rendered":"index.php\/2011\/06\/24\/cashless-market\/"},"modified":"2011-06-24T18:36:14","modified_gmt":"2011-06-24T13:06:14","slug":"cashless-market","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2011\/06\/24\/cashless-market\/","title":{"rendered":"Cashless market?"},"content":{"rendered":"<div style=\"margin: 1em;width: 305px;float: left\" class=\"zemanta-img\"><a href=\"http:\/\/en.wikipedia.org\/wiki\/File:National_Stock_Exchange_of_India_Logo.svg\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: medium none;border-left: medium none;border-top: medium none;border-right: medium none\" alt=\"NSE Logo\" src=\"http:\/\/upload.wikimedia.org\/wikipedia\/en\/thumb\/6\/6d\/National_Stock_Exchange_of_India_Logo.svg\/295px-National_Stock_Exchange_of_India_Logo.svg.png\" width=\"295\" height=\"96\"><\/a>  <\/p>\n<p style=\"font-size: 0.8em\" class=\"zemanta-img-attribution\">Image via <a href=\"http:\/\/en.wikipedia.org\/wiki\/File:National_Stock_Exchange_of_India_Logo.svg\">Wikipedia<\/a><\/p>\n<\/div>\n<p>I recently posted a <a href=\"http:\/\/stockviz.biz\/index.php\/2011\/06\/21\/the-sensex-is-bipolar\/\" target=\"_blank\">link<\/a> to an <a class=\"zem_slink\" title=\"Financial Times\" href=\"http:\/\/www.ft.com\/\" rel=\"homepage\">FT.com<\/a> article that said that volume in the cash market has been dropping. I decided to do some digging myself to see how the trends are in the <a class=\"zem_slink\" title=\"National Stock Exchange of India\" href=\"http:\/\/maps.google.com\/maps?ll=19.0602777778,72.8597222222&amp;spn=0.01,0.01&amp;q=19.0602777778,72.8597222222 (National%20Stock%20Exchange%20of%20India)&amp;t=h\" rel=\"geolocation\">NSE<\/a>.<\/p>\n<p><a href=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image7.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px;padding-left: 0px;padding-right: 0px;border-top-width: 0px;border-bottom-width: 0px;border-left-width: 0px;padding-top: 0px\" border=\"0\" alt=\"image\" src=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image_thumb7.png\" width=\"606\" height=\"169\"><\/a><\/p>\n<p>Turns out, there is some truth to it. If you look at the value traded since 1995, it does look its flat lined.<\/p>\n<p>You see the crash of 2000 and the recovery in this chart:<\/p>\n<p><a href=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image8.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px;padding-left: 0px;padding-right: 0px;border-top-width: 0px;border-bottom-width: 0px;border-left-width: 0px;padding-top: 0px\" border=\"0\" alt=\"image\" src=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image_thumb8.png\" width=\"605\" height=\"169\"><\/a><\/p>\n<p>However, post-2005, it looks like there\u2019s been a very tepid bounce back in value traded (volume x price) and it has been dipping lately.<\/p>\n<p><a href=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image9.png\"><img loading=\"lazy\" decoding=\"async\" style=\"border-right-width: 0px;padding-left: 0px;padding-right: 0px;border-top-width: 0px;border-bottom-width: 0px;border-left-width: 0px;padding-top: 0px\" border=\"0\" alt=\"image\" src=\"http:\/\/stockviz.biz\/wp-content\/uploads\/2011\/06\/image_thumb9.png\" width=\"605\" height=\"169\"><\/a><\/p>\n<p>Doesn\u2019t bode well for the capital markets in general if everybody wants to be a derivatives trader. Ask the <a class=\"zem_slink\" title=\"Collateralized debt obligation\" href=\"http:\/\/en.wikipedia.org\/wiki\/Collateralized_debt_obligation\" rel=\"wikipedia\">CDO<\/a> bankers at <a class=\"zem_slink\" title=\"Merrill Lynch\" href=\"http:\/\/www.ml.com\/\" rel=\"homepage\">Merrill Lynch<\/a>!<\/p>\n<p>Source: <a href=\"https:\/\/datamarket.azure.com\/dataset\/6eeaed9e-0b2e-4ee6-832e-5dbe9cda7732\" target=\"_blank\">StockViz @ Microsoft Azure<\/a><\/p>\n<div style=\"margin-top: 10px;height: 15px\" class=\"zemanta-pixie\"><a class=\"zemanta-pixie-a\" title=\"Enhanced by Zemanta\" href=\"http:\/\/www.zemanta.com\/\"><img decoding=\"async\" style=\"border-bottom-style: none;border-left-style: none;border-top-style: none;float: right;border-right-style: none\" class=\"zemanta-pixie-img\" alt=\"Enhanced by Zemanta\" src=\"http:\/\/img.zemanta.com\/zemified_e.png?x-id=e722d66c-5157-441c-aa76-1f8328755df1\"><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Image via Wikipedia I recently posted a link to an FT.com article that said that volume in the cash market has been dropping. I decided to do some digging myself to see how the trends are in the NSE. Turns out, there is some truth to it. If you look at the value traded since &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[36],"class_list":["post-5863","post","type-post","status-publish","format-standard","hentry","category-your-money","tag-comment","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/5863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=5863"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/5863\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=5863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=5863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=5863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}