The combined average daily turnover of the BSE and NSE hit its lowest point at Rs 72,512 crore, a 20 percent drop from the previous month, marking the largest decrease since June 2022. This is the first month-to-month decline since March 2023.
What looks like an easy arbitrage borrowing at 8.5 percent and investing at 12 percent is not so clear-cut. The transaction may work out in case equities give phenomenal returns, but one cannot go with such assumptions.
A simple call option can be managed with a stop loss and revision of the same during the tenure of the trade, however, with a synthetic call we can do a little more