What this exercise does, when done consistently, is to establish an energy circuit within the hand chakras. This energy can be used for healing, opening other chakras, applying energy or, as with Dim Mak, the "death touch." It also helps with telekinesis (moving objects with one's mind) and pyrokinesis (setting objects on fire using the powers of the mind and aura). In order to advance with these gifts, a powerful aura is needed to act on the auras of objects.
This exercise should be done at least once a day to get your energy flowing freely through your hand chakras.