NSE, BSE derivatives volume rebounds in April–May, cools off in early June: ICICI Securities

The exchanges posted volume improvements in cash segment in April and May.

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Domestic exchanges, National Stock Exchange of India Ltd and BSE Ltd, are likely to see a more stable regulatory environment for exchanges going forward, after key regulations have been passed, noted ICICI Securities.

The New Equity Derivatives Framework set for November 2024, the New Risk Monitoring Framework for Equity Derivatives in May 2025, and the finalisation of equity derivative expiry in June 2025 signals stability going ahead, said the brokerage.

Further, the brokerage highlighted that exchange volume trends for Q1FY26 to date are showing improvement compared to the second half of FY25. Both NSE and BSE recorded a strong rebound in their F&O volumes in April and May 2025 following a subdued performance in the second half of FY25.

NSE’s options premium average daily traded value (ADTV) for April and May combined rose to Rs 589 billion, up 5 percent compared to H2FY25. BSE saw a sharper uptick, with its options premium ADTV rising 52.8 percent to Rs 157 billion over the same period.

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However, this momentum did not sustain into June. In the first two weeks of June 2025, NSE’s premium ADTV declined 18.7 percent month-on-month to Rs 485 billion, while BSE’s fell 12.8 percent to Rs 138 billion. Notional ADTV also saw a dip, NSE’s declined 7.1 percent to Rs 204 trillion, and BSE’s fell 4.5 percent to Rs 121 trillion.

On the cash segment side, both exchanges posted volume improvements in April and May. NSE’s cash ADTV rose 6.2 percent to Rs 1,060 billion, while BSE’s increased 10.7 percent to Rs 68 billion. This momentum extended into June, with NSE’s cash ADTV rising 4.9 percent month-on-month to Rs 1,165 billion and BSE’s jumping 16 percent to Rs 87 billion. However, current volumes remain nearly 25 percent below their June 2024 peak.

"As per the NSE Pulse report, the average trade size on premium basis for NSE index options has been increasing since the implementation of new regulations in November 2024," added the broking house. "Monthly participants in NSE equity derivatives segment increased to 3.31 million in April 25 after five consecutive months of decline. Participation still remains well below the highs of 5.26 million seen in June 2024."

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