In response to an ET report, fairness derivatives turnover on the NSE and BSE fell to multi-month lows in August, with analysts attributing the decline to heightened volatility beneath the brand new Closing Public sale Session (CAS) mechanism. The volatility prompted a number of market contributors to cut back derivatives exercise, notably in the course of the closing half-hour of buying and selling.
Additionally Learn |NSE, BSE equity derivatives turnover hits multi-month low in August amid CAS volatility
“The decline in derivatives volumes is basically a results of the behavioural modifications triggered by CAS,” mentioned Rajesh Palviya, head of analysis, Axis Securities.
As of August 2026, the BSE’s fairness by-product turnover stood at Rs 32.2 lakh crore, making it the bottom degree since June 2025. Within the case of NSE, the entire month-to-month fairness by-product turnover was recorded at Rs 34.48 lakh crore, which is the bottom degree since November 2023.
In response to a report by Jefferies, August 2026 was dominated by expiry-day volatility following the introduction of CAS which has adversely impacted fairness choices turnover and contracts, which is adverse for BSE and Groww.
Palviya additionally mentioned that because the CAS was launched, brokers have been squaring off positions earlier, round 3:05-3:10 pm, whereas merchants have additionally been closing positions forward of time to keep away from heightened volatility within the closing minutes of buying and selling.And this loss in volumes every day has compounded into a bigger decline in month-to-month turnovers.
The Jefferies report additionally famous that BSE’s common each day traded turnover (ADTO) stood at Rs 187 billion in August 2026, down 26% month-on-month, partly because of the affect of CAS and an extra expiry within the base. An choices dealer cited uncertainty on expiry days as a key problem beneath CAS, prompting choice writers to steer clear of the market.
CAS was applied in Indian markets from August this yr. It operates as a separate session of 20 minutes from 3.15 pm to three.35 pm, throughout which the change first collects purchase and promote orders after which matches them to find out a single official closing worth for the inventory.
Sebi Chairman Tuhin Kanta Pandey mentioned final week that he doesn’t foresee any modifications to the mechanism, anticipating participation to enhance as buyers turn out to be extra acquainted with the brand new course of.
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Mehul Kothari, deputy vice-president at Anand Rathi Share and Inventory Brokers mentioned the shift within the expiry-day buying and selling construction has lowered a number of the very short-term speculative exercise that was contributing considerably to choices volumes.
(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)
