Shares of BSE Ltd declined sharply by 8.53% to ₹4,073.85 in Tuesday’s session after the National Stock Exchange (NSE) announced the shift of weekly and monthly options expiry to Monday. The stock saw a steep drop from its previous close of ₹4,453.65, with an intraday low of ₹4,067.05.
In a major change for traders and investors, the National Stock Exchange (NSE) has revised the expiry days for all weekly and monthly derivatives contracts, shifting them from Thursday to Monday. The changes will come into effect from April 4, 2025, with the last contracts under the old schedule expiring on April 3, 2025 (EOD).
Key Changes in Expiry Days:
- NIFTY Weekly Contracts – Now expire on Monday instead of Thursday.
- NIFTY Monthly, Quarterly, and Half-Yearly Contracts – Expiry moved from Thursday to Monday.
- BANKNIFTY Monthly & Quarterly Contracts – Expiry changed from Last Thursday to Last Monday of the month.
- FINNIFTY, MIDCPNIFTY, and NIFTYNXT50 Monthly Contracts – Expiry moved from Last Thursday to Last Monday of the month.
- Stock Derivatives (All Monthly Contracts) – Now expire on Monday instead of Thursday.
According to a sales note from Motilal Oswal Securities Ltd (MOSL), the shift in expiry could significantly impact BSE’s market share, as trading volumes may migrate to NSE. Historically, BSE’s average market share on Mondays has been around 20-22%, while on Fridays it has ranged between 15-17%. With the expiry now moving to Monday, a notable portion of these volumes could shift towards NSE, potentially reducing BSE’s trading activity and liquidity in the derivatives segment.
According to market experts, this move by NSE is seen as a strategy to capture more trading volumes and potentially weaken BSE’s derivatives market position. Currently, options traders sell Sensex (Out-the-Money) options on Friday to take advantage of premium decay, later shifting focus to Nifty options. However, with Nifty expiry now set for Monday, traders will have only a single day left, as BSE made a similar change to its derivative contracts’ expiry dates to Tuesday from January 1, making it less viable to sell Sensex options due to already decayed premiums a day before expiry.
This structural shift could reduce trading activity on BSE’s derivatives segment, impacting the exchange’s revenue and market share in the options trading segment.
Stock performance:
- Current price: ₹4,073.85 (-8.53%)
- Previous close: ₹4,453.65
- Day’s range: ₹4,067.05 – ₹4,300.00
- Market cap: ₹55,371 crore
- 52-week range: ₹1,941.05 – ₹6,133.40
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