Haitong Securities has reported that the turnover across both BSE and NSE has seen a month-on-month (MoM) decline in November 2024, driven by new SEBI measures, including raising contract sizes and rationalizing derivative products.
Key Highlights:
Derivatives Segment:
- Equity F&O Turnover: Overall industry equity F&O ADTO dropped 15% MoM, reaching Rs 442 trillion in November compared to Rs 519 trillion in October.
- Number of Trades: Industry-wide equity F&O daily trade volume fell by 12% MoM.
- Notional Ticket Size: The average notional ticket size per contract declined by 3% MoM despite higher lot sizes mandated under SEBI’s new rules.
Index Options Hit the Hardest:
- MoM Decline by Exchange: BSE recorded an 11% decline, while NSE reported a sharper 16% drop in F&O ADTO.
- Segment Analysis: NSE index futures ADTO fell by 4% MoM, while stock and index options turnover witnessed a significant 16% decline.
Cash Segment:
- Equity Cash Turnover: Combined BSE and NSE equity cash ADTO dropped by 6% MoM to Rs 1.07 trillion in November from Rs 1.14 trillion in October.
- Trade Volume: The daily average number of trades in the cash segment fell to 40 million in November from 42 million in October.
- Historical Trend: This marks the fifth consecutive month of declining cash turnover, following the peak in June 2024 during the election results period.
Analysts’ View:
Haitong noted that the introduction of SEBI’s norms has significantly reduced turnover across segments. While trading volumes may remain subdued in the short term, analysts expect recovery as market participants adapt to the new regulatory environment. Brokers also anticipate that corrective price action and competitive fee reductions could aid in volume recovery in the months ahead.
