Home » NSE Expiry Impacts BSE Market.

NSE Expiry Impacts BSE Market.

This image is about NSE Expiry impacts BSE Market

Nifty Bank makes up 50% of NSE option volumes and 60% across three expiries, according to IIFL Securities.

This image is about nse new rule regarding expiry

The NSE announced that from November 20, 2024, it will discontinue weekly derivative contracts for Nifty Bank, Nifty Midcap, and Nifty Financial Services, converting them to monthly contracts instead.

This change was made to follow the market regulator’s directive to streamline weekly contracts. SEBI has instructed that there should only be one weekly expiry per index.

As a result, the Nifty 50 will be the sole index available for weekly expiry contracts. The last weekly contract for the Nifty Bank will trade on November 13, while the Midcap index and Financial Services index will see their last contracts on November 18 and November 19, 2024, respectively.

In a note from July 31, IIFL Securities pointed out that the Nifty Bank accounts for 50% of NSE option premium volumes and is the largest contract on the NSE. Its impact is noted at 60% across three expiries.

The brokerage estimates that the net impact on NSE’s full-year volumes will be around 30% to 35%.

In a recent interview with CNBC-TV18, Rajesh Baheti from Crossseas Capital Services stated that choosing Nifty as the weekly product could result in a 35% to 40% drop in NSE’s revenue, while opting for Nifty Bank could lead to a 15% to 20% decline.

But does this situation benefit NSE’s competitor, BSE?

BSE’s options tariffs are 7% lower than those of NSE, potentially accelerating market share gains for BSE. Earlier this month, BSE announced it would discontinue weekly index derivatives contracts on the Sensex 50 starting November 14, and on the Bankex from November 18, 2024.

BSE shares are currently trading 1.7% higher at ₹4,287, having reached an intraday high of ₹4,350. The stock has risen 94% so far in 2024, after hitting a record high of ₹4,395.

Power of Algorithms in Options Trading, Try Spider Now: Register Now

If you’d like to know how we analyze the market and provide accurate levels every day. then click on the Free Demo button below and change your trading life for good. 5X returns are possible in options trading If you have Spider Software in your trading system.

Disclaimer: The information provided in this Blog is for educational purposes only and should not be construed as financial advice. Trading in the stock market involves a significant level of risk and can result in both profits and losses. Spider Software & Team does not guarantee any specific outcome or profit from the use of the information provided in this Blog. It is the sole responsibility of the viewer to evaluate their own financial situation and to make their own decisions regarding any investments or trading strategies based on their individual financial goals, risk tolerance, and investment objectives. Spider Software & Team shall not be liable for any loss or damage, including without limitation any indirect, special, incidental or consequential loss or damage, arising from or in connection with the use of this blog or any information contained herein.

Leave a Reply

Your email address will not be published. Required fields are marked *