Derivatives continue to shine, cash average daily volume flat in August
MUMBAI: Exchange volumes declined sequentially for commodity segment in August while equity derivatives grew 6% and cash segment remained flat, according to data analysed by ICICI Securities.
In August, average daily trading volume (ADTV) was ₹62,900 crore on the NSE. This compares to an average of ₹70,400 crore between April-July. On BSE cash ADTV was down 6% month-on-month (m-o-m)to ₹5,200 crore. On annual basis, ADTVs on NSE and BSE were up 3% and 17% respectively, said ICICI Securities. NSE’s cash segment market share stood at 92% in August.
Impact of phase-3 of upfront margin norms was seen in cash and commodity segments, while derivatives volumes saw month-on-month growth, said ICICI Securities.
The Securities and Exchange Board of India (Sebi)’s new mandate in margin trading, which was brought into effect last year in a phased manner, has increased upfront requirement to 100% from September. Sebi hiked the upfront margin requirement to 50% from 25% from 1 March 2021 and further to 75% in June.
In equity derivatives segment, NSE ADTV in August was at ₹60 trillion compared to ₹57 trillion in previous month. BSE’s options’ ADTV remained flat m-o-m at ₹3 trillion in August.
In commodity segment, MCX reported ADTV of ₹25,000 crore in August declining 8% month-on-month and 42% year-on-year.
“Month-on-month (m-o-m) decline in ADTV was led by gold, crude and copper. Drop in gold and copper ADTV is largely attributed to fall in volumes traded on the platform while drop in crude ADTV resulted equally from drop in both prices and volumes. Commodities that reported m-o-m gains were silver, due to increase in volumes traded, and natural gas due to higher prices," said ICICI Securities.
Data till July shows CDSL and NSDL market shares at 65% and 35%, respectively. In terms of incremental accounts opened in FY22, CDSL has maintained its dominant share of 88% versus 86% in FY22. Monthly demat additions for CDSL and NSDL were 2.3 million and 0.37 million in July.