BSE sees revival in derivative trade; turnover soars 35%

Leading stock exchange BSE has seen a strong revival in its derivative trading segment,

RELATED ARTICLES

with total turnover surging nearly 35 per cent to about Rs four lakh crore in the month of October.

The uptrend follows a sharp plunge of nearly 65 per cent in the value of equity derivative trading on the BSE to Rs 3.04 lakh crore during the preceding month, September 2012, as per market regulator Sebi's latest monthly bulletin.

However, BSE's equity derivatives turnover rose sharply by 34.6 per cent to Rs 4.10 lakh crore in October.

In terms of volumes too, the bourse witnessed an increase of 29.7 per cent with 1.44 crore contracts traded on its platform in October, as compared to 1.11 crore in September.

On the other hand, the National Stock Exchange (NSE) recorded an increase of 4.7 per cent in equity derivative turnover from Rs 25.91 lakh crore in September to Rs 27.14 lakh crore in October.

Collectively, the value of equity derivatives on BSE and NSE touched Rs 31.25 lakh crore in the month.

The equity derivatives turnover at NSE represented 86.9 per cent, while BSE comprised 13.1 per cent of total value in October, Sebi said.

On the BSE, the monthly turnover of put options on index surged by 88.3 per cent to Rs 2.09 lakh crore in October 2012.

Besides, call options on index recorded an increase of about 4 per cent while call options on stock climbed by 25 per cent on the bourse.

However, the segment noticed a decline in stock futures and index futures which declined 13.4 per cent and 19.5 per cent respectively.

Index and stock futures are generally contracts based on a particular stock or index.

Generally, put and call option contracts provide the holders the right to sell or buy securities, respectively, at a specific price and a specified time. However, the holder is not obliged to execute the contract.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks might be bracing for intense rate war for retail loans

    While select small banks have been slashing their deposit rates by five to 10 basis points over the past few weeks for short term adjustments to avoid

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture