Despite increasing the stock market fluctuations in January, derivative business did not rise much. The average daily business (ADTV) for the futures and options (F&O) segment reached Rs 298 lakh crore, which is an increase of 6.44 per cent on a monthly basis. However, this is still 44 percent less than the high level of Rs 537 lakh crore in September. In September, the major index reached new heights. The F&O business fell 37 per cent to Rs 280 lakh crore in December.
Analysts believe that a recent decline in derivative business during the last two months indicates that strict trading rules of the Securities and Exchange Board of India (SEBI) may have an impact. The cash market’s ADTV remained unchanged jointly for both NSE and BSE at Rs 1.1 lakh crore.
The December was the first calendar month after the new rule was implemented which included a weekly disposal and elevated Extreme Los Margin (ELM) on each exchange. Additional measures such as eliminating calendar spread benefits on the day of advance collection and disposal of premium will be effective next week. Intra-Day monitoring of the position will begin from 1 April. Experts believe that these changes may lead to further weakness in the volume.
The ups and downs in January may have prevented a further decline in business. Initially, Sensex and Nifty declined by more than 3 percent. But made most of his losses. The end of the month ended with less than 1 percent loss. In contrast, the Nifty Smallcap 100 index ended in January with a decline of 9.9 percent, which was the biggest shock for it since May 2022. The Nifty Midcap 100 declined by 6.1 percent, which is its biggest monthly decline since October 2024.