NSE, BSE equity derivatives turnover hits multi-month low in August amid CAS volatility
August saw a significant dip in equity derivatives turnover on the NSE and BSE, reaching multi-month lows. Analysts connect this downturn to the recent implementation of the Closing Auction Session, which has changed the dynamics of trading near market close. Traders are opting to exit their positions sooner to avoid potential pitfalls. The regulator reassures that this session mechanism is now a…
Mumbai: In August, the NSE and BSE witnessed a substantial drop in equity derivatives turnover, settling at multi-month lows, according to recent analysis. Rajesh Palviya, Axis Securities' head of research, pointed to the new Closing Auction Session (CAS) volatility as the primary reason behind the decline in derivatives trading activity, particularly during the final half-hour of the trading day.
NSE's total monthly equity derivative turnover reached ₹34.48 lakh crore, marking the lowest since November 2023, while BSE saw a turnover of ₹32.2 crore, the lowest since June 2025. The new Closing Auction Session, introduced in August this year, operates as a 20-minute session from 3:15 pm to 3:35 pm, collecting buy and sell orders before matching them to determine a single official closing price for the stock.
Palviya also noted that brokers are now squaring off positions earlier at 3:05-3:10, while traders are closing positions promptly to avoid heightened volatility during the final minutes of the CAS window. This early closure of the cash market limits arbitrageurs and jobbers from executing delta-hedging strategies, contributing to the overall decline in monthly turnover.
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