Options volume hits record Rs 160.7 crore on NSE

Nitin Mathur

New Delhi, July 15:
The derivatives market seems to be gaining ground, though aided by speculative investment.

As many as 21 stocks, out of a total of 31 on which options trading is allowed, were traded on the National Stock Exchange (NSE) for the first time on Friday.

Indicating that activity in this segment is picking up, the turnover hit a record high of Rs 160.65 crore on Friday ever since options on the index and individual stocks were introduced on July 2.

Volumes have been on the rise during the past week and on Thursday, too, the turnover touched a high of Rs 128.15 crore.
This is in sharp contrast to the total turnover of Rs 78 crore as on July 3.

According to broking sources, the introduction of index and scrip-based options has helped the ailing futures markets.

Besides, a part of the money which was engaged in badla and other deferral products has found its way into this new-born segment.

The increase in volumes has been across all products, including Nifty
futures, Nifty options and options in individual scrips.

However, Nifty futures recorded the highest turnover among all the derivative products of Rs 103.66 crore from 4690 contracts, and Rs 86.71 crore from 3966 contracts on Thursday.

This was against a turnover of Rs 55.42 crore from 2562 contracts on July 3. Volumes are increasing in the July Nifty futures contract as it is approaching its expiry date, ie July 26.

Volumes in individual stock options also recorded a high of Rs 26.5 crore from 1203 contracts on Friday and Rs 23.4 crore from 1050 contracts on Thursday as against Rs 9.63 crore from 419 contracts on July 3.

An interesting feature of the trade on Friday and Thursday was that the call option was preferred to the put option in individual scrips.
As many as 9 out of the top 10 options contracts on Friday and all the top 10 contracts in individual scrips on Thursday were call options.

This denotes that the market expects these stocks to go up in the near future.

Satyam Computer Services, Reliance Industries, Reliance Petroleum, Tata Steel, ACC, L&T and Infosys Technologies were the top scrips on which options contracts were traded on Thursday and Friday.