October Sees Record Turnover In BSE, NSE Derivatives

Updated: Nov 6 2003, 05:30am hrs
The derivatives segment of the National Stock Exchange (NSE) and The Stock Exchange, Mumbai (BSE) clocked a new record turnover, breaching the Rs 2,21,517-crore mark in October 2003 from the previous level of Rs 1,86,002 crore in September 2003. And there was an increase by 270.45 per cent from its January 2003 level.

Also, in terms of volume, the figures have followed the same trend. The total volume on BSE and NSE has risen from 486.77 crore in September to 567.09 crore in October. The volume has increased 203.82 per cent to 567.09 crore in October from the level of 186.65 crore in January. Interestingly,in October, value of NSE and BSE derivatives market exceeded the value of NSE and BSE cash market. The value of NSE and BSE derivative market was Rs 2,21,517 crore during the month of October, while the value of NSE and BSE cash market was only Rs 1,68,226 crore.

As we know, the NSE has played a vital role in the derivatives segment. In terms of value, it has constituted 99.63 per cent of the market. Volumes on the NSEs derivatives segment have decreased from 186.04 crore in January to 163.80 crore in March and increased steadily to 565.82 crore in October. The above trend indicates that investors took more interest in the derivatives market than cash market in October.

Observe the behaviour of individual derivatives products on NSE and BSE. During October, investors favoured futures products. Among the products on futures, investors have bee showing more interest in NSE stock futures. The value of NSE stock futures has increased from Rs 1,13,873 crore in September to Rs 1,39,872 crore in October 2003.

The share of stock futures in NSE derivatives has increased from 61.50 per cent during September 2003 to 63.37 per cent during October 2003. And from the level of January, the share has decreased. In the case of BSE, the stock futures showed a downward trend during October from the level of September.

The value of stock futures decreased from Rs 441.49 crore during September 2003 to Rs 416.73 crore during October 2003. Volume of stock futures also followed the same trend.