Expiry-day action escalates as daily activity fizzles out

VISIBLE SHIFT IN TRADE PATTERNS

- AKSHATA GORDE

TWO WEEKS INTO the first phase of the Securities and Exchange Board of India's (Sebi) measures to cool the futures and options (F&O) market, the action seems to have shifted to expiry days. While daily average volumes have seen a sharp decline, trading action has remained high on the two expiry days of the week. Experts expect this trend to likely intensify going ahead, with both volatility and volumes being expected to further rise on these two days - Thursday and Friday.

Last Thursday, the National Stock Exchange (NSE) recorded its first full weekly Nifty 50 expiry since the new rules took effect, with daily average turnover rising four times to ₹517 lakh crore, compared with ₹136 lakh crore on other days. On the BSE, Sensex's weekly expiry on Friday saw a 19-fold spike to ₹111 lakh crore in value, leaving the rest of the week noticeably quiet.