BSE, Angel One slip as Sebi mulls F&O tenures; Nifty Capital Mkt down 1%

The Nifty Capital Markets index, top loser among NSE indices, was down 1.52 per cent, as compared to a 0.22 per cent rise in the Nifty 50

Shares of capital market-related companies, including broking, exchange and data-related platform and depository clearing houses, were under pressure with the Nifty Capital Market index falling over 1 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade. The move came after India's markets regulator, Securities and Exchange Board of India (Sebi), said that it is looking for ways to increase the tenure and maturity of equity derivatives contracts. 

 

“The aim is to deepen the cash equity market, which forms the true foundation of capital formation,” said Tuhin Pandey, Sebi Chairman in a speech at the Federation of Indian Chambers of Commerce & Industry (FICCI) conference. While daily trading volumes in the cash market have doubled over the past three years, much more needs to be done, he added.

 

 

Equity derivatives also play a crucial role in capital formation, but ensuring quality and balance is essential, Pandey said. "We will consult stakeholders on ways to improve and carefully calibrate the tenor and maturity profile of derivative products so that they support both hedging and long-term investing," he added.

 

At 12:16 PM, the Nifty Capital Markets index, the top loser among NSE indices, was down 1.52 per cent, as compared to a 0.22 per cent rise in the Nifty 50. 

 

Among the individual stocks, BSE has slipped 6 per cent to ₹2,381 on the NSE in intra-day trade. Shares of Angel One were down 5 per cent to ₹2,588, while 360 ONE WAM, Multi Commodity Exchange of India (MCX), Motilal Oswal Financial Services, Central Depository Services (India), and UTI AMC were down in the range of 1 per cent to 2 per cent. 

Equity derivatives (F&O) segment generates revenue worth around ₹1,415 crore in FY25 according to reports. Given BSE's total revenue is of around ₹3,236 crore in FY25, this means the F&O segment accounted for approximately 44 per cent of total revenue.

 

Further, between FY20 and FY24, transaction charges grew to ₹583 crore. Of this, about 25 per cent came from equity derivatives, while 36.6 per cent was from the cash segment.

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How will Sebi’s extension of F&O tenure impact capital market companies?

Market analyst Ambareesh Baliga believes the move by Sebi will take a toll on exchange and brokerage companies' volumes. 

 

“Capital market stocks, especially the exchanges’ as well as the brokerages’ stock volume, can reduce significantly if Sebi extends F&O tenure, depending on the top line revenue; their earnings can also get affected,” Baliga said. 

 

On a similar line, G Chokkalingam, Founder, Equinomics Research, said, “If the F&O tenure is extended, the turnover may come down, which would affect the profitability of the exchange business.”  Kunal Kamble, sr. technical research analyst, Bonanza believes in the recent period, there has already been a drop in volumes in the derivatives segment, and this development will further lead to loss of participation.  "Brokers will face issues, since a major portion of broking income comes from derivatives. They have already been impacted when weekly expiries were reduced from 6 to 2," Kamble said. 

Technical view on Nifty capital market and stocks

Nifty Capital Market can witness some correction towards its support of 4,270. If this support is not respected, further downside towards 4,000 can be expected. On the higher side, the index needs to take out its previous high placed at 4,770. 

In capital market, Angel One can further decline towards ₹2,500, followed by ₹2,270. The overall setup remains negative, with sellers showing aggression and keeping pressure on the stock. For buyers to regain interest, the stock needs to surpass ₹2,880 levels. It’s better to avoid at current junction and wait for proper level.

 

From September 2025, the expiry date for BSE’s options contract is slated to change to Thursday, as opposed to Tuesday presently. This change in the expiry day may lead to a possible dip in options volume, though the exact impact is uncertain, said ICICI Securities in its Q1 result update. The brokerage firm has a ‘hold’ rating on BSE with a target price of ₹2,450 per share.

 

“Our rating factors in that the new high base of volume is already set and incremental growth can be more system-driven, which could be more gradual. Additionally, there is the possibility of adverse volume impact from the change in expiry day to Thursday, effective September 2025. However, upside risk remains from continuous gain in market share in both cash and derivatives and better execution,” said analysts at ICICI Securities.