Cash turnover rises to 9-month high as equity market volumes climb

Equity cash segment turnover rose for the fourth straight month in June, lifting the benchmark Sensex and Nifty to their highest levels in nine months

Equity cash segment turnover rose for a fourth straight month in June, while the trading volumes for the derivatives segment slipped for a second month.

 

The rise in the cash market volumes were underpinned by a fourth straight monthly gain in the markets, which lifted the benchmark Sensex and Nifty to their highest levels in nine months.

 

On the other hand, the regulatory tightening continued to weigh on futures and options (F&O) trading.

 

 

The average daily turnover (ADTV) in F&O declined marginally to ₹345.85 trillion — a four month low. The combined cash market ADTV for NSE and BSE climbed to ₹1.21 trillion in June, highest since September 2024, when the markets had logged their lifetime highs.

 

The market regulator has brought in major changes in the F&O regulations since November 2024, including restricting weekly expiry to only one index per exchange and increasing the lot sizes, which impacted the overall turnover.

 

Experts said the upcoming shift in the expiry days for both the exchanges may lead to further softening in volumes, albeit only for the near term.

 

In another overhaul, the Securities and Exchange Board of India has announced a new set of measures for the derivatives segment, introducing a fresh formulation to calculate open interest and market-wide position limits.