Lumic
Get app
NIFTY 50·22,888.95−1.11%SENSEX·73,852.90−1.17%BANK NIFTY·55,488.10−0.64%RELIANCE·1,202.00−0.76%HDFC BANK·712.00−2.31%ICICI BANK·1,381.00−1.15%BHARTI AIRTEL·1,875.20−1.56%INFOSYS·1,130.70−2.63%L&T·3,661.90+0.96%TCS·2,460.90−0.17%ITC·260.80−1.02%SBI·973.70+1.15%AXIS BANK·1,236.00−4.19%NIFTY 50·22,888.95−1.11%SENSEX·73,852.90−1.17%BANK NIFTY·55,488.10−0.64%RELIANCE·1,202.00−0.76%HDFC BANK·712.00−2.31%ICICI BANK·1,381.00−1.15%BHARTI AIRTEL·1,875.20−1.56%INFOSYS·1,130.70−2.63%L&T·3,661.90+0.96%TCS·2,460.90−0.17%ITC·260.80−1.02%SBI·973.70+1.15%AXIS BANK·1,236.00−4.19%

Nifty

Closing Auction Session Cuts Derivatives Volume, Raising Liquidity concern

about 2 months ago · Lumic

Graph showing declining derivatives trading volumes on NSE and BSE post Closing Auction Session implementation.
Lumic
about 2 months ago
Closing Auction Session Cuts Derivatives Volume, Raising Liquidity concern
KEY POINTS
August derivatives turnover hit multi-month lows on NSE and BSE after CAS changed trading
NSE's August derivatives turnover fell to ₹34.48 lakh crore, lowest since November 2023
Traders are closing positions earlier, reducing arbitrage and hedging activity near close
LUMIC INSIGHT
CAS volatility a big challenge for derivative traders
Economic Times·about 2 months ago

The recent changes to the Closing Auction Session (CAS) in India's stock markets have led to a noticeable dip in derivatives turnover on both the NSE and BSE. This story from the Economic Times highlights how the CAS volatility is creating a big challenge for derivative traders. August saw derivatives turnover hit multi-month lows, with NSE's F&O trading India volume falling to ₹34.48 lakh crore, the lowest since November 2023. Market participants are now closing positions earlier, which in turn is reducing arbitrage and hedging activity near the market close. This development raises concerns about stock market liquidity and overall derivatives market India activity. Understanding these shifts is crucial for anyone involved in Indian stock market trading, especially in the F&O segment.

More in Nifty

Lumic Insights cover explaining why a company's share price can fall despite good sales or profits, introducing the role of
1/5
Lumic
3 days ago

Nifty

Why Stocks Fall Despite Good Results: Expectations vs Reality

Lumic research·3 days ago
Nifty IT records an 11.5% weekly gain, its biggest in nearly 18 years, as stronger quarterly results revive investor interest
Lumic
3 days ago

Nifty

Nifty IT Jumps 11.5% for Its Biggest Weekly Gain in Nearly 18 Years

  • Nifty IT gained 11.5% in a week, marking its biggest weekly rise in nearly 18 years
  • Tech Mahindra, TCS, Infosys and HCLTech were among the major stocks leading the rally
  • Better-than-expected quarterly results helped renew investor interest in Indian IT companies
LUMIC INSIGHT
With L&T, Infosys and Coforge results ahead, investors to watch IT ral
CnbcTv18·3 days ago