Cash, commodity trading volumes improve sequentially in May; equity derivatives decline

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The trading volumes at the Indian stock and commodity exchanges in the month of May 2021 improved sequentially for the cash and commodity segment while equity derivatives witnessed a decline.

Cash, commodity trading volumes improve sequentially in May; equity derivatives decline
The trading volumes at the Indian stock and commodity exchanges in the month of May 2021 improved sequentially for the cash and commodity segment while equity derivatives witnessed a decline.
The equity segment witnessed strong momentum in volumes, for both, National Stock Exchange (NSE) and BSE during the month as the ADTV (average daily turnover value) at both the bourses grew 12 percent and 29 percent, MoM.
In May 2021, NSE’s ADTV stood at Rs 78,400 crore compared to the average Rs 72,600 crore in January-April 2021. As such, the volume traction remains strong. BSE’s cash ADTV was Rs 5,600 crore, up 64 percent YoY and 29 percent MoM, according to the ICICI Securities report.
The NSE maintained its dominant market share which stood at 93 percent in May 2021.
However, equity derivatives witnessed a sequential decline for NSE while BSE reported MoM growth.
NSE's total equity derivatives’ ADTV in May stood at Rs 43.3 trillion as compared to Rs 46.6 trillion in April driven by a drop in notional turnover in options. NSE futures/options ADTV stood at Rs 1.2 trillion/Rs 42.15 trillion in May.
A minimal impact was seen of phase 3 of Sebi's upfront margin norms (75 percent margin requirement) which were applicable from June 1. The equity cash volumes averaged Rs 77,600 crore in the first four days of June compared to the average Rs 76,700 crore in March-May 2021.
Meanwhile, the equity derivative volumes averaged Rs 50.7 trillion in the first four days of June compared to the average of Rs 47.9 trillion in March-May 2021, according to the report.
The growth momentum in the currency derivatives cooled down during the month on a sequential basis. In May, NSE/BSE’s currency derivatives’ ADTV grew 44 percent/29 percent YoY to Rs 58,200 crore/ Rs 22,000 crore. However, on an MoM basis, NSE/ BSE witnessed a decline of 34 percent/17 percent respectively.
NSE’s market share in currency derivatives stood at 73 percent in May.
On the commodities trading front, the ADTV of MCX rose sequentially on robust silver and copper volumes. MCX reported ADTV of Rs 32,200 crore in May, a growth of 21 percent MoM led by higher volumes and higher prices.
Absolute MoM change in ADTV was Rs 5,700 crore driven by over Rs 4,100 crore due to change in quantity and around Rs 1,600 crore due to change in price, ICICI Securities said.
While there was strong growth in MoM in Silver (25.9 percent MoM) and Copper (62 percent MoM), Crude ADTV declined 19 percent on an MoM basis. On a YoY basis, May ADTV was up 35 percent YoY for the exchange.
MCX ADTV averaged Rs 29,500 crore in the first four days of June compared to the average of Rs 28,500 crore in March-May and Rs 32,200 crore in May.

Market Movers

CompanyPriceChange%Loss
Divis Labs4,313.05 -75.00
Coal India157.15 -2.20
Bajaj Finserv11,798.70 -127.45
Hindalco390.85 -3.95
Dr Reddys Labs5,410.85 -50.50
CompanyPriceChange%Loss
Bajaj Finserv11,799.05 -132.75
Dr Reddys Labs5,414.90 -44.65
Titan Company1,723.50 -11.80
Sun Pharma673.20 -4.05
Bajaj Finance6,160.70 -33.50
CompanyPriceChange%Loss
Divis Labs4,313.05 -75.00 -1.71
Coal India157.15 -2.20 -1.38
Bajaj Finserv11,798.70 -127.45 -1.07
Hindalco390.85 -3.95 -1.00
Dr Reddys Labs5,410.85 -50.50 -0.92
CompanyPriceChange%Loss
Bajaj Finserv11,799.05 -132.75 -1.11
Dr Reddys Labs5,414.90 -44.65 -0.82
Titan Company1,723.50 -11.80 -0.68
Sun Pharma673.20 -4.05 -0.60
Bajaj Finance6,160.70 -33.50 -0.54

Currency

CompanyPriceChng%Chng
Dollar-Rupee73.31250.04250.06
Euro-Rupee88.94300.27100.31
Pound-Rupee103.33400.08400.08
Rupee-100 Yen0.66580.00020.02