Indian Exchanges Report: Equities remain stable, Derivatives soared and Commodities dragged

Year 2020 and Year 2021 has seemed to prove to be a blockbuster for the Indian Exchanges so far. Let’s look at some data points that support the case.
The volumes significantly increased across all segments in September ’21. Equity Cash segment ADTV (average daily turnover value) grew up by 23% for NSE and 93% for BSE respectively on Y-o-Y basis while BSE was down by 1% and NSE down by 11% on Q-o-Q basis.

While Cash segment has some stability, the Equity Derivatives segment number roared loud. The ADTV of NSE’s total equity derivative stood at Rs. 69trn in Sept’21 vs Rs. 57trn in Aug’21, up by ~21%. NSE Options ADTV grew up by ~20% to Rs. 67trn and Futures grew up by ~13% to Rs. 1.2trn. While party was at NSE, it was a grimmer picture for BSE with Options ADTV declining sharply by 46% to Rs. 1.6trn.

Along with Equity Derivatives, the Currency Derivatives outperformed too and had highest volumes in past 5 months. NSE currency derivatives ADTV grew up by 31% to Rs. 709bn while BSE currency derivatives ADTV grew by 30% to Rs. 253bn on YoY basis. While on MoM basis the figures stood at 32% for NSE and 5.7% for BSE. NSE’s market share stood at ~74% while BSE’s stood at ~26% in September 2021.
On mutual fund platforms front, number of orders processed on the BSE mutual fund platform grew by 111% to 15.1mn while on the NSE mutual fund platform grew by 89% to 2.97mn.

The Commodity segment faced the heat with ADTV in Sept’21 was dramatically down by 25% YoY and up by merely 2% MoM at Rs. 256bn. Even the soaring prices of Natural Gas and Crude, the ADTV was range bound between Rs. 250-260bn since March’21. The MoM 2% increase was due to higher volumes in Gold trades and Natural Gas prices. However, Gold was also the reason behind the dramatic 25% YoY decline as Gold ADTV dropped by 50% YoY on basis of lower traded volumes. 

Overall, MCX ADTV was down by 32% on YoY basis and by 9% MoM basis. MCX commodity Options segments cheered along with MCX Options ADTV stood at Rs. 76bn in Sept’21 vs 60bn in Aug’21. The increased in ADTV was mainly led by Options volume in Crude and Gold. In MCX index futures universe, Bullion ADTV grew up by 9% and Metal Indices ADTV grew up 21% MoM basis in Sept’21
Upon monthly performance check, CDSL has been given a “REDUCE” Rating, BSE “HOLD” rating and MCX “BUY” Rating.