Why Have BSE Shares Climbed 4% On October 11? Check Reasons Here | News On Markets

3 min read Last Updated : Oct 11 2024 | 12:27 PM IST

BSE share price: Shares of BSE, Asia’s oldest stock exchange, were buzzing in trade on Friday, October 11, 2024, as the scrip climbed up to 3.95 per cent to hit an intraday high of Rs 4,383 per share.

The rise in BSE’s share price followed the announcement from the National Stock Exchange (NSE) that it would discontinue weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select and Nifty Financial Services, effective from November 13, 18, and 19, respectively.

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The NSE will retain only the Nifty 50 for weekly derivatives trading.

This shift is seen as a positive for BSE, as trading volumes are likely to shift to its platform, leading to an increase in transactions and revenue for it.

The BSE too, on October 4, had announced the discontinuation of weekly contracts for Bankex and Sensex 50, aligning with the recent mandate from the Securities and Exchange Board of India (Sebi). The weekly index derivatives contracts for Sensex 50 will be halted at the end of the day on November 14, while Bankex contracts will be discontinued on November 18.

Meanwhile, the NSE, in a circular released on October 10, said, “This is in line with Sebi’s circular aimed at strengthening the equity index derivatives framework to enhance investor protection and market stability.”

“According to the Sebi directive, each exchange may offer derivatives contracts for only one benchmark index with a weekly expiry, effective November 20, 2024. From that date, weekly derivatives contracts will only be available on the Nifty 50 Index (NIFTY). As a result, the above-mentioned three indices will have their weekly index option contracts discontinued,” it added.

According to the BSE’s circular, no new weekly contracts will be created once the existing unexpired contracts reach their expiry dates. However, these unexpired contracts will continue to be valid until their respective expiration.

The BSE said that it will maintain its existing weekly Sensex contracts as the sole offering, ensuring that investors still have access to this widely followed index.

The decision came in response to a Sebi analysis revealing that retail traders have often faced major losses in equity derivatives trading. The report found that about 93 per cent of retail traders incurred an average loss of Rs 2 lakh each over the past three financial years. Additionally, the proportion of loss-making individual investors in futures and options (F&O) rose to 91.1 per cent in FY24, up from 89 per cent in FY22.

That apart, the overall average daily turnover (ADTO) increased 7.1 per cent month-on-month to Rs 538.6 lakh crore, according to a recent report from Motilal Oswal. Within this, the ADTO for futures and options (F&O) rose 7.2 per cent, while cash ADTO saw a decline of 3.8 per cent. Retail cash ADTO fell 5.8 per cent month-on-month to Rs 52,000 crore.

Meanwhile, in September 2024, demat account additions surged 4.4 million, with an average of 4 million monthly additions year-to-date in FY25.

Additionally, the number of active users on the NSE grew to approximately 47.9 million in September, up from 46.8 million in August, the report noted.

The total market capitalistaion of BSE stood at Rs 58,801 crore, according to data on the NSE. The 52-week range of BSE stock is Rs 1,437.05-4,395.

At 11:42 AM, BSE shares were trading 3.19 per cent higher at Rs 4,350.50 per share. In comparison, Nifty50 was trading 0.23 per cent lower at 24,940.70 levels.

First Published: Oct 11 2024 | 12:22 PM IST

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