2025-04-24 22:52:09
Latest Post
Prime Securities Ltd Q4 FY2025 net profit at Rs. 96 lakhs
Macrotech Developers Ltd consolidated Q4FY25 PAT at Rs. 921.7 crores
Accelya Solutions' Consolidated Income for Q3 at Rs. 1,367.55 Million
Insolation Energy Limited invests in rights issue of Insolation Green Energy Pvt Ltd
Minor fire incident in BHEL Bhopal
Research
Indian exchanges - Volatility aiding volume growth in Mar'22 - ICICI Securities
Posted On : 2022-03-14 10:21:02( TIMEZONE : IST )
Indian equity markets continued to witness heightened volatility in Feb'22. FPI selling intensified during the month, leading to a decline of 5-10% for broader indices. Drop in market levels impacted cash volumes (down 9% MoM), but higher volatility increased derivatives/commodity volumes by 11%/13% MoM. However, all segments continue exhibiting positive trends in Mar'22 thus far.
- Mar'22-TD has seen sharp sequential volume growth across segments: Data up to 11th Mar'22 indicates sharp growth in volumes across segments as cash volumes are up 18% MoM, NSE equity derivatives volumes up 2% MoM, and MCX adjusted ADTV (futures + options) up by a strong 57% to Rs477bn.
- Equity cash ADTV dropped in Feb'22, but improvement is seen in Mar'22-TD: In Feb'22, NSE's ADTV dipped 9% MoM to Rs584bn, but has recovered to Rs691bn. Mar'22-TD ADTV is currently higher than Apr'21-Feb'22 average ADTV of Rs671bn. BSE's Dec'21 cash ADTV declined 10% MoM to Rs48bn and has improved to Rs53bn in Mar'22-TD. NSE's cash segment market share was 92.4% in Feb'22 and improved to 92.9% in the current month till date.
- Equity derivatives' ADTV boosted by spike in volatility. NSE options ADTV grew 11% MoM in Feb'22 and 2% MoM in Mar'22-TD. India VIX was up 42% MoM in Feb'22 and has remained elevated in Mar'22-TD though it has dipped by 11% in the current month thus far. NSE's total equity derivatives' ADTV in Feb'22 came in at Rs100trn (notional turnover) split between 11%/4% growth in options/futures. BSE options declined 5% MoM to Rs2.1trn in Feb'22.
- Commodity derivatives: Volatility aided volume growth for MCX: MCX witnessed a large spike in its adjusted ADTV (futures + future equivalent option volumes) as volatility (especially in crude) increased in the wake of geopolitical concerns. MCX futures' daily traded value clocked Rs516bn on 24th Feb'22 (second-highest since 9th Nov'20). Feb/Mar'22 futures ADTV was Rs253bn/410bn, up 13%/62% MoM, while adjusted ADTV stood at Rs305bn/477bn in Feb/Mar'22, up 18%/57% MoM. We expect 15% QoQ EBITDA growth for MCX in Q4FY22 on current trends.
NCDEX volumes remain weak with 6% MoM decline in its ADTV in Feb'22. Compared to Rs307bn adjusted ADTV for MCX, NCDEX Feb'22 ADTV was Rs12bn. - Currency derivatives: Volumes improved sequentially: In Feb'22, NSE/BSE currency derivatives' ADTV grew 28%/12% MoM with 81% market share for NSE.
- MF trading: BSE maintains market share in terms of number of orders processed: Number of orders processed on BSE/NSE MF platforms grew 98%/54% YoY to 18.1mn/3.1mn respectively, in Feb'22. This implies 86% market share in the number of orders processed and 67% in terms of value in Feb'22 for BSE.
- Depositories and NSE active clients: CDSL demat accounts grew 3.9% to 60.7mn while NSDL demat accounts grew 2.3% to 26mn in Feb'22. NSE active clients increased 2% MoM to 340mn.
