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BANKEX total contracts hit new record high; crosses 3 crore mark

05 December 20234 mins read by Angel One
BANKEX contracts hit an all-time high with 3 crore trades and Rs 29.7 lakh crore notional turnover, reshaping the derivatives market, and enhancing liquidity.
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BANKEX contracts, introduced by the Bombay Stock Exchange (BSE) in May 2023, are futures and options contracts based on the S&P BSE Bankex index. The introduction of BANKEX contracts was a significant development in the Indian derivatives market, as it provided traders with a new tool to hedge their exposure to the banking sector. The contracts have been well-received by market participants, and trading volumes have been increasing steadily since their launch.

On the expiry day, December 4, 2023, BANKEX achieved a remarkable milestone by reaching an all-time high in contract trades. The market buzzed with activity as over 3 crore contracts were executed, marking an extraordinary level of engagement. What’s even more impressive is the staggering notional turnover, surging past Rs 29.7 lakh crore on the expiry day of the BANKEX index.

The 12 stocks that make up the S&P BSE BANKEX index are all highly liquid, and this means that there is a large amount of trading interest in BANKEX contracts. This liquidity makes it easy for traders to enter and exit positions, and it also helps to reduce transaction costs.

On December 4th, the financial market recorded a total of 3.90 crore contracts, with a corresponding total turnover of Rs 30.40 crore. Among these contracts, the futures turnover amounted to Rs 56.22 crore, while options trading contributed significantly with a notional turnover of Rs 30.39 crore and a premium turnover of Rs 2.11 crore.

In November 2023, the financial market witnessed a substantial volume of trading activity, with a total of Rs 1,124.39 million contracts traded, resulting in a significant total turnover of Rs 73,904.62 crores. The futures market contributed Rs 1,044.71 crore to this turnover, while the options segment played a predominant role with a notional turnover of Rs 73,903.58 crores and a premium turnover of Rs 37,910.12 crores.

Market Summary (as of December 5, 2023, 02:24 pm):

Type of Instrument Contracts Traded No. of Trades Turnover (Rs Cr) Notional Turnover (Rs Cr) Mkt OI (No. Of Contracts)
Index Future 134 93 9.45 127
Index Option (Call) 4,37,405 1,87,178 31,078.12 43,476
Index Option (Put) 4,13,963 1,72,368 28,567.33 65,941
Equity Future 36,97,613
Equity Option (Call) 10,82,089
Equity Option (Put) 8,52,474
Total 8,51,502 3,59,639 9.45 59,645.45 57,41,720
Type of Instrument Contracts Traded No. of Trades Turnover (Rs Cr) Notional Turnover (Rs Cr) Mkt OI (No. Of Contracts)
Sensex Futures 118 84 8.17 122
Sensex Options 7,80,633 3,24,605 53,973.93 1,01,552
Bankex Futures 16 9 1.28 5
Bankex Options 70,735 34,941 5,671.52 7,865
Foreign Indices Futures
Total 8,51,502 3,59,639 9.45 59,645.45 1,09,544

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions. 

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