In May, trading activity in India's futures and options (F&O) market experienced a decline. This moderation was largely attributed to increased volatility triggered by geopolitical tensions in West Asia.
The National Stock Exchange (NSE) saw a boost in its market share, while the Bombay Stock Exchange (BSE) experienced a decrease.
In May, NSE's market share in options notional turnover rose to 52.6% from 44.5% in April. In contrast, BSE's share fell to 47.4% from 55.5%.
The options premium turnover saw NSE's share increasing to 69% in comparison to 66% in the previous month, while BSE's share dropped to 31% from 34%.
In the futures market, NSE maintained a dominating presence with 99.8% of the turnover, leaving BSE with only 0.2%.
The overall trading activity in the F&O market saw a decline. The average daily premium turnover (ADPTO) stood at ₹96,916 crore in May, down slightly from ₹97,637 crore in April, and 24% lower than the March peak of ₹1,27,000 crore.
Similarly, the average daily futures turnover (ADFTO) decreased to ₹1,58,000 crore in May from ₹1,85,000 crore in March, reflecting a drop of approximately 15%.
The cash market activity remained largely unchanged during this period. Fund houses such as Nippon India AMC, HDFC AMC, and Aditya Birla Sun Life AMC witnessed an acceleration in net flow additions. Notably, Nippon India AMC had 4 schemes among the top 15 equity funds attracting inflows.
The number of higher trading clients showed a 30% rise in premium turnover and an 18% increase in participation when compared to the averages of the financial year 2025-26.
Despite a 5% month-on-month decline in options contracts traded in May, this figure was still 42% higher than the same period in the previous year.
May saw a moderation in F&O trading activity due to volatility from the West Asia crisis. Despite the overall decline, NSE managed to increase its market share across several segments, highlighting its robust standing in the market.
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Published on: Jun 2, 2026, 2:40 PM IST
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