Shares of BSE Ltd closed nearly 4 per cent lower on Wednesday after the National Stock Exchange announced changes to the F&O contracts expiry.
The latter on Tuesday decided to shift the expiry of all contracts to Monday from Thursday in its equity derivatives segment from April 4. “Nifty weekly contracts, Nifty monthly, quarterly and half-yearly contracts, Bank Nifty monthly and quarterly contracts and Fin Nifty, MidCap Nifty and Nifty Next 50 monthly contracts would be expired on Monday. All single stock futures will also expire on Monday, the circular stated.
The move is likely in response to the increased market share of the BSE’s derivatives segment on Friday & Monday, according to Nilesh Sharma, Executive Director & President, SAMCO Securities.
“This follows the BSE adjusting its index derivatives expiry to Tuesday from January 1, 2025,” Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers said.
Kothari emphasised that the exchange streamlined its offerings by discontinuing certain weekly contracts to enhance liquidity in monthly expiries, balancing trader flexibility with market stability.
The shift to Monday expiry on NSE could increase weekend gap risk, particularly for short-term strategies like one-day-to-expiry (1DTE) trades, as markets remain closed over the weekend, potentially amplifying volatility and uncertainty, according to Kothari. “This may deter speculative traders while pushing others to adapt their risk management tactics, such as squaring off positions earlier or rolling over contracts to mitigate losses,” he added.
For investors, this evolving landscape means rethinking strategies—those who adapt to new expiry cycles and leverage tools like arbitrage or hedging may thrive, while others risk being caught off-guard by increased complexity and competition between NSE and BSE.
Meanwhile, Sharma added, “The change may have a negative impact for the derivative traders of the NSE, as carry forwards trades would be exposed to higher risk due to the higher volatility on the weekend.”
The stock has been in negative territory for seven of eight latest trading sessions amid mounting market volatility and legal concerns.
Global brokerage Goldman Sachs recently slashed the target price on BSE to ₹4,880 from ₹5,650 earlier, maintaining neutral rating. The brokerage had also cut BSE’s earnings per share (EPS) estimates for FY25 to FY28 by up to 14 per cent, emphasising volume declines outweighing potential gains in options market share.
In addition, BSE has been under pressure due to legal scrutiny after an FIR was directed against former SEBI chairperson, two BSE officials and others. The Bombay High Court on Tuesday stayed for four weeks a special court’s order directing FIR against former SEBI chairperson Madhabi Puri Buch and five other officials for alleged stock market fraud and regulatory violations.
BSE stock depreciated 3.67 per cent to close at ₹4,290 on the NSE, after hitting an intraday low of ₹4,035.10. The market capitalisation rose to ₹58,076.46 crore. Meanwhile, the broader market witnessed a relief rally soaring about 1 per cent.
Also read: Stock Market Live Updates 5 March 2025: Markets rise in early trade as investors brace for Trump tariff impact; Sensex jumps 500 pts, Nifty above 22,200
