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Derivatives outperform while cash witnesses sequential decline in second consecutive month, commodities remain stable

Exchange volumes in Jul’21 declined sequentially for the cash segment while equity derivatives and commodities increased on MoM basis. Cash ADTV (average daily turnover value) for NSE declined 11% MoM while that for BSE grew 19% MoM. NSE equity derivatives’ ADTV was up 17% MoM driven by options’ notional turnover while BSE ADTV growth remained flat on MoM basis in Jul’21.

Mutual fund transactions grew 3.1% MoM for BSE and NSE witnessed a decline of 1%. In currency derivatives, NSE / BSE reported growth of 5.4% / 4.3% MoM respectively in Jul’21. MCX ADTV stood at Rs271bn in Jul’21 vs Rs264bn in Jun’21. NCDEX reported ADTV of Rs21bn, up 8% MoM, in Jul’21. CDSL added 2.3mn demat accounts in Jul’21.

Equity cash: Sequential decline for NSE and BSE

* In Jul’21, NSE’s ADTV was Rs627bn vs Rs707bn in Jun’21 and average of Rs733bn in Jan-Jun’21. BSE’s Jul’21 cash ADTV was down 19% MoM at Rs55bn. NSE’s cash segment market share stood at 92% in Jul’21.

Equity derivatives: Sequential improvement for NSE; BSE ADTV remains flat

* NSE’s total equity derivatives’ ADTV in Jul’21 stood at Rs54trn, compared to Rs46trn in May’21 (considering notional turnover in options). NSE options’ ADTV grew 17% sequentially to Rs52.9trn while futures witnessed a decline of 7% sequentially.

* BSE’s options’ ADTV remained flat on MoM basis at Rs3trn in Jul’21.

Currency derivatives: NSE and BSE see sequential improvement

* In Jul’21, NSE/BSE’s currency derivatives’ ADTV grew 61% / 26% YoY to Rs660bn / 239bn respectively. On MoM basis, NSE / BSE ADTVs grew 5.4% / 4.3% respectively. NSE’s market share in currency derivatives stood at 73.5% in Jul’21.

MF trading data: Value-based split of MF transactions on exchanges stood at 77% for BSE in Jul’21 vs 74% in FY21

* Number of orders processed on BSE’s mutual fund platform grew 93% YoY to 13.26mn in Jul’21. NSE posted 76% YoY growth under the same parameter to 2.7mn.

Commodity derivatives: MCX’s Jul’21 ADTV saw sequential improvement

* MCX reported ADTV of Rs271bn in Jul’21, up 3% MoM and down 27% YoY.

* ADTV grew 3% MoM led by sharp increase in natural gas ADTV (up 42% MoM) and offset by silver ADTV (down 26% MoM). Absolute MoM change in ADTV (for key commodities) was (+)Rs8.5bn driven by higher prices (Rs10.4bn) and offset by lower quantity traded ( (- )Rs1.9bn). Drop in volumes traded was led by Silver while higher prices were driven by Natural Gas. Crude ADTV grew 26% MoM.

* On YoY basis, MCX Jul’21 ADTV was down 27%.

Depository: CDSL added 2.3mn accounts in Jul’21

* Data till Jun’21 shows CDSL / NSDL market shares at 63.8% / 36.2% respectively.

* In terms of incremental accounts opened in FY22-TD, CDSL has maintained its dominant share of 88% vs 86% in FY21.

* Monthly demat addition for CDSL / NSDL stood at 2.2mn / 0.35mn in June’21 (CDSL added 2.3mn in Jul’21, NSDL data is awaited) vs average of 1.76mn / 0.25mn added in Jan-Jun’21.

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