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Equity segment maintains growth momentum, commodities remain muted

Apr’21 witnessed strong all-round performance across trading segments on Indian exchange platforms. NSE / BSE cash ADTV (average daily turnover value) grew 5% / (-)13% MoM respectively. NSE / BSE equity derivatives grew 5% / 7% MoM driven by growth in option volumes. Mutual fund transactions too grew by a strong 75% YoY for BSE and 64% for NSE, while on MoM basis BSE witnessed marginal growth of 0.9% and NSE a decline of 10% (historically, orders processed on MF platforms have seen a dip in April over March).

In currency derivatives, NSE / BSE reported 27% / (-)2% MoM growth. MCX ADTV was flat MoM at Rs266bn as higher commodity prices got offset by drop in traded quantities. NCDEX too reported strong ADTV growth of 32% on MoM basis. Monthly demat addition for CDSL stood at 1.63mn and that for NSDL 0.18mn in Apr’21.

Equity cash: This segment witnessed strong momentum in cash volumes, and improvement in market share for NSE.

* In Apr’21, NSE’s ADTV came in at Rs700bn. This compares with Rs725bn in Jan’21, Rs814bn in Feb’21 and Rs666bn in Mar’21. Thus volume traction remains robust and the impact of higher margin norms has not been so strong. BSE’s Apr’21 cash ADTV was Rs44bn compared with Rs52bn/72bn/50bn in Jan/Feb/Mar’21.

* NSE’s market share stood at 94% in Apr’21 vs 91% in Feb/Mar’21. Thus NSE has wrested back some lost market share.

Equity derivatives: Sharp jump in option volumes on NSE and BSE

* NSE’s total equity derivatives’ ADTV in Apr’21 rose to Rs46.6trn vs Rs41trn in Q4FY21 (considering notional turnover in options). NSE futures / options ADTV stood at Rs1.2trn / 45trn in Apr’21. We reiterate that there has been no impact of increased margin norms on derivative volumes.

* BSE’s options turnover increased from Rs0.3trn in Jul’20 to Rs3.2trn in Apr’21. The rise in options’ ADTV was due to launch of Sensex 50 derivatives with differentiated Monday expiry. Futures volumes remain negligible.

Currency derivatives at record high in Apr’21; NSE continues to hold dominant market share

* In Apr’21, NSE’s currency derivatives’ ADTV grew 112% YoY to Rs877bn and that of BSE was up 65% YoY to Rs264bn. NSE’s market share in currency derivatives stood at 77% in Apr’21.

MF trading data: BSE dominates; overall strong performance on both platforms

* Number of orders traded on BSE’s mutual fund platform grew 75% YoY to 11mn in Apr’21. NSE posted 64% YoY growth under the same parameter to 2.21mn. In value terms, BSE’s market share in online mutual funds was at 69.4% in Apr’21 vs 74% in FY21.

Commodity derivatives: MCX Apr’21 ADTV remained flat MoM.

* MCX reported ADTV of Rs266bn in Apr’21 (ADTV is based on 20 working days, as 14th and 21st were half working days for the exchange).

* ADTV grew marginally by 0.3% MoM led by higher commodity prices, which got offset by lower volumes. Absolute MoM change in ADTV was Rs0.3bn driven by +Rs8.1bn due to change in prices and (-)Rs7.8bn due to change in quantities.

* In Apr’21, growth in ADTV of silver (8.3% MoM), crude (7.2% MoM) and natural gas (14.3% MoM) was offset by decline in gold (14% MoM) and copper (14% MoM).

* On YoY basis, ADTV was up 70% as Apr’20 (base month) saw limited hours of trading activity due to lockdown restrictions.

* NCDEX’s ADTV grew 32% YoY to Rs28bn in Apr’21. Depository: CDSL maintained dominant market share in incremental demat accounts

* Data till Apr’21 shows CDSL / NSDL market share at 62% / 38% respectively.

* In terms of incremental accounts opened in Apr’21, CDSL has maintained its dominant share of 90% vs 86% in FY21.

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