Regulatory measures stabilise index choices buying and selling as market reveals restoration indicators: ICRA – OXBIG NEWS NETWORK-OxBig News Network

New Delhi, [India], May 22 (ANI): After months of volatility triggered by regulatory modifications, buying and selling exercise in index derivatives and choices is displaying indicators of stabilisation, in accordance with a report by ranking company ICRA.

The report famous that market contributors have strategically recalibrated their buying and selling strategy following three consecutive months of decline in choices volumes.

ICRA mentioned “buying and selling exercise seems to be stabilising in index derivatives and choices volumes, reflecting strategic recalibrations by market contributors.”

The regulatory measures, launched in a phased method beginning November 2024, had led to a pointy contraction in buying and selling volumes.

Between December 2024 and March 2025, the typical each day premium turnover declined by 18 per cent in comparison with the April-November 2024 interval. Additionally, the variety of choices contracts traded fell sharply by 60 per cent.

Order volumes, that are essential for futures and choices (F&O) brokerage, additionally took a success, declining by 25-35 per cent. However, regardless of this dip ICRA famous that buying and selling exercise nonetheless stays above historic averages, indicating some resilience out there.

The report highlighted that margin buying and selling facility (MTF) exposures, which peaked in December 2024, have now pulled again nearer to Rs. 71,000 crore.

However, the report believed that given the sturdy correlation of MTF with broader market developments, a rebound in investor confidence might as soon as once more push the publicity again in direction of the Rs. 1 lakh crore mark.

In phrases of monetary efficiency, securities broking corporations have felt the impression of decreased buying and selling exercise.

ICRA’s pattern of 9 broking corporations reported a 19 per cent year-on-year decline in web income for the fourth quarter of FY2025. Profitability additionally dropped to 26 per cent, marking the bottom stage prior to now 12 quarters.

However, the outlook is just not solely bleak. The report identified that after three months of falling choices volumes, buying and selling exercise seems to be stabilising. The upcoming launch of the MSEI-SX40 weekly index choices might additionally assist help buying and selling volumes within the close to future.

ICRA cautioned that regardless of early indicators of restoration, the general buying and selling setting stays extremely delicate to any additional regulatory developments. (ANI)

(The story has come from a syndicated feed and has not been edited by OXBIG NEWS NETWORK Staff.)