NSE Reports Suggest Expiry Day Holidays Contributed to April Trading Volume Decline
Market Share Shift: BSE Overtakes NSE in Equity Derivatives Metrics
The National Stock Exchange (NSE) has attributed the shift in market share in the Futures and Options (F&O) segment to market holidays falling on Tuesday in April. According to the exchange, the holidays impacted trading volumes, particularly in the NSE, which has traditionally held a higher market share in the F&O segment.
NSE's weekly and monthly contracts typically expire on Tuesday, and in April, two holidays coincided with expiry days: Shri Mahavir Jayanti on 31 March and Dr. Baba Saheb Ambedkar Jayanti on 14 April. As a result, rival contracts expiring on Thursdays were unaffected, creating a temporary imbalance in reported activity. This anomaly, however, signals a broader trend of recovery and strengthening market position.
The exchange further noted that notional calculations artificially inflate competitor share due to higher index price levels, producing distortions of up to 19 percentage points. In contrast, premium turnover aligns with global best practices and is used by regulators such as SEBI and institutional investors.
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In April, BSE overtook NSE across key equity derivatives metrics. BSE's notional average daily turnover rose 20% month-on-month to Rs 269 lakh crore, while NSE's fell 26% to Rs 217 lakh crore.
| Exchange | Notional Average Daily Turnover (Rs lakh crore) | Monthly Change |
|---|---|---|
| BSE | 269 | 20% |
| NSE | 217 | -26% |
Total contracts traded followed the same pattern, with BSE up 26% to 351 crore, NSE down 22% to 289 crore. As a result, the BSE's share of notional turnover rose to 55 percent, while NSE's share was 45 percent.
However, the NSE argues that this was a temporary blip. Instead, the exchange points to a clear upward trajectory in the first quarter of 2026. Data from the NSE shows that its index options market share rose steadily from 66.7% in January to 72.1% in March, an increase of 540 basis points that underscores the strong underlying growth momentum.
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Investor Takeaway
Market holidays and expiry day holidays may impact trading volumes, but the broader trend signals recovery and strengthening market position.
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