From mint · Ram Sahgal · · 1m 30s
Cash Derivatives Volumes Drop as Oil Yields Impact Markets
Oil prices and bond yields drive Indian stock market volatility.
In brief
Oil prices and bond yields drive Indian stock market volatility. Indian stock market volumes fell 11.7% in Q2 due to rising oil prices and foreign outflows. Originally reported by mint.
Market Activity Declines
Trading activity in Indian stock markets fell sharply in the September quarter with volumes in both cash and derivatives segments declining.
Cash Volumes Drop 11.7%
The combined average daily equity cash volume of NSE and BSE fell 11.7% sequentially to ₹ 1.29 trillion in July-September.
Derivatives Volumes Drop 27%
The combined average daily index-options premium volume fell by 27% to ₹ 63,326 crore over the same period.
Oil Prices Surge
Brent crude rose 34% to $98 a barrel during the September quarter after sliding 38% to $73 a barrel in the June quarter.
Foreign Investors Sell
Foreign portfolio investors sold ₹ 1.38 trillion of Indian equities in the fiscal year through 1 October after a record ₹ 1.8 trillion of selling in fiscal year 2026.
Bond Yields Rise
The yield on the benchmark 10-year Indian government bond rose 43 basis points to 7.18% during the September quarter.
Regulatory Pressures
RBI's funding curbs on proprietary traders and Sebi's new closing auction session have dented domestic participation in both cash and derivatives markets.
Market Analysts Divide
Analysts remain divided on volume recovery, with some expecting options volumes to pick up if Sebi defers CAS for derivatives settlements on weekly expiry days.
What it means
Indian stock market volumes fell 11.7% in Q2 due to rising oil prices and foreign outflows.
