Sensex options volumes hit record high in October amid volatility
Heightened market volatility and sizeable swings drove Sensex options turnover to a record ₹ 35,481 crore, according to Mint.
Sensex options volumes on the BSE reached a record high in October as heightened market volatility drove trading interest, according to exchange data reported by Mint.
The average daily premium turnover (ADPT) for Sensex options stood at a record ₹ 35,481 crore in October, representing a 53 per cent increase from the ₹ 23,245 crore recorded in the previous month.
NSE index options volumes also rose to a seven-month high during the period. The NSE recorded an ADT of ₹ 63,227 crore last month, while the exchange held a 64 per cent market share in index options during October.
The Sensex plunged 1.6 per cent from 30 September to hit a 52-week low of 71,292.88 on 1 October. The index then moved to a monthly high of 74,849.75 on 19 October.
Shai Coelho, founder of stock analysis firm Vtrender, said higher volatility pushed Sensex volumes to a record high and Nifty to multi-month highs. He noted that volumes also increase on weekly settlement days.
Sudhir Joshi, a consultant at Khambatta Securities, said traders thrive on volatility. He noted the record-high ADT in Sensex options last month and suggested market direction may gain clarity after the 3 November US midterm polls.
