The second week of June 2025 has brought negative momentum for the Bombay Stock Exchange, as key data points reflect a concerning decline in its derivatives trading performance. According to IIFL, overall exchange turnover across India dropped to its lowest levels in four months, with premium equity options witnessing a steep fall. The average daily turnover (ADTO) for all-India equity option premiums was at a four-month low, a level last observed during the fourth week of February.
BSE, in particular, recorded a sharp drop in its premium ADTO. For the second week of June, the BSE premium ADTO averaged at Rs 105 billion, which is down by 39% compared to the previous week. When compared to the April-May 2025 average, this figure is also lower by 33%, indicating a significant slump in trading interest and volume.
Another key metric, the premium ratio, also showed signs of weakening. The ratio dropped by 5 basis points or 33% on a weekly basis, settling at just 9 basis points. This suggests reduced efficiency or participation in premium pricing on the BSE platform.
The most striking development, however, was the fall in BSE's market share in the premium options segment. The exchange’s market share declined to 19.2% during the week, which is a 530 basis point fall from the previous week. When compared with the April-May 2025 average, the decline is around 180 basis points. This sharp erosion signals rising competition and possibly a shift in trader activity toward other exchanges such as the NSE.
Despite the short-term weakness in trading volumes and market share, BSE stock has been a multibagger for many investors. In the last one year alone, BSE shares have delivered nearly 200% returns. Over the past five years, the stock has surged more than 5,500%, creating significant wealth for long-term shareholders. As of June 16th, BSE shares were trading 0.70% lower at ₹2,694.
This downturn could be influenced by a mix of weaker market sentiment, growing preference for competing platforms, or other structural issues. Going forward, how BSE addresses these challenges will be key to its recovery in the derivatives market.
Disclaimer:
The information in this article is based on market data sourced from IIFL and is intended for informational purposes only. It does not constitute investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions .
