Sensex options hit record as October volatility fuels trading
Traders piled into index options in October as sharp swings in Indian equities drove Sensex options' average daily premium turnover on the BSE to a record ₹35,481 crore, up 53% from ₹23,245 crore in September, exchange data showed. The NSE's average daily turnover for index options rose to ₹63,227 crore, its highest since March, when it stood at ₹85,508 crore.
The trigger was a volatile month. Escalating tensions in West Asia pushed oil prices into triple digits, and the Sensex fell 1.6% from 30 September to a 52-week low of 71,292.88 on 1 October, BSE data showed. It then swung nearly 5% to a monthly high of 74,849.75 on 19 October. The Nifty moved 4.5% between its low of 22,179.9 on 8 October and its high of 23,175.25 on 19 October.
"The relatively higher volatility pushed up Sensex volumes to a record high and Nifty to multi-month highs, with the boost also coming on weekly settlement days, when index option volumes tend to be higher," said Shai Coelho, founder of stock analysis firm Vtrender. Sensex options expire every Thursday and Nifty options every Tuesday, moving a day earlier when the settlement day is a holiday.
The NSE held a 64% share of index options in October, with the BSE accounting for the rest. Options are a core revenue line for both exchanges: the NSE, which listed in September, disclosed that its options business generated 60.22% of its ₹166 billion operating revenue in FY26. Sudhir Joshi, a consultant at Khambatta Securities, said traders "thrive" on volatility, pointing to the record-high ADT in Sensex options last month. He expects greater clarity on market direction to emerge after the 3 November US midterm polls, and said that if Trump escalates in West Asia, markets could see a one-way movement down, instead of a roller coaster ride like in October.
At Friday's close the Nifty stood at 23,053.10, 12.6% below its 52-week high of 26,373.2, while the Sensex at 74,459.53 was 13.6% below its high of 86,159.02. The BSE share closed 0.24% higher, while the NSE settled two-fifths of a per cent lower at ₹1,782.1.
