NSE announced on Monday evening the Nifty weekly contracts, which currently expire on Thursday, will now expire on Monday every week.
The Monthly, Quarterly and Half Yearly contracts, the Nifty Bank monthly and quarterly contracts, and the Financial Services, Nifty Midcap and Nifty Next 50 Monthly Contracts, which expire on the last Thursday of every month, will now expire on the last Monday helps.
The circular will come into effect on April 4. BSE currently has its expiry on Tuesday.
NSE has made these changes to possibly regain some lost market share against BSE. It is possible that BSE has a higher market share on Friday and Monday and hence NSE intends to recapture the same.
There is also a probability that there will be greater action on Friday, since participants may not want to come and carry positions in to the weekend and square them off.
In an interaction with CNBC-TV18, NSE’s Chief Business Development Officer Sriram Krishnan said that it makes sense to keep an optimal day to expire the Nifty Contract.
Krishnan added that there are plenty of geopolitical developments taking place over the weekend and hence Monday will be a great day to have the expiry. He added that NSE has received a lot of feedback post this news but the change has been announced keeping the efficiency and seamlessness in mind.
NSE wants to have one expiry day for all exchanges, Krishnan said, adding that with plans that other exchanges have, there might end up being an expiry on each day of the week. He further mentioned that the proliferation of weekly expiries via multiple exchanges does not solve the problem of heightened volatility on expiry day.
BSE shares had declined 5% on Tuesday after brokerage firm Goldman Sachs had cut its price target on the stock to ₹4,880 from ₹5,650 earlier, while maintaining its “neutral” rating.
Goldman Sachs also cut its financial year 2025, 2026, 2027 and 2028 Earnings Per Share (EPS) estimates by 1%, 14%, 12% and 11% respectively as the industry volume cuts may outweigh the higher options market share change.
Shares of BSE are currently trading 8% lower at ₹4,090. The stock is down 33% from its recent peak of ₹6,133.
First Published: Mar 5, 2025 9:40 AM IST
