Cash, derivatives volumes sink as oil, yields roil sentiment

Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Cash and derivatives volumes fell as rising oil prices and high bond yields hurt market sentiment.
- ✓The Nifty 500 dropped 4% during the September quarter.
- ✓DK Aggarwal said, “Many persons absent from derivatives trading will return to the fold and volumes will rise,” if Sebi delays new settlement rules soon.
Story at a Glance
- Category
- MARKET
- Reported By
- Livemint
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
The slowdown reflects a confluence of pressures. A surge in oil prices, driven by the US-Iran war and disruptions to global supplies, has pushed up bond yields and heightened volatility, while US Treasury yields—at their highest level in more than two decades—have driven foreign investors out of Indian assets. A revival in volumes may hinge on two swing factors: a de-escalation of the war in West Asia, and whether the market regulator delays rules pertaining to weekly options settlement on expiry days.
Stocks underperform
The Nifty 500, which represents the top 500 listed large-, mid- and small-cap companies on the NSE, declined 4% to 22,072 during the September quarter—a sharp reversal from the nearly 10% gain it posted in the first quarter of the current fiscal year (FY27).
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