BSE shares jump 3% on plans to launch new monthly index options, revamp Bankex

BSE shares jumped over 3% to the day's high of Rs 2,769.90 after ET Markets reported that the stock exchange intends to launch more monthly index option products as well as revamp its Bankex index.

BSE shares are already up around 53% this year, and the stock is among the best-performing capital market infrastructure-related stocks with a 4,000% rally in the last 5 years.

Earlier in the day, ET reported that BSE is planning to launch more monthly index option products to increase its market share in the lucrative derivatives segment and also give its Bankex index a complete makeover.


"We are making it a stronger index," BSE MD and CEO Sundararaman Ramamurthy told ET Markets in an exclusive interaction. "We want to make monthly derivatives for Bankex a big product by telling people to try monthly products."

As part of the plan to revamp Bankex, BSE has added Canara Bank, AU Small Finance Bank, PNB and Union Bank to the banking index to take the total constituents to 14 with effect from December 26.

Also Read | ETMarkets Exclusive | BSE eyes new monthly index options, revamps Bankex to take on Nifty Bank

BSE's notional turnover market share in the F&O segment stood at 43.5% in November, and premium market share was 25.9%, according to domestic brokerage firm Motilal Oswal. And now the bourse, which competes with NSE in the equity derivatives market, is eyeing deeper trader engagement beyond the frenzy of weekly expiries to monthlies.

"If you take the weekly premium and multiply it by four, it would always be more than the monthly premium," Ramamurthy explained. "So monthly options are always cheaper."

B&K Securities expects premium quality to gradually improve in BSE's index options segment over FY26-28, driven largely by volume development on non-expiry days—exactly where management is focusing its efforts.

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