CAS chaos eases? Jefferies names top stock picks as options volumes recover, IPOs and commodities gain traction

The impact of the recently introduced closing auction session (CAS) may finally be easing on Dalal Street, with issues around the new mechanism appearing to settle, Jefferies said in its latest report. The brokerage noted that options volumes improved in September after a sharp drop in August.

The international brokerage said industry-wide September index options premium ADTO stood at Rs 68,100 crore, broadly similar to July levels before CAS was introduced on August 3. The new mechanism changed how closing prices are calculated for stocks in the futures and options (F&O) segment.

Jefferies said the recovery to pre-CAS levels was largely driven by easing CAS-related issues and a spike in the VIX.


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Jefferies on BSE and MCX

BSE’s ADTO in September increased 24% from the previous month to Rs 23,200 crore. BSE’s options market share fell slightly to 34.1% from 34.7% last month, as NSE had an additional expiry, Jefferies noted. It also highlighted that BSE’s cash-market share rose to 8.8% in September, marking the third consecutive monthly increase, led by the mega NSE IPO.

MCX, meanwhile, saw options ADTO rise 21% month-on-month, while futures ADTO fell 7% MoM. Jefferies noted that the increase in options ADTO was led by a 44% MoM rise in energy options ADTO. The commodity exchange is among the international brokerage’s top capital-market picks.

Jefferies on Groww share price

Groww could benefit from a recovery in orders, a pick-up in its MTF book and a rise in commodity trading in September, Jefferies said. Groww’s MTF book, which had plateaued in August, rose 10% month-on-month to Rs 4,300 crore in September. Commodity turnover on Groww’s platform in the second quarter of FY27 also jumped 26% sequentially.

Large AMCs, excluding Nippon Life India Asset Management, lost equity AUM market share in September, while AMCs outside the top five saw their share of schemes among the top 15 equity schemes rise, Jefferies pointed out. For depositories, delivered quantities, IPOs and demat openings have been improving. The brokerage named Groww, MCX, KFIN and Nuvama as its top picks.

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