Heightened market volatility in October drove Sensex options volumes on BSE to a record high, as choppy markets attracted greater trading interest. NSE index options volumes also rose to a seven-month high amid sizeable market swings, exchange data showed.
Sensex options' average daily premium turnover (ADPT) stood at a record ₹35,481 crore in October, up 53% from ₹23,245 crore in the preceding month. Markets turned excessively volatile amid escalating tensions in West Asia, which pushed oil prices into triple digits.
Reacting to rising oil prices amid heightened tensions in West Asia, the Sensex plunged 1.6% from 30 September to hit a 52-week low of 71,292.88 on 1 October, according to BSE data. Oil prices rose 4% over the same period to $102.31 a barrel, according to online financial portal Investing.com.
The 30-stock Sensex then gyrated nearly 5% from its 52-week low to a monthly high of 74,849.75 on 19 October. The heightened volatility drove Sensex options volumes to a record.
Meanwhile, the Nifty swung 4.5% between its 52-week low of 22,179.9 on 8 October and its monthly high of 23,175.25 on 19 October.