A recent report by foreign brokerage Jefferies highlights notable shifts in India's financial markets for June 2026, revealing a decline in BSE's index options market share and significant growth for Groww's Margin Trading Facility (MTF) book.
BSE Experiences Decline Amidst Market Dynamics
The Bombay Stock Exchange (BSE) saw its market share in index options fall to 32.4% in June. This reduction is primarily attributed to the National Stock Exchange (NSE) having an additional weekly expiry during the month. BSE's average daily turnover (ADTO) for index options also decreased by 12% month-on-month (MoM) to Rs 26,200 crore. The premium-to-notional turnover ratio for BSE saw a slight decline from 12.9 basis points (bps) in May to 12.2 bps in June 2026.
Across the broader industry, the index options premium ADTO for June stood at Rs 80,900 crore, an 8% MoM drop. Similarly, the industry's cash ADTO was down 7% MoM. For the June quarter, BSE's ADTO growth was 2% quarter-on-quarter (QoQ), a stark contrast to the 49% growth recorded in the March quarter, though its premium-to-notional turnover improved to 12.5 bps in the June quarter from 11.8 bps in the March quarter.
Groww Leads Brokerage Growth in MTF
In the brokerage sector, Billionbrains Garage Ventures Ltd, the parent company of Groww, demonstrated strong performance, with its book growth and client additions outpacing the overall market. Groww's MTF book, in particular, experienced a significant surge, growing by 14% MoM to reach Rs 3,800 crore. The total industry MTF book expanded by 6% MoM to Rs 1.3 lakh crore, indicating a broader uptick in margin trading activity.
Overall, brokers witnessed an improvement in both options and cash contracts in June on a month-on-month basis. Equity option contracts traded were up 12% MoM, recovering after a decline in May, and cash contracts traded improved by 7% MoM. However, for the June quarter, option contracts fell 5% QoQ, while cash contracts rose 6% QoQ.
MCX and Asset Managers Show Mixed Results
Commodity exchange MCX Ltd also saw mixed results. Its options ADTO increased by 8% MoM, driven by accelerated bullion ADTO, while its futures ADTO declined by 8% MoM.
Among asset managers, Nippon Life India Asset Management Ltd and ICICI Prudential Asset Management Company Ltd reported higher net equity flows relative to their respective asset market shares. Jefferies noted that a low number of initial public offerings (IPOs) and demat account openings continued to pose challenges for depositories. The brokerage firm identified Groww, MCX, KFin Technologies, and Nuvama Wealth Management as its preferred picks within the sector.