Business News: Nifty Expiry Shifts to Monday, What Will Be Its Impact on Traders? Know What Experts Say

Business News: Starting April 4, 2025, Nifty futures and options (F&O) contracts will expire on Mondays instead of Thursdays. According to NSE, geopolitical events over the weekend have a substantial impact on markets, making Monday a more relevant expiry day. Experts Deven R Choksey and Chandan Taparia express concerns about India’s derivatives sector, which has 400 times the turnover of the cash market. Derivatives increase liquidity, but excessive speculation can disrupt the financial system. The focus is still on increasing derivatives rather than strengthening the underlying cash market, creating concerns about long-term market stability. 

Impact of Nifty Expiry Shift

The change in expiry is also viewed as a competitive strategy, as the BSE’s derivative market share has grown to 18-22%. The shift raises possible issues for traders, notably in options trading. The two-day weekend gap may cause more rapid premium decay and increased volatility on Mondays. Furthermore, traders familiar with the decay in Bank Nifty may now shift their techniques to the Nifty or Sensex, boosting market pressure. Automated and algorithmic traders will struggle due to a lack of historical data for back testing under the new expiry structure.