The change in the NSE F&O expiry day will take effect from April 4, 2025, bringing a major shift in the trading schedule for Futures and Options (F&O) contracts. The National Stock Exchange (NSE) has announced that Nifty weekly F&O contracts will now expire on Mondays instead of Thursdays. Additionally, the monthly expiry for Nifty, Bank Nifty, FinNifty, Nifty Midcap Select, and Nifty Next50 will move to the last Monday of the month instead of the last Thursday.
Why is NSE Changing the Expiry Day?
The change in the NSE F&O expiry day comes as part of NSE’s efforts to improve market efficiency and manage trading volatility. By shifting the expiry to Monday, the exchange aims to distribute trading activity more evenly across the week. This change follows the Bombay Stock Exchange’s (BSE) decision to move some of its F&O expiries to Tuesdays, increasing competition between the two major exchanges.
The move is also intended to reduce market congestion on Thursdays, which was previously the most volatile day due to multiple F&O expiries occurring simultaneously. With this shift, traders will need to adjust their strategies to accommodate the new schedule.
Key Changes in NSE F&O Expiry
| F&O Segment | Old Expiry Day | New Expiry Day (From April 4, 2025) |
|---|---|---|
| Nifty Weekly F&O | Thursday | Monday |
| Nifty Monthly F&O | Last Thursday of the Month | Last Monday of the Month |
| Bank Nifty Monthly F&O | Last Thursday of the Month | Last Monday of the Month |
| FinNifty Monthly F&O | Last Thursday of the Month | Last Monday of the Month |
| Nifty Midcap Select Monthly F&O | Last Thursday of the Month | Last Monday of the Month |
| Nifty Next50 Monthly F&O | Last Thursday of the Month | Last Monday of the Month |
How Will This Impact Traders?
The change in the NSE F&O expiry day will have a direct impact on traders who rely on expiry-based strategies. Many traders adjust their positions as the expiry day approaches, leading to price fluctuations. With Monday now being the expiry day, traders will have to rethink their hedging and risk management strategies.
There is also a possibility of increased volatility in the early weeks as market participants adjust to the new schedule. However, over time, it is expected to bring more stability and better distribution of trading volumes across the week.
Impact on Market Volatility
One of the biggest concerns with the change in the NSE F&O expiry day is how it will affect market volatility. Previously, Thursdays were known for sharp price swings as traders squared off their positions. With expiries now moving to Monday, volatility might shift to the beginning of the week instead.
| Factor | Expected Impact |
|---|---|
| Volatility on Mondays | Likely to increase initially |
| Volatility on Thursdays | Likely to decrease |
| Overall Market Stability | Could improve over time |
The shift might also help align NSE’s schedule with global markets, creating a more synchronized trading environment. However, it remains to be seen how institutional investors and retail traders adapt to this change.
Sectors Most Affected by the Expiry Shift
The change in the NSE F&O expiry day is expected to impact certain sectors more than others. Sectors with high derivatives trading volumes may see more fluctuations, especially in the first few weeks.
| Sector | Possible Impact |
|---|---|
| Banking & Financials | High impact due to Bank Nifty’s popularity in F&O |
| IT Sector | Moderate impact as tech stocks see frequent F&O trading |
| Consumer Goods | Retail traders may take time to adjust |
| Energy & Commodities | Weekend global price movements could affect Monday expiries |
| Midcap & Smallcap Stocks | Increased fluctuations due to lower liquidity |
Long-Term Outlook
While the change in the NSE F&O expiry day may cause some short-term disruptions, it is expected to bring positive changes in the long run. The redistribution of trading activity could reduce congestion on Thursdays and create a more balanced trading environment.
Traders, institutions, and retail investors will need to adapt their strategies, but as they get used to the new schedule, the market is likely to find stability. With NSE making this move, it remains to be seen whether other exchanges will follow a similar path.
