A major change is set to occur in the Indian stock market after 25 years. Nifty's weekly expiry will now take place on Tuesday instead of Thursday, while Sensex's expiry will remain on Thursday. This change will be effective from September 2, 2025, and will directly impact derivative trading, volumes, and investor strategies.
Stock Market Alert: A significant change in expiry rules has been made in the Indian stock market after 25 years. The National Stock Exchange (NSE) has changed Nifty's weekly expiry from Thursday to Tuesday, with the first expiry on September 2, 2025. Meanwhile, the Bombay Stock Exchange (BSE) has maintained Thursday as the expiry day for Sensex. This step was taken after SEBI's intervention to resolve the ongoing dispute between the two exchanges. This change may lead to new strategies and volume patterns in the derivatives market.
A New Chapter in Nifty Expiry
Nifty futures were launched in the stock market on June 12, 2000. The first expiry took place on June 29, 2000. At that time, only monthly expiries were available, and they occurred on the last Thursday of every month. Later, in December 2019, Nifty's weekly expiry was introduced and also set for Thursday.
Now, after approximately two and a half decades, the expiry day has been changed. August 28, today, Thursday, will be the last Thursday expiry for Nifty. After this, Nifty's weekly expiry will occur every Tuesday.
When the New Rule Will Come into Effect
The first Tuesday expiry under the new rule will be on September 2. This means investors will no longer have to wait until Thursday for expiry. On the other hand, the Bombay Stock Exchange (BSE) has decided to retain Thursday as the weekly expiry day for Sensex.
Thus, the derivatives of both exchanges will now expire on different days. Nifty on Tuesday and Sensex on Thursday.
Impact on Investors and Traders
This change will directly affect the strategies of investors and traders. Previously, Thursday was well-known for expiry, but now Tuesday will get this new identity. Nifty's weekly expiry will now occur just three trading sessions later. Meanwhile, Sensex's expiry will be six trading sessions later.
Investors will have to adopt new patterns in their trading plans and option strategies. This could also impact market volumes and volatility.
Why the Change Was Necessary
Actually, there was a long-standing tug-of-war between NSE and BSE regarding expiry days. NSE had earlier announced changing Nifty's weekly expiry to Monday. BSE objected to this decision. The matter reached SEBI.
SEBI issued a consultation paper to seek suggestions from both exchanges. Following this, it was decided that NSE would hold Nifty's weekly expiry on Tuesday, and BSE would conduct Sensex's expiry on Thursday. Thus, the expiry days for both indices became distinct.
New Pattern Will be Seen in the Market
Now that Nifty and Sensex expiries will be on different days, the derivative activities of both indices will be clearly distinct. This will also bring changes in option trading strategies.
Experts believe that this could create new opportunities for hedging and arbitrage in the market. Additionally, the graphs of volume and volatility will also be observed differently.
Why This Change is Historic After 25 Years
This move is considered historic in the Indian stock market because such a significant change in Nifty's expiry is happening for the first time. Since the launch of Nifty futures in 2000, the expiry has always been on Thursday.
Now, this tradition will be broken, and Tuesday will be recognized as the new expiry day. This will not only change investors' perspectives but also redefine the market's operational mechanisms.
