New Delhi, June 19 -- Options trading activity on both BSE and National Stock Exchange (NSE) plummeted to nearly four-month lows in the second week of June, as a sharp decline in trader participation coincided with the escalating Middle East conflict. A regulatory overhang from a high-frequency trading investigation might have also contributed, market experts said.

Analysts said that many traders have opted to sit on the fence for a bit till greater clarity emerges on both fronts.

During 9-13 June, BSE witnessed a 39% fall in average daily premium turnover (ADPT) of Sensex options to Rs.10,511.48 crore from an average Rs.17,187 crore the week prior (2-6 June). In the same period, NSE's ADPT sank 21% to Rs.36,045 crore from Rs.45,746 cro...