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Virendra Verma

Mumbai , March 30

WITH stock prices witnessing a fall this month, trading volumes on the stock exchanges have seen a drastic fall with average volume down by more than 40 per cent.

Brokers attribute the fall in the trading volumes to lack of interest by market players due to falling stock prices and the financial year-end when most of the investors avoid big purchases.

"There is not much fresh commitments by players. People are holding their investment decision before the beginning of the new financial year," said Mr Nikhil Thacker, Assistant Vice-President (Research), Asit C Mehta Investment Intermediates.

Trading volume on the cash segment of BSE shows that it (number of shares traded) has fallen by around 50 per cent from the peak volume touched this month.

Volumes have fallen from 35.65 crore, traded on March 7 (highest this month), to today's volume of 17.73 crore shares, a fall of 50.26 per cent.

On the NSE, the volume is down from high of 47.92 crore shares on March 4 to 28.07 crore shares, a fall of 41 per cent.

However, the fall in value terms is much lower. For instance, on the BSE, turnover is down by 28.74 per cent from a high of Rs 3,116 crore on March 4 to today's turnover of Rs 2,220.39 crore.

On the NSE, the turnover fell by 34.36 per cent, from Rs 6,484.68 crore touched on March 7 to today's turnover of Rs 4,256 crore.

There has also been fall in the turnover and volume on NSE's derivatives segment. But, in the last two days it has increased due to the expiry of derivatives contract on Thursday.

Just before the expiry of monthly contracts, market players either square-off their transactions and if they have to carry forward their positions they sell the previous contracts and buy the next month contract.

In both the situations trading activity increases.

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