Financial Daily from THE HINDU group of publications
Thursday, May 05, 2005
Financial Daily from THE HINDU group of publications Thursday, May 05, 2005 |
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Markets
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Stock Markets Turnover, volumes dip on bourses Virendra Verma
Mumbai , May 4 TRADING activity on the stock market has considerably slowed down after stock indices touched their peak levels in March this year with turnover and volume dropping by almost half. Brokers attribute the sharp fall in trading activity to lack of investors' interest in the market due to uncertain investment environment. A look at the trading patterns from March onwards on the BSE and the NSE shows that the turnover is down almost by 50 per cent both in the cash and derivatives markets. In terms of volume also the fall is similar. On the NSE cash segment, the turnover is down by 48 per cent at Rs 3,363 crore today from the peak of Rs 6,485 crore on March 7. Number of shares traded fell by 56.26 per cent from 47.92 crore shares traded on March 4 to today's volume of 20.96 crore. On the BSE's cash segment, the turnover is down by 49.75 per cent to Rs 1,566 crore today compared to peak turnover of Rs 3,115.58 crore on March 4. In volume terms, the fall is 47 per cent from 25.21 crore shares traded on March 4 to 13.44 crore shares. The situation on NSE derivatives segment is also similar. In value terms, trading activity is down by 62 per cent from Rs 19,622 crore touched on March 31 to today's turnover of Rs 7,365 crore. In terms of number of contracts traded activity is down by 36.5 per cent from 5.34 lakh contracts traded to 3.39 lakh. The turnover is down by 45 per cent compared to average turnover of Rs 13,584 crore in March. "There is no clarity on the trend of the market so the activity in the market is reduced," said Mr Arun Kejriwal, Investment Strategist, Angel Broking. Other players said that with fall in the stock price from their peak levels, the interests of the market players have come down. Low FIIs activity since April onwards is also considered a factor for the fall in turnover. The FIIs' activity in the equity market has come down from average of Rs 2,000 crore (gross purchases and sales) to around Rs 1,200 crore in April.
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