NSE has registered a surge in cash market trading volumes from the southern region in the last two years.

The daily average gross turnover in cash market in Kerala increased to ₹466 crore in FY14-15 against ₹324 crore in the previous fiscal -- a growth of 44 per cent. The client base has also climbed by 16 per cent.

Sentiment, stability help

Improved market sentiments following a stable government at the Centre, renewed thrust on economic and financial reforms, and higher retail participation, among others, contributed significantly to the growth in volumes, Ravi Varanasi, Chief - Business Development, NSE, said.

The daily retail volumes across the country in the cash market also increased 77 per cent to ₹8,795 crore against ₹4,962 crore in FY13-14, he said. In the derivatives segment too, there has been substantial growth. The daily average volumes have gone up to ₹2.28 lakh crore, showing a 50 per cent jump compared with the ₹1.52 lakh crore registered in FY13-14.

Positive effect on MFs

Within derivatives, stock futures have shown the most significant growth of 73 per cent.

The positive sentiment has also spread to the mutual funds that are traded on the exchanges. The total number of mutual fund orders on NSE has gone up 60 per cent to 3.76 lakh from 2.34 lakh. The total traded volume also increased 28 per cent to ₹3,444 crore against ₹2,698 crore.

The Interest Rate Futures or NSE Bond Futures (NBF II) too, saw volumes rising. In April 2014, the product clocked volumes of ₹17,603 crore, which increased to ₹53,824 crore in March 2015.

Exchange-traded funds have gained a lot of popularity in recent years with the NSE having more than 90 per cent market share in the segment. The assets under management of ETFs based on NSE indices have grown to ₹6,385 crore from ₹819 crore, a whopping 680 per cent growth.

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