Increase in stock market turnover and volume: 12 lakh new demat accounts opened

Ahmedabad, 22 May 2020, Friday

The lockdown imposed in the wake of the Corona epidemic has halted economic activity as well as yield uncertainty, but increased trading volume in Indian stock markets has been boosted by increased investor activity.

Stock markets around the world crashed as global growth stalled due to the Corona epidemic. Even in the Indian stock market, there was a significant pullback in the prices of many stocks, which fell behind the record selling by foreign investors.

In the current scenario, the panic in the market was so widespread that the prices of a number of stocks came down. Leading stocks of well-known companies also saw a 30 to 40 per cent erosion.

Thus, with a number of stocks in the smallcap, midcap and largecap sectors available at bottom prices, Indian stock markets saw a sharp rise in trading volume as investors became more active in the market and bought low-priced stocks at low prices.

According to available data, the total volume on BSE and NSE has increased by 3, 4 and 20 per cent in the last 30, 30 and 40 days respectively. This kind of uptrend has also been seen in the market turnover along with the increase in volume.

According to the exchange's data, turnover has increased by 8% year-on-year to Rs 3 lakh crore in the last 30 days. Turnover at the end of the three months ended March 2020

6 lakh crore, an increase of 3%. On the other hand, the Nifty and the Sensex, the main market indices, have also risen 15 per cent since March 8.

Twelve lakh new demat accounts were opened before the Central Depository Services (CDSL) in March and April, amid a nationwide lockdown and record selling by foreign investors. Thus, these figures also prove that there has been a significant increase in investor activity even in the midst of a hostile environment of lockdown.