A 20 percent decline in the combined turnover of the cash segment in the country's stock markets

MUMBAI: The daily average cash volumes in the country's stock markets in the current financial year have fallen by twenty percent compared to the last financial year. This is the biggest decline in the last 11 years. The combined average daily turnover in the equity cash segment on the country's two major stock markets, BSE and NSE, fell by 20.40 percent to Rs 57,700 crore compared to the previous financial year, according to a research firm's report.
This is the biggest drop since FY2012. In FY 2012, the average daily turnover decreased by 23.80 percent year-on-year to Rs 14,081.72 crore. In FY 2021, the volume increased by 70.06 percent to an average figure of Rs 66,415.76 crore.
As a result of high volatility and poor returns, there are signs of waning interest of small investors in the equities cash segments of the country's stock markets.
After the Russia-Ukraine war, the stock markets of the world, including India, have seen weak returns for the last one year. In the period of Corona, an increase in work was seen in the stock market by retail investors.
Retail investors are moving towards debt instruments due to high interest rates on debt instruments and inflationary conditions against weak returns in the stock market.
With inflation coming down and interest rates stabilizing, retail investors are expected to re-enter the market. On the other hand, derivative segments have seen all-time highs in volumes every month since last year. The average daily turnover in the derivatives segment in the current financial year stood at Rs 150.67 lakh crore, which is 120 per cent higher than last financial year's Rs 68.35 lakh crore.
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