Average daily turnover in cash segment of Indian equity markets at Rs 66,914 crore in September

6 Oct 2022 , 09:41 AM

A comeback in the stock market and a consistent inflow of new investors have caused equity trading volumes to rise from June lows. The cash market segment’s average daily turnover (ADTV) (both NSE and BSE combined) was Rs66,914 crore in September, up 4.3% month over month (MoM) and 41% above June levels. The cash segment’s ADTV, however, is still 8% behind the total of Rs 73,245 crore from April.

In the meantime, the options section helped the derivatives market reach new trading volume records. The notional turnover for the futures and options (F&O) category on the combined NSE and BSE was Rs15.3 trillion in September, up 12 per MoM and 37% from levels in June.

Industry insiders claimed that after the market’s dramatic recovery from the June lows, retail traders had started trading again. Growth in the number of Demat accounts is another indication of retail interest. The number of Demat accounts in the nation surpassed 100 million for the first time in August thanks to the addition of nearly 2.2 million new accounts, the largest in four months. The number increased by 2.11 million in September, bringing the total to 102.61 million.

The Federal Reserve’s aggressive monetary policy resulted in a boom in the value of the US dollar and Treasury securities, which contributed to a spike in market volatility in September. The Nifty50 index dropped by 3.74%, the Nifty Midcap 100 index dropped by 2.6%, and the Nifty Smallcap 100 index down by 1.94%. Additionally, for the first time in three months, flows from foreign portfolio investors (FPI) became negative. In September, they sold shares worth more than Rs13,000 crore.

However, the local market’s decline was far less severe than that of its international competitors. As an illustration, the US Dow Jones index fell 9% last month. It has, however, had a rapid recovery, rising 5.5% through the first two days of the week. Additionally, domestic equities and trade volumes are anticipated to benefit from the shift in attitude in the US.

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