| The BSE turnover, which touched Rs 4,859.82 crore when the Sensex closed at 11,391 on May 18, shrunk to Rs 3,455.92 crore on Monday. The situation was no different on the National Stock Exchange (NSE) in the cash and derivatives segments. |
| The cash turnover on the bourse on Monday was Rs 7,028.40 crore, as against Rs 10,565.10 crore on May 18, when the Nifty Index was at 3,388.90. On Monday, the Nifty Index closed at 3,356.05. |
| The biggest fall was seen in the futures & options (F&O) segment, in which the turnover dived by more than a half "" from Rs 44,907 crore to Rs 20,493 crore. |
| "Retail investors are still waiting on the sidelines. Further, in the month of May, several mutual funds were active in the market, after raising a significant amount of cash through NFOs (new fund offers)," said Kunj Bansal, chief investment officer of Religare Securities. |
| Further, analysts said, the level of interest shown by foreign funds had also come down, as compared with the May period. Another reason for the low volume was the shift in activity from large caps to mid- and small cap stocks, they said. |
| "Several good quality mid-cap and small cap stocks were beaten down in the sharp correction in June for no reason. Investors were forced to sell these stocks to provide for margins in the F&O (futures & options) segment," said Rajen Shah, chief investment officer of Angel Broking. |
| Though the frontline stocks had almost fully recovered from their lows in June, mid-cap and small cap stocks had only started to gather momentum. |
| "Mid-cap stocks are trading at a P/E that is 30 per cent less than the P/E of frontline stocks," he said. |
| With the Sensex gaining by over 600 points in August, the analysts anticipated a correction in share prices in the coming days. |
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