NSE equity cash, derivatives segment turnover sees first fall in 12 months

Trading volumes, both in the equity cash and derivatives segment, declined amid a sharp fall in the equity markets triggered by large outflows from foreign portfolio investors (FPIs). The average daily trading volumes (ADTV) fell nearly 20 per cent month-on-month (M-o-M) to Rs 72,178 crore (BSE and NSE combined), while the combined ADTV for the derivatives segment was down almost 2 per cent to Rs 351.7 trillion. During the month, the benchmark Nifty came off by as much as 5 per cent as FPIs accelerated their selloff with the 10-year US Treasury yields breaching 5 per cent.

The 50-share index recovered to finish the month with a loss of 2.8 per cent, its worst monthly showing in 10 months. FPIs pulled out nearly $3 billion domestically in the cash segment—the most since January. Broking industry officials said the spike in volatility and uncertain market outlook deterred investors from placing large trading bets, which weighed on trading volumes. Incidentally, NSE derivatives turnover saw its first M-o-M decline in 12 months. Meanwhile, BSE continued to grow its derivatives market share. It rose to 9.3 per cent in October, from 7.4 per cent in the preceding month. Until June, BSE’s derivatives market share was close to zero.