Financial markets turnover zooms 89.5% in H1

Turnover of equity markets jump up to Rs 23,65,202 cr

The aggregate turnover of the financial markets, including the cash and derivatives markets in equities, and the debt market, increased by a whopping 89.5 per cent in the first-half of the calendar 2004 as against a 36 per cent rise in the same period of calender 2003.

In the first-half of calender 2004, the market turnover aggregated at Rs 36,91,727 crore, 89.5 per cent higher than the Rs 19,48,322 crore turnover in the corresponding period of 2003.

The share of the equity market in the total turnover increased from 41.2 per cent to 64.1 per cent, while the share of the debt market in total turnover declined from 58.8 per cent to 35.9 per cent. Turnover in the equity markets was at Rs 23,65,202 crore and the derivatives segment took the lion's share at 61 per cent (Rs 14,34,936 crore).

The cash market was relegated to the second position with a 39 per cent share (Rs 9,30,265 crore). The turnover on the wholesale debt segment of the National Stock Exchange declined 11.2 per cent to Rs 5,44,269 crore, while the turnover in subsidiary ledger accounts increased 46.8 per cent to Rs 7,82,257 crore.

The turnover in the cash market on the two major exchanges ""BSE and NSE "" almost doubled (98.7 per cent) to Rs 9,30,265 crore in the first half of 2004. In the first half of 2003, the cash market turnover had declined 5 per cent over the same period of the previous year.

The NSE, which accounted for 68.2 per cent share of cash market transactions, reported a 97 per cent jump this year to Rs 6,32,443 crore, while the rest went to the BSE. At Rs 2,94,900 crore in the first half of 2004, the BSE has reported a massive 106 per cent jump in cash market business.

In the first four months of calender 2004, the segment witnessed more than 100 per cent jump in turnover.

The turnover increased 108.6 per cent in January over the same period of 2003, 123.1 per cent in February, 145.2 per cent in March and 108.8 per cent in April.

While the year-on-year growth rate has slowed down to 87.5 per cent in May and 40.8 per cent in June, both exchanges are still at levels double that of turnover in the same period last year.

The derivatives segment of the capital markets reported an excellent 329.1 per cent growth in the first half of 2004 to Rs 14,34,936 crore. The derivatives segment of NSE reported a whopping 330.3 per cent growth in notional turnover to Rs 14,29,809 crore.

At the same time, the BSE has reported a 71.8 per cent rise in notional turnover to Rs 7,131 crore. During the period, the NSE accounted for 99.5 per cent share in the total derivatives market turnover. The NSE had reported a record monthly turnover of Rs 3,27,850 crore in January 2004.

Indeed, the NSE's derivatives segment has grown more than 100 per cent in each of the first six months of 2004. In the first three months of calender 2004, the segment had reported more than a 400 per cent jump in turnover.

The wholesale debt market (WDM) segment of the NSE recorded a 11.2 per cent decline in turnover to Rs 5,44,269 crore compared with Rs 6,12,761 crore in the first half of 2003.

Calender 2004 started on a sluggish note as the turnover dropped 44.5 per cent in January to Rs 77,533 crore.

The trend reversed in March when turnover increased 79.7 per cent to Rs 98,806 crore, and another 32.1 per cent in April before declining 26 per cent in May and 35.6 per cent in June.