Market turnover tops Rs 82 trillion

At Rs 81,90,607 crore, turnover for 2005 stands at 2.75 times of estimated GDP.

The Indian financial market turnover topped Rs 81,90,607 crore (Rs 82 trillion) in 2005, which is almost 2.75 times of India's estimated GDP of Rs 33,00,000 crore (Rs 33 trillion). The turnover has risen by 47 per cent from Rs 66,101,83 crore (Rs 55.68 trillion) in the previous year.

The financial markets include the equity (cash and futures & options) segment on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the wholesale debt markets (WDM) on the NSE and commodity futures on the Multi Commodity Exchange (MCX), the National Commodity & Derivatives Exchange (NCDEX) and the National Multi-Commodity Exchange of India (NMCE).

The year 2005 saw consolidation of commodity futures with both major exchanges posting hefty jumps in turnover. The NCDEX remained the biggest commodity exchange with 55 per cent share and witnessed a turnover of Rs 871,486 crore in 2005, up 320 per cent. The NCDEX introduced 31 new commodity contracts to boost its turnover.

The MCX emerged as the fastest growing commodity exchange with its turnover jumping almost nine-fold to Rs 685,360 crore. The MCX, which was second in 2004 with a market share of 24.9 per cent, consolidated itself by cornering 43.4 per cent market share. The exchange introduced 29 new commodity contracts including gold and crude oil during the year.

Derivative products, F&O and commodity futures cornered two-thirds of the total turnover, which went up by 88.4 per cent to Rs 55,09,229 crore. The F&O aggregated turnover was Rs 39,288,05 crore (up 50.8 per cent) while commodity futures clocked a turnover of Rs 15,80,424 crore (up 396 per cent).

The cash markets turnover rose 20.78 per cent to Rs 20,78,483 crore despite several block deals taking place in 2005.

The foreign institutional investors and mutual fund together accounted for 30 per cent share in the cash market turnover. The turnover in the WDM segment declined for two consecutive years in a row.

The NSE remained the most traded financial market with the turnover on the cash, F&O and WDM segments put together accounting for 72.14 per cent of the total turnover.

The NSE aggregated a turnover of Rs 59,09,348 crore, of which F&O accounted for Rs 39,28,805 crore, cash market Rs 13,77,648 crore and WDM Rs 602,895 crore. The BSE showed promise with 31.4 per cent growth in the cash market turnover.