Tier-III towns dig deep into stock markets

Kochi, Indore, Jaipur and Patna may soon the find a place on "aimed clientele" segment of country's top broking houses, as these tier-III cities are seeing marked increase in stock market volumes in the last one-year.

With the spread of e-transactions, state capital cities like Bhubaneshwar, Guwahati or metropolitans like Pune, Bangalore could be the future growth areas for the stock market investments, as stock market volumes from these destinations are on the rise, according to a data compiled by the Securities and Exchange Board of India (Sebi).

Kochi's share in the cash segment turnover in Bombay Stock Exchange (BSE) was up by 0.06 per cent to 0.18 per cent during 2005-06 as compared to previous year's 0.12 per cent. Indore's participation rose by 0.07 per cent to 0.53 per cent of total cash segment turnover of BSE last fiscal.

Amongst other cities turning to stock market, Patna, Jaipur, Bhubaneshwar, Baroda and Guwahati have shown good growth, according to the Sebi bulletin for August. However, at the same time, turnover from cities like Mangalore, Rajkot, Kanpur and Coimbatore went down during the same period.

Mumbai continues to dominate over other cities with a 75.05 per cent share of the total cash segment turnover of the BSE in 2005-06, a marginal decline from previous year's 75.33 per cent share.

Delhi increased its share of the BSE cash segment turnover to 3.79 per cent from previous year's 3.05 per cent. However, the national capital's contribution to NSE cash segment turnover, eroded by 1.55 per cent to 13.37 per cent in fiscal year 2005-06.

Meanwhile, in terms of capital mobilisation, Western region dominated over other regions with companies raising Rs 9,206 crore through various instruments in the first quarter of the current fiscal. Northern, Eastern and Southern regions collectively garnered only Rs 2,288 crore for the same period.

North's capital mobilisation stood at Rs 331 crore, East's Rs 440 crore while South stood at second spot with Rs 1,517 crore.

Cumulatively, West and South mobilised Rs 10,723 crore, which is 13 times more than the combined figure of Rs 771 crore raised by companies from North and Eastern regions.