Total market turnover hits $1.4 trillion in FY04

Turnover of cash, derivatives and debt marts surge 88%

The aggregate turnover of the cash, derivatives and debt markets surged 87.8 per cent to $1.4 trillion (Rs 63,28,281 crore) in 2003-04 against $709.8 billion (Rs 33,69,239 crore) in 2002-03.

Turnover in the equity markets alone accounted for 58.5 per cent (Rs 37,04,659 crore) of the total turnover, and within this, derivatives dominates with a 57 per cent share (Rs 21,17,024 crore).

The cash market turnover slipped to second position at 43 per cent (Rs 15,87,636 crore) of the total equity turnover.

In 2003-04, the whole sale debt market turnover on the National Stock Exchange was at Rs 13,11,086 crore, while the turnover in the subsidiary ledger accounts stood at Rs 13,12,536 crore.

Cash market (BSE & NSE): Fiscal 2003-04 started on a sluggish note as far as the cash market is concerned. During the first two months of the year, the segment reported a drop in turnover. In April 2003, the combined turnover of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) fell 15.09 per cent from Rs 82,183 crore of 2002-03 to Rs 69,785 crore in 2003-04. In May, the turnover dipped by 7.12 per cent to Rs 77,189 crore.

In June, however, the trend reversed smartly, with turnover rising 28.1 per cent to Rs 86,496 crore.

From July onwards, the cash market clocked an excellent growth in turnover. In July, the segment achieved a 43.1 per cent growth, followed by 74 per cent in August.

September and October witnessed hectic buying by foreign institutional investors (FIIs). As a result, these two months recorded more than 100 per cent jump in turnover over the same periods of the previous year.

While September registered a 108.6 per cent rise in turnover to Rs 1,47,918 crore, in October, the segment clocked a record turnover of Rs 1,66,313 crore with a year-on-year growth of 109.1 per cent.

Compared with September and October, the next two months showed a lower growth in turnover. In November, turnover increased 78.2 per cent and in December it was 77.8 per cent, again year-on-year.

Again in January 2004, posting a year-on-year growth of 108.64 per cent, the segment posted a turnover of Rs 1,99,565 crore. Of which BSE and NSE accounted for Rs 65,323 crore and Rs 1,34,241 crore, respectively.

February showed a 123.07 per cent rise in turnover to Rs 1,60,031 crore, and March has been spectacular with a record 125.32 per cent jump to Rs 1,42,881 crore.

In volume terms (number of shares traded), the BSE showed a 69.2 per cent rise from 2210.62 crore shares in 2002-03 to 3740.51 crore shares in 2003-04, while NSE's volume almost doubled from 3,640 crore shares to 7,089 crore shares.

Derivatives (NSE & BSE): The derivatives segment of the NSE reported a whopping 378.56 per cent growth in notional turnover. The aggregate turnover went up from Rs 4,39,865 crore in 2002-03 to Rs 21,05,027 crore in 2003-04.

At the same time, BSE witnessed a 384.66 per cent surge in notional turnover from Rs 2,475 crore of 2002-03 to Rs 11,996 crore. During the year, NSE accounted for a 99.4 per cent share of the total derivatives turnover. The NSE has witnessed a record monthly turnover of Rs 3,24,063 crore in January 2004.

Wholesale debt market (NSE): The wholesale debt market (WDM) segment of the NSE recorded a 22.7 per cent rise in turnover from Rs 10,68,702 crore in 2002-03 to Rs 13,11,086 crore in 2003-04. On seven occasions in 2003-04, the turnover crossed Rs 1,00,000 crore on a monthly basis.

In May, the turnover rose 131.7 per cent year-on-year to Rs 1,23,359 crore, while in June it jumped 132.5 per cent to Rs 1,26,672 crore. The segment had record a turnover of Rs 1,62,737 crore in August 2003.