August freeze: Cash turnover caught in valuation cold snap, shows data

But derivatives trading turnover thaws, rising as investors warm up to short-term bets

The equities cash market turnover declined for a second consecutive month in August, reflecting investor scepticism due to valuation concerns. Conversely, trading turnover in the derivatives segment — where investors engage in short-term punts — edged higher, buoyed up by sustained market optimism.
 

The average daily trading volume (ADTV) for the cash segment fell by 13 per cent to Rs 1.31 trillion, marking the lowest level since May. In contrast, the ADTV for the futures and options (F&O) segment rose by 1 per cent to a new record high of Rs 502 trillion.

However, F&O trading volumes are