MUMBAI: Mumbai continues to
dominate the equity cash market
segment as its contribution
towards traded turnover on stock
exchanges has risen consistently
this fiscal as well as during the last three years as investors in other
cities dumped equities to invest in
relatively risk-free assets. Recent data on city-wise turnover
of the BSE & NSE in the cash market
segment released by markets
regulator Security and Exchange
Board of India show that Mumbai's
contribution to the total turnover on the BSE in August was up to
50.19 per cent compared with 37.4
per cent during the fiscal 2011-12
and 36.3 per cent in 2010-11. On the National Stock Exchange, the turnover rose
to 62 per cent in August against 60 per cent
during the fiscal 2011-12 and 58.6 per cent
during 2010-11. Barring Mumbai and Hyderabad, all the other 18
cities for which data are available, have seen a
gradual decline in their contribution towards
turnover since the start of this fiscal when
compared with the last three financial years. At the same time,
stock exchanges
recorded a sharp
rise in securities'
turnover during
the period, indicating the
fading interest beyond the main cities despite huge efforts taken
by brokers and exchanges to promote equities by
organising various investors awareness camps. Unnerved by the huge volatility in the equity
market since the global financial crisis of 2008,
investors, especially in smaller cities, moved out
from riskier assets such as equities to relatively
risk-free assets classes such as real estate, gold,
fixed deposits. This explains the slide in the contribution from
smaller cities towards the total turnover,
according to stock brokers. "Retail investors in
non-metro cities dumped stocks in favour of
other high-yield debt instruments like tax-free
bonds, gold and real estate as they were not making money from equities," said Prashanth
Prabhakaran, head of broking business, India
Infoline. "However, the participation from smaller cities in
the equity market will gradually improve once the
current rally, which was driven by foreign
institutional investors, sustains for a longer
period, as only a small part of total household
savings from smaller cities is currently invested in the stock market," he said. The Sebi data also show that the contribution of
the top-four cities - Mumbai, Ahmedabad, Delhi
and Kolkata - towards the total cash market
turnover on the NSE has not changed much in the
last three years and is now at 84 per cent.
Mumbai's share in NSE's turnover climbs to 62 per cent - The Economic Times on Mobile
dominate the equity cash market
segment as its contribution
towards traded turnover on stock
exchanges has risen consistently
this fiscal as well as during the last three years as investors in other
cities dumped equities to invest in
relatively risk-free assets. Recent data on city-wise turnover
of the BSE & NSE in the cash market
segment released by markets
regulator Security and Exchange
Board of India show that Mumbai's
contribution to the total turnover on the BSE in August was up to
50.19 per cent compared with 37.4
per cent during the fiscal 2011-12
and 36.3 per cent in 2010-11. On the National Stock Exchange, the turnover rose
to 62 per cent in August against 60 per cent
during the fiscal 2011-12 and 58.6 per cent
during 2010-11. Barring Mumbai and Hyderabad, all the other 18
cities for which data are available, have seen a
gradual decline in their contribution towards
turnover since the start of this fiscal when
compared with the last three financial years. At the same time,
stock exchanges
recorded a sharp
rise in securities'
turnover during
the period, indicating the
fading interest beyond the main cities despite huge efforts taken
by brokers and exchanges to promote equities by
organising various investors awareness camps. Unnerved by the huge volatility in the equity
market since the global financial crisis of 2008,
investors, especially in smaller cities, moved out
from riskier assets such as equities to relatively
risk-free assets classes such as real estate, gold,
fixed deposits. This explains the slide in the contribution from
smaller cities towards the total turnover,
according to stock brokers. "Retail investors in
non-metro cities dumped stocks in favour of
other high-yield debt instruments like tax-free
bonds, gold and real estate as they were not making money from equities," said Prashanth
Prabhakaran, head of broking business, India
Infoline. "However, the participation from smaller cities in
the equity market will gradually improve once the
current rally, which was driven by foreign
institutional investors, sustains for a longer
period, as only a small part of total household
savings from smaller cities is currently invested in the stock market," he said. The Sebi data also show that the contribution of
the top-four cities - Mumbai, Ahmedabad, Delhi
and Kolkata - towards the total cash market
turnover on the NSE has not changed much in the
last three years and is now at 84 per cent.
Mumbai's share in NSE's turnover climbs to 62 per cent - The Economic Times on Mobile
