Mumbai Alone accounts for 60% of Stock Exchange Equity Trading

Discussion in 'Economy & Infrastructure' started by afako, Oct 25, 2012.

  1. afako

    afako Regular Member

    Aug 18, 2010
    Likes Received:
    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
  3. uvbar

    uvbar Regular Member

    Oct 9, 2012
    Likes Received:
    mumbai rocks proud to be a mumbaikar
    afako likes this.

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