NSE Cash Market Turnover Rises Above Rs 21 Lakh Crore After Two Months Of Decline

Value of total trade made in the National Stock Exchange of India's cash market segment rose in April, after declining for two straight months.

Turnover for the segment grew 14%, above the Rs 21-lakh-crore mark, maintaining its position as the segment with the second highest turnover.

Individual investors maintained the highest share of clients participating in the cash market segment and, in fact, gained share by 390 basis points during April.

Foreign investors recorded a drop in share of participation by 462 basis points. It is in line with the trend of declining FPI ownership in Indian equities, which continues to be around 12-year lows.

The stock futures segment maintained the highest turnover, hitting a new monthly surge of Rs 31.5 lakh crore in April.

The surge was again led by retail investors, whose share in participation for the segment grew by over 102 basis points, while that of foreign investors fell by 54 basis points.

Proprietary traders continued to maintain the highest share of participation in the segment at 35.2% of the total turnover.

Turnover for the index futures segment declined for the third month in a row, led by a drop in participation by proprietary traders and others in April.

Share of proprietary traders' participation in the segment fell by 125 basis points, while that of others declined 104 bps.

NSE defines the "other" category of clients as partnership firms, limited liability partnership, trust/society, statutory bodies and non-government organisations, among others.

Based on contract premium, turnover for the stock options segment grew after a three-month decline, with a rise in participation by retail investors, whose share grew by 52 bps, as against a decline of 46 bps for FPIs.

This segment has seen the highest surge in turnover over a 12-month trailing period, growing threefold against a twofold rise in that of the cash market segment.

The index options segment's turnover based on premium value of contracts fell for the second consecutive month, led by a drop in share of participation by proprietary traders, falling by 68 bps, while that of individual traders grew by the same amount.

While this is the third highest segment based on turnover, it has grown the least on a 12-month trailing basis.

NSE has maintained its position as the exchange, with a 97% global share in terms of contracts traded for the equity index options segment, a report by the exchange said.