The National Stock Exchange has registered a surge in cash market trading volumes from the southern region in the last two years.
The daily average gross turnover in cash market in Kerala has increased to ₹466 crore in FY 2014-15 against ₹324 crore in the previous fiscal, registering a 44 per cent growth in volume. The client base has also gone up by 16 per cent.
Improved market sentiment following a stable government at the Centre, renewed thrust on economic and financial reforms, higher retail participation etc., contributed significantly to the growth in volumes, Ravi Varanasi, Chief Business Development, NSE, said.
The NSE’s benchmark index CNX Nifty 50 has offered 26 per cent returns in FY 2014-15. The daily retail volumes across the country in the cash market has also increased by 77 per cent to ₹8,795 crore against ₹4,962 crore in FY 2013-14, he said.
In the derivatives segment, there has been a substantial growth and the daily average volumes have gone up to ₹2,28,824 crore, showing a 50 per cent jump compared with ₹1,52,228 crore in FY13-14. Within derivatives, the stock futures have shown the most significant growth of 73 per cent.
Mutual fund orders
The positive sentiment has also rubbed off on mutual funds that are traded on exchanges. The total number of mutual fund orders on NSE has gone up by 60 per cent to 3,76,215 from 2,34,935. The total traded volume has also increased by 28 per cent to ₹3,444 crore against ₹2,698 crore.
The Interest Rate Futures or NSE Bond Futures (NBF II) has seen high volumes. In April 2014, the product clocked volumes of 17,603 crore, which increased to 53,824 crore in March 2015.
ETFs have gained a lot of popularity in recent years with the NSE having more than 90 per cent market share in exchange traded funds. Assets under management of ETF based on NSE indices have grown from ₹819 crore to ₹6,385 crore, clocking a growth of 680 per cent.