NSE gains trading volume in Delhi, Bangalore, small cities

Tags: News
India’s two main stock exchanges National Stock Exchange and Bombay Stock Exchange are national in character but their investor bases are largely confined to a few select cities.

An analysis of recent trade turnover data available from the Securities and Exchange Board of India (Sebi) shows while Mumbai continues to dominate the cash market on both the exchanges, there have been subtle, but definitive, shifts in the shares of other cities in total cash market turnover.

Of late, NSE has been seeing more trading by investors from Delhi, Bangalore and some very small cities. BSE has investors from Mumbai and Kolkata contributing higher turnov­ers than before (see charts).

In the first two months of this financial year (FY15), NSE saw Delhi’s share in its cash market turnover rise to 10.8 per cent from 9.4 per cent in FY14 and 7.5 per cent in FY13. Bangalore is another city whose investors are trading more in NSE’s cash market, helping the city’s share to the total turnover shoot up from a miniscule 0.3 per cent in FY13 to 1.9 per cent this April-May.

In terms of value, NSE saw average daily trades worth Rs 18,170 crore in the first two months of FY15, while BSE clocked Rs 3,640 crore, according to Sebi data.

The turnover levels on both the exchanges are higher than those in previous years. Between FY11 and FY14, NSE’s average daily cash market turnover fell from Rs 14,030 crore in FY11 to Rs 11,290 crore in FY12 and further to Rs 10,830 crore in FY13, before rising to Rs 11,190 crore in FY14. The corresponding figures for BSE in these years stood at Rs 4,330 crore, Rs 2,680 crore, Rs 2,200 crore and Rs 2,080 crore, respectively.

In the case of NSE, the incremental turnover from investors in Delhi and Bangalore has come at the expense of shares of Mumbai and Kolkata, whose investors are trading more on the BSE platform. During April-May, Mumbai’s share in NSE’s turnover stood at 57.9 per cent, down from 63.8 per cent two years ago.

Kolkata-based investors commanded a high share of 8.6 per cent in NSE’s cash market three years ago, in FY12, which has fallen to 6.8 per cent during April-May.

The distribution of turnovers in the Sebi data is for cities uploaded in the unique client code database of each stock exchange for clientele trades and members’ registered office cities for proprietary trades.

There were interesting shifts in the ‘other cities’ group as well. Investors from urban centres beyond the specified 20 cities have been trading more on NSE, with their collective share going up from 8 per cent in FY13 to 9 per cent in April-May. Their collective share on BSE has fallen sharply from 22.0 per cent in FY12 to 15.9 per cent this year.

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