The average trading volume (ADTV) of daily continued to increase in April for the second consecutive month. It received the current market’s existing rapid support. The futures and option sector (F&O) segment recorded an increase of 4.5 per cent on a monthly basis and reached Rs 368 lakh crore. Average trading volume in the cash segment daily reached a 2 per cent increase on monthly basis to Rs 1.06 lakh crore.
In March, both F&O and Cash segment had an increase of 22 per cent and 12 per cent respectively on a monthly basis. This increase gives a glimpse of an increase of 3.5 per cent in the Nifty-50 index in April. Earlier in March, there was an increase of 6.3 percent. However, before this increase, there was five consecutive months decline and the Nifty is still 7 percent below its highest level. The midcap and smallcap index are also 10 per cent below their respective levels.
Despite this growth, the average trading volume of daily in cash and F&O segment is about 30 per cent below the highest level of June and September 2024 respectively. Strict rules of decline in markets and F&O trading have affected the volume. According to market participants, the return of foreign portfolio investors (FPIs) has also affected the morale of investors.
On Friday, FPI bought shares worth Rs 2,770 crore and thus it was a 12th consecutive trading session of their net purchases. This is the longest phase of pure purchases in about two years. In the last 12 sessions, FPI has invested Rs 40,157 crore in the market.
Experts said that if the market maintains its pace and the market regulator SEBI F&O avoids strictness on the rules, the trading volume may continue to increase. In February, SEBI proposed several changes including revised methods of calculating open interest, adjusting position in the market and implementing the new border on single index and index derivatives. The market regulator is currently reviewing the feedback of the market on these proposals. ,
First Published – May 4, 2025 | 10:43 pm IST
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