In theory, when an investor takes delivery of a stock, it is usually seen as a sign that he is willing to hold it and is confident about the stock’s prospects.
Investors are buying some stocks on every dip, presumably for the longer term, despite the recent turmoil in the overall market, showed deliverable volumes data from both the exchanges. The delivery-based volumes on some of the stocks, such as Marico, Kansai Nerolac, Oberoi Realty, Supreme Industries, City Union Bank, EIH and Vinati Organics, have seen a steady rise in the past few days. The Sensex has declined 7 per cent in the past month, while BSE midcap and smallcap indices have plunged by 11.5 per cent and 13.5 per cent respectively.
In theory, when an investor takes delivery of a stock, it is usually seen as a sign that he is willing to hold it and is confident about the stock’s prospects.
When delivery volumes in a stock rise, it means investors are willing to hold it for a longer period. In a bearish market, several market participants prefer to square up holdings the same day. Delivery-based trades in the cash market generally peak when the market is near its highs.
ET takes a look at some stocks that have seen a rise in delivery volumes of late.
