Some stocks like Nalco, United Breweries, etc see spike in delivery-based volumes

Investor aversion to stocks these days is probably the highest since mid-2013 on account of the selloff, but that hasn’t stopped stock pickers from selectively lapping up winners. Out of BSE 500 index stocks, 15 have seen a steady increase in delivery-based volumes in the last three months. This is at a time when the overall delivery volumes have seen a decline.

Delivery based volume is an important indicator because it shows whether the interest in buying the stock is coming from investors who will buy and hold for a long time or from traders who merely want to make a quick buck.

The average delivery-based volumes in stocks such as Nalco, Brigade, Gujarat Mineral Development, United Breweries, Ajanta Pharma and Indiabulls Housing among others have continuously risen in the past three months on both the stock exchanges.

According to the latest data available with the exchanges, the delivery ratio for all stocks was just 39 per cent so far in February compared to 42 per cent in January, the lowest since April 2014.