Average daily turnover of the cash segment at the NSE and BSE rose 39% and 57% in March, compared with their respective one-year average.
Delivery-based trades in India are rising, indicating that a section of the market is factoring in a major recession — and wants to eject at the first opportunity. Delivery percentage on the NSE and BSE reached 36.87% in March, higher than their long-term average, according to data compiled by ETIG.
Indian markets have lost more than half a trillion dollars in market capitalisation since the Covid-19-induced selloff began late February. Average daily turnover of the cash segment at the NSE and BSE rose 39% and 57% in March, compared with their respective one-year average.
Average daily turnover of cash segment of the NSE stood at Rs 48,975 crore in the 19 days of trading in March, a record high level. The selling pressure can be gauged from the fact that the number of trades on the NSE rose 66% to 2.02 crore in March compared with last one-year average of 1.21 crore, according to NSE data.
The rising delivery in the falling market shows investors are selling their core portfolio holdings to minimise loss as ‘return’ of capital takes precedence over the return on capital.
