Home » ChartOfTheDay » NSE Volumes at a 5 year Low
With a turnover of just 5138 cr., December 26, 2011 has taken volumes to a (near) five year low.
(You have to ignore Diwali Mahurat trading days, the big upper circuit day in May 2009 and a few saturdays of test trading by the NSE)
The chart says it all. Markets are dying.
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Tags: Charts
This entry was posted on Tuesday, December 27th, 2011 at 1:54 PM and is filed under ChartOfTheDay. You can subscribe to any comments to this entry via RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.
Copyright (C) Deepak Shenoy 2005-2013
Some more facts
Cash trading volumesAt a seven-year low
Derivatives trading volumes At record Levels
Options trading volumes Share in derivatives trading risen to 76% from 68% (in 2010) and 52% (in 2009)
Trading Activity in ‘11: Options Trading Account for 3/4ths of Total Derivatives Trading
Volatility in ‘11: Hedging Activity at Record levels
This is as per some foreign broking reports ( assuming it to be reliable )
Never seen such apathy towards equities in the past many years.
12.27.11 at 3:38 PM
Good points Nooresh. Options though are mentioend at notional, not premium so a lot of nifty options that trade at 1 or 2 rupees give Rs. 5000 worth of turnover :)
12.27.11 at 5:14 PM
Markets are dying ? Doesnt it simply mean that this is because most traders are on holidays . Even from the chart there are no clear patterns seen over these 5 years.
12.27.11 at 3:41 PM
The trend is now clearly downwards, and volumes have been abysmal the last few months. India’s GDP has doubled in the meantime – you would expect people to put more money into the markets, but no, they clearly don’t want to. The markets are indeed dyign away…
12.27.11 at 4:59 PM
So what are your views on our dying markets?
Is it a good idea to start taking long calls or is it advisable to wait and watch for the time being?
12.27.11 at 3:41 PM
I really wonder what GDP has to do with share market? What matters is profit, right? If top line has doubled and bottom line remained the same, then why I should pay more for the share?
12.28.11 at 9:27 AM
Technically that means lowered margins which means you’ll pay less. But it also means that growth doesn’t mean profit, at a macro level (which is true, check the Nifty EPS after five years, growth is really little). That means we are paying a similar p/e to what we were paying five years ago, despite little growth…and volumes suck as well.
12.28.11 at 9:46 AM
With due respect……………. the tide will turn.
Just have patience. We have been around long enough to know there are cycles. I keep seeing people buy the media hype and cr_p.
Go to the gym, spend time with your kids, focus on your health.
This will turn …….. be alert then and forget all the surrounding gloom/doom news. Just totally shutout the negativity. (This suggestion is for those sitting in 95%+ in cash. For those sitting in 95%+ equity, God bless! ).
12.28.11 at 8:36 PM
As a layman reading of this chart .. Market looks at bottom of trading volume range .. so possible directions
1) define new low
2) remain at same volume level for a while ..
3) takeoff from now ..
Which has higher probability 1), 2) or 3) .. each one’ own guess :)
01.04.12 at 5:55 PM