Stock market turnover sees marginal increase in '08: Survey

With the financial meltdown keeping investors away from the stock market, trading volumes at the country's two leading bourses were impacted in 2008 but managed to see a marginal increase over the year ago.     

The spot market turnover (which is the value of the trades) for National and Bombay Stock Exchange amounted to Rs 45,12,563 crore in 2008, while it was Rs 45,08,709 crore at the end of 2007, according to survey said.     

"The turnover in the spot market on the NSE continued its upward trend in 2008, while the BSE spot market turnover registered a decline of 6.4 per cent," said the pre-budget Economic Survey for 2008-09 tabled in Parliament today.     

At the end of 2008, the turnover on the BSE spot market was at Rs 13,24,053 crore, down 6.41 per cent from Rs 14,14,727 crore at the end of 2007.     

At the spot market on the NSE, the trading volume stood at Rs 31,88,510 crore, up 3.05 per cent from Rs 30,93,982 crore in 2007.     

"The turnover in the derivatives market on NSE and BSE were lower by 2.4 per cent and 56.8 per cent respectively in 2008," the Survey said.     

While the turnover at the NSE derivatives market stood at Rs 1,16,54,375 crore at the end of 2008, from Rs 1,19,40,877 crore a year-ago, in the BSE derivatives segment it was at Rs 75,178 crore, against Rs  2,19,824 crore at the end of 2007, according to the Survey. 

The survey noted that bearish trend in the Indian equity markets has pulled down the market capitalisation of shares traded on the BSE and NSE.     

"Market capitalisation to GDP ratio improved from 85.5 per cent at end March 2007 to 156.7 per cent on January 8, 2008 before declining to 109.5 per cent by end of March 2008 and further dipping to 49.7 per cent at the end of March 2009," the Survey noted.     

The Survey pointed out that on a year-on-year basis, the market capitalisation which had reached record levels in 2007, dipped in the range of 48 per cent to 54.6 per cent at end December 2008.     

The market capitalisation of all listed companies at the end of December 2008 stood at Rs 31,62,131.96 crore, while it was at Rs 66,49,536.45 crore at the end of December 2007.