Delivery-Based Trading Declines 4.2% In July
The delivery-based trading seems to be declining on the Bombay Stock Exchange (BSE) after the surfacing of fresh political crisis. Key statistics of the BSE show that delivery-based trading in July 1998 declined by 4.20 percentage points to 18.02 per cent compared with June 1998 delivery-based trading figure of 22.22 per cent.
The delivery position in A group stocks registered a fall of 4.49 percentage points to 16.83 per cent in July 1998 over the June 1998 figure.
With the Sensex falling by an average of 1000 points since April 1998, investors in B1 and B2 stocks were caught napping and had to increase delivery in July 1998. Deliveries in B1 stocks improved to 50.24 per cent in July 1998 from 42.89 per cent in June. The B2 stocks registered higher delivery-based trading of 78.19 per cent in July 1998 compared with 70.54 per cent in June 1998.
With an euphoria of the BJP led government at the centre gaining ground, net delivery-based trading showed a marginal increase. The delivery position which was hovering around 10 to 12 per cent in January, 1998 increased to 15 per cent in February 1998.
Delivery-based trading improved to 17.96 per cent in April 1998 and, with an installation of the BJP led government, it rose to 22.77 per cent. The depreciation in stock value after the budget compelled investors to take delivery in June 1998.
The delivery-based activity in A group scrips increased considerably after the announcement of general elections. From around 10.20 per cent in January 1998 (Rs 1674.44 crore), delivery-based trading doubled to 21.62 per cent in June 1998 (Rs 4840.36 crore). B1 stocks registered delivery-based trading of around 42,89 per cent (June 1998) and 59 per cent (April 1998) while B2 scrips reported delivery trading between 62.07 per cent (May 1998) and 88.45 per cent (February 1998).