Confidence, delivered: Domestic markets sustain 40%+ trade triumph

Investors send a clear message as confidence is shipped with each trade

Delivery-based trades in the domestic markets have maintained levels above 40 per cent for a fourth consecutive month. Experts view this as a sign of investor confidence in the markets, despite valuations trading above historical levels.

Normally, delivery-based trades decrease when traders perceive stocks as vulnerable, shifting focus towards intraday trading.

However, this doesn’t seem to be the case presently.

This month, the average delivery-based trades on the National Stock Exchange and BSE have held at 40 per cent, slightly below the 12-month average of 41 per cent.

On the BSE, the average delivery-based trades are even higher at 58 per cent compared to the 12-month average of 54 per cent.

The BSE exhibits a higher delivery percentage due to the mandatory delivery requirement for several stocks traded on its platform.

Market observers indicate that traders generally anticipate market volatility but believe the overall trajectory will remain upward.

A robust growth outlook and strong macro and domestic liquidity support are considered factors contributing to the resilience of the domestic markets.

Analysts suggest that while the macro-level delivery-based trading data presents a positive picture, investors should also examine delivery-based trading data for individual stocks to gain a bottom-up perspective.