Despite buoyancy in market, stock trading activity declines in October

Cash market turnover fell almost 20% in October as rally take traders by surprise

Stock trading volumes dropped for the first time in four months in October even as the secondary market continued to be buoyant. The average daily trading volume (ADTV) for the cash segment fell to Rs 54,532 crore (NSE and BSE combined), a fall of nearly 20 per cent month-on-month (MoM). The ADTV for the futures and options (F&O) segment (both NSE and BSE combined) stood at Rs 147.4 trillion (notional turnover), declining 4 per cent MoM.

Typically, trading volumes tend to jump whenever the markets rally. However, this was not the case in October. Experts say the latest rally has