Nse Deliveries At 18% Of Turnover In April

The percentage of deliveries to the total turnover on the Bombay Stock Exchange (BSE) declined to 9.22 per cent in fiscal 1996-97 compared with 21.91 per cent in 1995-96.

At the National Stock Exchange (NSE), deliveries declined to 12.72 per cent of the total turnover from an average of 17.88 per cent in 1995-96.

NSE registered the highest percentage of delivery-based transactions as compared to other bourses. According to figures provided by the Securities and Exchange Board of India (Sebi), out of the total turnover on NSE, 18.01 per cent of transactions resulted in delivery in April 1997.

The BSE witnessed about 8.1 per cent of the total turnover resulting in deliveries.

 

The trend on the Delhi Stock Exchange (DSE) was dismal as only 1.65 per cent of trades resulted in delivery.

BSE has witnessed a drastic fall in deliveries from 16.33 per cent in April 1996 to about 8.1 per cent in April 1997. Figures of deliveries on Calcutta stock Exchange (CSE) were not available.

Sebi sources say that about 88-90 per cent of the traded volume is concentrated on four bourses - NSE, BSE, CSE and DSE. It was estimated that the overall average delivery percentage for the entire country could be in the range of 18-22 per cent.

Sebi is of the view that with the expansion of the BSE On Line Trading system, there may be improvement in the number of delivery-based transactions. Brokers are of the opinion that small investors from upcountry can play a pivotal role in increasing the percentage of deliveries on the bourse.

Another reason put forward by market players is the concentration of trading activity in a few select stocks.

It seems that the trading activity is shifting to B group stocks belonging to MNCs and PSUs, and sectors like tea and sugar industry. Stocks like Shipping Corporation, ITI, HMT and CMC were never touched earlier.

However, they are witnessing activity now, says UTI chief general manager B G Daga. The rise in delivery-based transactions has also been attributed to the increased foreign fund flow.

Pashupati Advani, an NSE member, told Business Standard that the bourse has been witnessing huge delivery-based transactions.

The increase in percentage of delivery-based transactions on the NSE is mainly to due to the fact that a lot of foreign funds have been flowing into the market in the past two weeks.