Trading waters turn rough: Mkt swells drag cash and F&O volumes downstream

Not the time to raise the sail as investors batten down the hatches

Trading turnover in both the cash and derivatives segments fell in October, a sign that investors are turning cautious. This dip coincided with the benchmark indices recording their worst monthly decline since March 2020.

 

The average daily trading volume (ADTV) for the cash segment (National Stock Exchange/NSE and BSE combined) dropped by 12.4 per cent to Rs 1.14 trillion, the lowest level since April. The ADTV for the futures and options segment decreased by 3.5 per cent to Rs 518 trillion. After peaking at Rs 1.65 trillion in June, the cash segment ADTV has fallen by over 30 per cent.