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    Equity trading volume gatherers steam in September, commodity volumes decline

    Equity trading volume gatherers steam in September, commodity volumes decline

    Equity trading volume gatherers steam in September, commodity volumes decline
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    By Ankit Gohel   IST (Updated)

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    Investors continue to remain attracted to the Indian equity market as the daily turnover value in September 2020 on the stock exchanges clocked the ninth consecutive month of healthy growth.

    Investors continue to get pulled towards the Indian equity market as the daily turnover value in September 2020 on the stock exchanges clocked the ninth consecutive month of healthy growth.
    The average daily turnover value (ADTV) on the National Stock Exchange (NSE) during September rose 49 percent to Rs 55,600 crore, when compared to last year. The number of trades grew 44 percent in this period.
    BSE’s cash ADTV during the month also rose 14.8 percent compared annually to Rs 3,180 crore. NSE’s market share stood at 95 percent in September. FY21-TD, NSE’s market share in equity cash segment stands at 94 percent versus 93 percent in FY20 and 91 percent in FY19, according to ICICI Securities.
    NSE’s total equity derivatives’ ADTV rose 42 percent, as compared to the same period last year, to Rs 21.6 lakh crore (considering notional turnover in options) in September 2020. Futures and options ADTV grew 4.2 percent and 44 percent respectively.
    Meanwhile, the daily turnover in the commodity segment declined during the month.
    The largest commodity exchange, MCX reported a 9 percent on-year fall in an ADTV at Rs 34,000 crore in September 2020. The decline in ADTV on an annual basis was driven by a decline in gold and crude volumes.
    Crude oil ADTV continues to remain lower as a higher margin requirement continued in the month. Growth in bullion segment cooled off significantly. Gold and silver ADTVOL traded declined 22 percent and 39 percent, when compared to the previous month. Natural Gas segment was the only segment which witnessed a positive growth but will also face a high base soon, ICICI Securities said in a report.
    However, on a year on year basis, gold and silver ADTV grew 9 and 63 percent, respectively. Crude ADTV declined 84 percent while base metals continued to witness a decline too except for Nickel which grew at 39 percent.
    For the quarter ended September 2020, total ADTV was up 10 percent, driven by strong bullion ADTV growth which was offset by a sharp decline in crude ADTV growth.
    Based on some cost savings initiatives taken post-COVID and 10 percent increase in ADTV YoY, the brokerage expects MCX’s revenue/EBITDA could grow by 10 percent/25 percent YoY in Q2FY21.
     
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