Average daily turnover in NSE's equity cash segment sees massive fall in March but gains 98% in FY24

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₹1.02 lakh crore. This decline marked the most significant drop since October 2023. The average daily turnover in the equity cash segment was ₹1.18 lakh crore.

Before this, the average daily turnover in October was ₹67,175 crore, down over 20 percent from ₹84,381 crore in September. After the decline in October, it rose over 9 percent MoM in November at ₹73,440 crore, then 41.5 percent MoM in December to cross ₹1 lakh crore for the first time even in FY24. The first 2 months of the calendar year 2024 also saw strong surge.

In January 2024, the average daily turnover in the equity cash segment was at ₹1.15 lakh crore, up over 10 percent from December 2023. Meanwhile, in February 2024, it further rose to ₹1.18 lakh crore, up almost 3 percent MoM. Before massively declining in October, the average daily turnover witnessed a steady rise between April and September.

Overall, Indian benchmark Nifty delivered robust returns, rising around 25 percent in FY24. While most experts believe that the new financial year will also witness similar returns, they also advise caution in the near term on the back of high valuations as well as the upcoming general elections. Meanwhile, in March, while the benchmark Nifty experienced a 1.6 percent increase, the mid and small-cap indices witnessed declines of 4.55 percent and 0.6 percent, respectively.

Analysts attributed this trend to concerns raised by the Securities and Exchange Board of India regarding the valuations of mid and small-cap stocks, which dampened investor sentiment and led to reduced participation in these segments. This in turn also led to a decline in average daily turnover in the previous month. Looking ahead, experts anticipate an improvement in investor participation.