Delivery volumes surge on FPI buying, clear election mandate
In the past three trading sessions, an average of ₹18,000 crore worth of 50 stocks comprising the Nifty index was delivered on both exchanges, marking a 66% increase compared to the daily average of ₹10,884 crore in November and of ₹11,265 crore in October.
Delivery volume is the total number of stocks out of the total traded in a day that is delivered to the buyer.
Delivery-based volumes in stocks are widely watched as they show whether the buying interest is coming from investors or traders. When delivery volumes spike in a share, it's a sign of interest among investors.
Similarly, if delivery volumes are low, it shows traders, who want to make a quick buck, are active.
For instance, HDFC Bank shares saw a daily average of 70% delivery-based buying, amounting to ₹2,254 crore in December, which is nearly double the previous month's average of ₹1,267 crore. Reliance Industries saw average delivery volumes of ₹2,128 crore in December compared to ₹830 crore in November or ₹781 crore in October.
Foreign portfolio investors have been consistent buyers of Indian equities for the past eight days, totalling ₹28,425 crore.
«With the recent state election results, sentiment is indicating a higher likelihood of the current government having a stronger mandate,» said Varun Saboo, head of institutional equities at Anand Rathi.
