Mumbai: Stock markets may have gone through a number of bouts of sharp selling over the past year, but it has not deterred investors from thronging the Dalal Street, which is set to register a record annual turnover when the current fiscal draws to a close next week.
While the value of total business conducted at the Bombay Stock Exchange (BSE) has crossed $200 billion milestone, the National Stock Exchange (NSE) is set to record an annual turnover of well above $400 billion for the first time in its history in FY07.
Transactions worth about Rs9,40,000 crore have already been conducted at the BSE in the current fiscal, and it is set to rise to about Rs9,55,000 crore after another four days of trading left in the year with an average daily turnover of about Rs3,700 crore this month.
The annual turnover has nearly doubled from close to $110 billion in FY04, although the number of listed scrips has seen a rise of only 5% in the same period.
The annual turnover has also recorded a significant growth of about 10% over the previous fiscal, notwithstanding at least three bouts of huge selling on the bourses — the mayhem of May-June 2006 and two another bearish phases in December last year and February this year — when the benchmark index Sensex plunged by 10% to 30%.
The country’s another leading stock exchange NSE is also set for a new record in terms of annual turnover, which is estimated to rise to about Rs19,50,000 crore this financial year.
NSE has already conducted business worth close to Rs19,13,000 crore in the current fiscal and the last four days could add another Rs32,000 crore worth transactions based on an average turnover of Rs8,000 crore.
In fact, NSE has witnessed higher growth rates than BSE over the past few years — a jump of about 24% over the previous fiscal and over 75% since FY04, when its annual turnover was just above Rs1,000,000 crore.
The combined annual turnover of the country’s two leading bourses is more than six times of the combined turnover of India’s five biggest companies — Indian Oil, Reliance Industries, Bharat Petroleum, Hindustan Petroleum and ONGC.
The sharp rise in the turnover of bourses has been accompanied with significant growth in their market capitalisations as well.
The combined market cap of all the companies listed on the two exchanges has nearly tripled from about Rs12,00,000 crore to close to Rs34,00,000 crore.
The number of trades conducted on the BSE has also surged nearly 60% from about 20 crore to close to over 32 crore this fiscal.