NSE still leader in capital market segment

Our Markets Bureau

Mumbai, June 3: The National Stock Exchange (NSE) continues to be the market leader in the capital market (CM) segment accounting for about 45 per cent of the total turnover of all the stock exchanges in the country in 2000-2001, according to the Factbook 2001 recently published by the exchange.

The turnover of the CM segment increased rapidly from Rs 839,052 crore in 1999-2000 to Rs 1,339,510 crore during 2000-01, a growth of 60 per cent. The average daily turnover also increased by leaps and bounds from Rs 3,303 crore to Rs 5,337 crore during the same period registering a growth of 62 per cent.

The CM segment has registered a record turnover of Rs 10,367 crore on February 28, 2001 with about 14 lakh trades involving 42 crore securities. The demat turnover in the CM segment increased from Rs 351 crore during 1997-98 to Rs 12,64,337 crore during 2000-01, accounting for about 95 per cent of total turnover on the CM segment in value terms. The segment reported a turnover of Rs 5,394 crore in securities compulsorily traded under rolling settlement.

The total market capitalisation of securities available for trading on the CM segment increased from Rs 1,020,426 crore at end March 2000 to Rs 6,57,847 crore at end March 2001. The S&P CNX Nifty accounted for 46 per cent of the market capitalisation at the end of March 2001.

The liquidity in the CM segment as measured by the turnover ratio has witnessed a steady increase and reached nearly 20 per cent during September 2000, when about 97 per cent of the securities available for trading is being traded every day and 95 per cent every month. About 80 per cent of the securities were traded for the at least 100 days during 2000-01. It is also observed that the top 5 and 100 securities account for about 52 per cent and 98 per cent of total turnover in the CM segment in 2000-01. The 50 most active stocks during 2000-01 accounted for 95 per cent of turnover. Broker-wise distribution of turnover indicates increasing diffusion of trades among a large number of trading members over the years.