Turnover on BSE, NSE plummets

Our Market Bureau

Mumbai, Oct 3: Trading turnover on both The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) dipped sharply on Wednesday as investors scurried to build positions and funds (both domestic and foreign) keeping themselves on the sidelines as the 48-hour deadline given by the US and its allies is about to lapse.

The total turnover clocked on both the BSE and NSE was around Rs 1,950 crore as compared to an average turnover in the range of Rs 2,500-3,000 crore seen in the month of September.

Trading turnover on the BSE was at Rs 850 crore, while that on the NSE was Rs 1,100 crore, as against an average turnover of September of Rs 1,125 crore on the BSE and Rs 1,800 crore on the NSE.

Dealers said, most foreign brokerage houses were select sellers in top-rung technology stocks. But in the absence of buyers, even a small quantity of offloading resulted in a major collapse in the share price of these stocks.

Trading volumes on the two bourses have nose-dived following the ban on carry-forward settlements. Prior to the market scam in March 2001, the average combined turnover on the BSE and the NSE was around Rs 12,000 crore.

Dealers said even the 50 basis points rate cut to 2.5 percent by the Federal Reserve on Tuesday did not lure investors as the back-to-back rate cut in the last three weeks made players jumpy about the state of US economy.

A domestic brokerage dealer said: "Despondent investors are keeping a close watch on the market and temporarily rescinded their investment decisions and are awaiting for a clearer picture to emerge with regards to the imminent war by the US and its allies against
the perpetrators of the terrorist attacks."