Delivery volume rises 37% on the bourses

Written by Markets Bureau | Mumbai, Jan 27 | Updated: Jan 28 2008, 06:47am hrs
Theres good news for the bourses. After the market mayhem, institutional fund houses have started building their new portfolios and, consequently, delivery-based transactions have shot up substantially. The delivery volume on the National Stock Exchange rose to 37% on January 24 from 30.35% on January 23 and 25.29% on January 22.

Provisional stock exchange figures show domestic institutional investors have bought equity worth Rs 8,835.07 crore since January 21.

Derivatives analyst at Edelweiss Capital Yogesh Radke said, The rise in the delivery volume is mainly because of those investors that have started accumulating stocks that were battered heavily during the recent fall. Positional buyers, mainly fund houses with a long-term view, are entering the market, with investments being made at every level. This is creating a new investment portfolio.

Earlier, a higher level of speculative activity on the bourses had resulted in a low delivery volume during the first half of January, when the market was hovering around its historic high. The average daily delivery-based volume was 23.64% in the first week of January, which further dipped to 22.27% during the second week of January. The lowest delivery percentage was reported on January 11 at 20.47%, a day before the market started sliding. But still, Radke said, The pain is still in the market. A clear picture would emerge only after the January derivatives contracts expire on January 31 and, until then, the markets are likely to remain highly volatile.