The decling trend on the bourses continued unabated for the last three sessions with the markets witnessing a fall of nearly 2% on Wednesday. The turnover in the cash as well as derivatives segment went up, with both BSE and NSE logging a combined turnover of Rs 1,09,930 crore (Rs 92,944 crore).
According to market experts, selloff along with a huge rise in turnover indicates a weak market. ?That?s what we have been witnessing since the last three sessions?, said a dealer with a domestic brokerage firm. The turnover figure indicates that everyone is in selling mode including retail investors, who are encashing profit, either because of uncertainty prevailing in the market or to mobilise funds for the slew of IPOs that are entering the market in the near future, he added.
The uncertainty has gripped the derivatives segment too, where individual stock futures witnessed unwinding of cash futures arbitrage positions on Wednesday. On the other hand, Nifty futures saw a mixed trend with the first half of the trading sessions witnessing heavy build-up of short positions while the second half saw short covering of those positions.
As a result, the Nifty January futures ended the day at 5,947.65, commanding a premium of 11.9 points when compared to spot Nifty?s close of 5,935.75 points.
?Though the market witnessed heavy build-up of short positions in Nifty futures in the early trading hours, short covering of those positions towards the end helped the Nifty futures end the day with a marginal premium. However, negative global factors and unstable domestic market has resulted in unwinding of cash futures arbitrage positions in the individual stock futures that had narrowed down the cost of carry in these stocks?, said Yogesh Radke, derivatives analyst at Edelweiss Securities.
