An interesting trend witnessed in the Sensex?s journey at higher levels is that along with the higher average daily turnover, the trading volume has also jumped significantly. The average trading volume, which was hovering in the range of 20 crore shares to 35 crore shares per day in the Sensex journey from 7,000 points to 15,000 points level, has jumped to 60 crore shares on the Bombay Stock Exchange (BSE) in September till now. BSE’s daily average turnover during this period ranged from Rs 3,100 crore to Rs 5,400 crore also shot up during this period to over Rs 7,600 crore.
Marketmen said the rise in average daily turnover is a very natural phenomenon as the prices have seen consistent rise, but what is more interesting is the sharp rise in the number of shares traded on the bourse and that too at such a dizzy levels.
A dealer from a domestic brokerage said that the rise in volume at this level clearly indicates that investors with long holding capacity and deep pockets are at the helm of affairs in the market.
This can be substantiated with the fact that foreign institutional investors (FIIs) have invested Rs 7,873 crore in just six trading sessions. They have already invested over $ 11.5 billion in calendar 2007 till September 25, 2007.
Manish Sonthalia, VP, Market Strategist & Portfolio Manager, Motilal Oswal Securities, said, ?In the last few trading sessions FIIs have pumped in large amount of funds in a big way, thus boosting the total traded volume in the bourses. Even though the side counters did not participate, the select few counters attracted huge amount of institutional money.?