Buoyed by the rising bulk deals and improved investor participation, the average cash market turnover on the BSE hit a 30-month high of Rs 6,878 crore in August. However, Asia's oldest stock exchange accounts for less than 10 percent of the nation’s total equity cash market turnover. With over 90 percent market share, NSE dominates both equity and derivatives markets in India.
While BSE clocked nearly 50 percent growth in August cash turnover, the largest exchange NSE saw its average monthly turnover rising by 5.3 percent (m-o-m) to Rs 76,568 crore. According to data from BSE and NSE, the combined turnover on bourses for the month of August crossed Rs 83,000 core for the first time since October 2021.
Even though the higher cash market turnover on the back of rising stock prices is an often-seen phenomenon, this time around it was boosted by large ticket-size trades.
The Indian market has seen record bulk deals in 2023 with unprecedented selling from promoters, Private Equity and Strategic Investors. All three have together sold shares worth over $10 billion so far this year. The massive selling in the secondary market is helping offset a slump in IPOs, which has halved to $2.6 billion so far this year.
Interestingly, the average turnover for the eight months to August has already surpassed last year’s tally of Rs 61,459 crore. The average turnover for the first eight months of 2023 stood at Rs 63138 crore.
Among the largest deals executed on BSE in August include promoter group selling a stake in Adani Power and Adani Green Energy, and Chinese fintech giant Antfin offloading 3.6 percent stake in Paytm. Similarly, Quinag Acquisition and Internet Fund III Pte sold over Rs 1,100 crore worth of shares in Manappuram and Zomato, respectively.
The rise in investor participation amidst modest movements in benchmarks has resulted in outperformance in the broader market. The BSE SmallCap and Midcap have rallied 28.4 percent and 23.3 percent, respectively so far in 2023. That compares with 6.6 percent gains clocked by the benchmark Sensex during the same period.
Market participants expect the current positive trend in the broader market to continue as foreign investors are diversifying into India for stability amid global intricacies.
| Avg Cash Turnover on BSE (Rs Cr) | |
| Aug-23 | 6878 |
| Jul-23 | 4650 |
| Jun-23 | 5157 |
| May-23 | 3709 |
| Apr-23 | 3035 |
| Mar-23 | 3669 |
| Feb-23 | 3553 |
| Jan-23 | 3243 |
| Dec-22 | 3945 |
| Nov-22 | 4366 |
| Oct-22 | 4424 |
| Sep-22 | 5370 |
| Aug-22 | 5640 |
| Jul-22 | 3223 |
| Jun-22 | 2848 |
| May-22 | 4192 |
| Apr-22 | 5307 |
| Mar-22 | 5070 |
| Feb-22 | 4812 |
| Jan-22 | 5365 |
| Dec-21 | 4256 |
| Nov-21 | 4853 |
| Oct-21 | 6686 |
| Sep-21 | 6142 |
| Aug-21 | 5199 |
| Jul-21 | 5525 |
| Jun-21 | 6816 |
| May-21 | 5625 |
| Apr-21 | 4362 |
| Mar-21 | 5011 |
| Feb-21 | 7248 |
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