Trading activity picks up pace in May amid buoyancy in the markets
Trading activity has picked up pace amid buoyancy in the markets. The average daily trading turnover for the cash segment in May stood at Rs 63,774 crore — the highest since September 2022. Besides, it reported a month-on-month (MoM) increase of 16.5 per cent — the most since August.
The average daily trading turnover for the futures and options (F&O) segment (for the NSE and the BSE combined) rose to a new high of Rs 252 trillion from Rs 242 trillion in April.
Trading volumes tend to have a strong correlation to the stock price performance and the latest volumes are reflective of bullishness in the market, say industry players. The Nifty Midcap index has already hit a new high, while the benchmark Sensex and the Nifty50 index are hovering close to their lifetime highs registered on December 1.
The Sensex and the Nifty rose more than 2 per cent each in May, extending their three-month gains to about 5 per cent.
The broader market performed even better: The Nifty Midcap 100 index rose 6.2 per cent, while the Nifty Smallcap 100 index added 5.1 per cent — stretching their three-month gains to 10 per cent and 7 per cent, respectively.
