Day 1 sees less trading in spite of more hours
No positive results could be gained by the stock exchanges' controversial move to advance market opening from 9.55 am to 9 am, on the first day of trading. The basic aim behind this move was to garner more trading transactions.
The market opening was preponed by about an hour from January 4 by the India's leading exchanges, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This decision was highly opposed by brokers as they felt there were issues on infrastructure and costs. Furthermore, the move to introduce more hours will actually give way to more stress for employees in the investment fraternity without any increase in volumes.
It was clearly visible by data on day one of more trading hours that trading volumes were at their lowest in the prior few months.
As on Monday, the total trading turnover totaled a little above Rs 64,000 crore; including both BSE and NSE.
The past few weeks have seen the average turnover for NSE standing close to Rs 80,000 crore. So overall, even if the fact that FIIs may have still not returned from the holiday season is eliminated, volumes still came across as a disappointment.
VK Sharma of HDFC Securities, "Our volumes, minus the treasury stock sale by Reliance Industries, were nothing to write home about." He referred to the share sale by the company when it sold 258 lakh stocks to raise funds.