OUTLOOK MONEY Positive Trend Continues In Equity Trading, Bond Yields: SEBI

Sebi data shows a continuing positive trend in equity trading and bond yields in April 2023. Despite a drop in monthly cash turnover, the equity cash segment’s average daily turnover rose by 4 percent.

Outlook Money

Updated on: 25 August 2023 6:38 pm

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The Securities and Exchange Board of India’s (Sebi) monthly bulletin for April 2023 shows a continued positive trend in equity trading and bond yields. All indices were trading in the green except Nifty IT. Although the overall gross turnover in the equity cash segment declined by 15.8 percent, the equity cash segment’s average daily turnover rose by 4 percent compared to the previous month. The member traders accounted for 37.5 per cent of the trading.

Among the cities contributing to the cash segment turnover in NSE and BSE, Mumbai emerged the leader with a share of 35.9 per cent, followed by Ahmedabad at 25.8 per cent. Delhi and Kolkata lagged significantly, contributing merely 1.1 per cent and 1.9 per cent, respectively.

The fall in cash turnover was not due to a rise in options and futures trading. The notional turnover of the Bombay Stock Exchange’s (BSE) equity derivatives segment fell to Rs. 1.13 crore from Rs. 1.15 lakh crore in March 2023. Similarly, the National Stock Exchange’s (NSE) monthly notional turnover in the equity derivatives segment declined by 16.9 per cent to Rs. 4,117 lakh crore in April 2023.

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Performance Of Sectoral Indices

In April 2023, all indices saw positive returns, except for Nifty IT. Nifty Realty gave the highest return of 14.9 per cent, followed by Nifty PSU at 12.1 per cent and BSE Auto at 7.4 per cent. Nifty IT reported the lowest returns at -3.5 percent, and it was also amongst the most volatile indices.

India Vis-A-Vis Global Markets

All indices of BRICS countries, excluding Russia, demonstrated positive returns. The Nifty 50 Index witnessed the highest increase of 4.1 per cent, closely followed by BSE Sensex. Hong Kong’s HANG SENG saw the highest annualised volatility at 29.1 per cent, followed by France’s CAC 50 at 22.5 percent, and Germany’s DAX at 22.3 percent.

In the bond market, considering the 10-year government bond yields across BRICS nations, Brazil recorded the highest yield at 12.5 percent, while China showcased the lowest yield at 2.8 percent. In India, the 10-year government bond yield remained moderate at 7.1 percent at the end of April 2023. Among select developed countries, the United States maintained a consistent 10-year government bond yield of 3.5 percent during the same period.