The average daily turnover on have touched a new high so far this year, pointing to the return of retail investors to equity markets and soaring investors confidence on .
The ADT on , the country’s largest stock exchange, has increased 15 per cent last month to hit a new high so far this year at ₹1.11 lakh crore against ₹96,167 crore logged in January. It has jumped 11 per cent month-on-month.
Similarly, in the same period ADTV on the oldest stock exchange was up 32 per cent to ₹7,536 crore against ₹5,706 crore in January.
Retail investors have been waiting in the wings to enter the equity market after concern were raised over the market valuations. The sudden fall in equity market since last September aggravated investors fear further.
The sharp market meltdown was triggered by pull out of investments by foreign portfolio investors on uncertainty over revival of corporate earnings amid global economic turbulence and geopolitical issues.
has delivered a 3 per cent year-on-year growth in profit in FY’25. The bellwether index had reported a single-digit profit growth for the fourth successive quarter since the pandemic.
The market capitalisation on NSE has jumped 5 per cent last month to ₹4.42 lakh crore against ₹4.21 lakh crore registered in January.
However, an attractive sop delivered by in and subsequent leading to expectations of lower borrowing rates has boosted investors sentiments. The central bank also cut the cash reserve ratio of banks by 100 basis points to 3 per cent, releasing ₹2.5 lakh crore of lendable resources to the banking system.
rate cut decision is expected to stimulate borrowing and investment, leading to a higher growth rate. The RBI policy panel retained growth estimate at 6.5 per cent but projected a lower inflation of 3.7 per cent in the current fiscal.
The equity markets have started reviving since March with strong inflows through mutual funds and subsequently FPIs returning to India despite growing uncertainty.
Trivesh D, COO, Tradejini said retail investors are slowly making their way back after months of sitting out but they are being more choosy both in the primary and second market and not gripped by FOMO (fear of missing out) syndrome this time around.
FIIs also stepped in decisively, investing ₹11,773 crore in May against ₹2,735 crore in April. This rebound is not being driven by panic or hype, it is a cautious re-entry and investors will benefit if the corporate earnings round, he added.