9,490.10175.15
Stock Analysis, IPO, Mutual Funds, Bonds & More

Spike in delivery-based trades hints at a possible recession

Markets have lost more than half a trillion dollars in market capitalisation since Covid-19.

, ET Bureau|
Last Updated: Mar 30, 2020, 09.44 AM IST
0Comments
Getty Images
Recession
Average daily turnover of the cash segment at the NSE and BSE rose 39% and 57% in March, compared with their respective one-year average.
Delivery-based trades in India are rising, indicating that a section of the market is factoring in a major recession — and wants to eject at the first opportunity. Delivery percentage on the NSE and BSE reached 36.87% in March, higher than their long-term average, according to data compiled by ETIG.

Indian markets have lost more than half a trillion dollars in market capitalisation since the Covid-19-induced selloff began late February. Average daily turnover of the cash segment at the NSE and BSE rose 39% and 57% in March, compared with their respective one-year average.

Average daily turnover of cash segment of the NSE stood at Rs 48,975 crore in the 19 days of trading in March, a record high level. The selling pressure can be gauged from the fact that the number of trades on the NSE rose 66% to 2.02 crore in March compared with last one-year average of 1.21 crore, according to NSE data.

E1


The rising delivery in the falling market shows investors are selling their core portfolio holdings to minimise loss as ‘return’ of capital takes precedence over the return on capital.

E2


Also Read

European economies on course for unprecedented recession

European economies on course for unprecedented recessions

Gold steady, firm dollar offsets recession support

UK facing significant recession, says Rishi Sunak

EU forecasts 'recession of historic proportions' this year

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service