Volumes dip as to sell

Trading volumes in both equity and derivatives segments saw a further decline in February compared to 2024 as intense swings in equity and regulatory restrictions disappointed retail traders from the market.

The average daily trading volume (ADTV) in the equity segment of the BSE and NSE fell 13% in February 13% -15 month low-back month. It is reduced to 44% compared to the average turnover in 2024. In derivatives, turnover in options – the most popular tool among retail traders – declined 2% from the previous month and below the average volume of 2024, below 48%. Options turnover in February was Rs. 187 lakh crore was at its low level in 27 months.

In November, the measures represented by Capital Market Regulator Sebi also reduced the volume to prevent excessive speculation in futures and options and control the participation of increasing retail investors. Futures turnover on the NSE has also gone up 1.61 lakh crore, which is 15% below the average of 2024.

Eventually the markets are improving, and the broking industry has seen a huge decline in the number of traders and volumes, said Nithin Kamth, India’s leading broking pay FIRM, in a post on the XX. “Around brokers, there is a decrease in activity by more than 30%.

Connected with a true market circular, we are watching Digroth in the business for the first time since we started 15 years ago, “Kamath said. “By the way, if this continues, the government will not make Rs 40,000 crore from STT in FY 25-26, which is at least 50% with an estimate of at least 50% crore.”

In the last four years, until September 2024, equity derivatives – especially options – explosive growth and the introduction of a weekly agreement run by the bull market. The rise attracted the wave of retailers in hopes of rapid gain. However, the rapid increase in speculative activity raised concerns for both the government and the SEBI, leading to strict rules for the purpose of bringing more stability in the market.