Share of top 10 in total NSE turnover falls

This broadening of the trading pattern has clearly been reflected in the latest NSE trading figures for February, which was despite a sharp rise in the turnover on both the cash and futures & options market on the exchange. The trends on NSE are also representative of general market trends countrywide, since NSE has terminals across the country.

Dealers said, one of the key reasons for the shift from technology stocks is the aggressive disinvestment process by the government which led to investor interest shifting to PSU stocks and also from frontline software stocks to the second rung software counters. According to NSE monthly bulletin data, the percentage share of the top ten stocks in the total NSE turnover has fallen below 55 per cent — the lowest in at least over a year.

The share of top 10 securities to the total turnover in the last one year ranged between 60 to 75 per cent. Moreover, as much as 80 per cent of the share of the top 10 came from technology stocks alone.

Dealers said, another reason for this broadening of trading is hefty buying by foreign institutional investors (FIIs) in select old economy and PSU stocks in the month of February.

Interestingly, dealers also say that the rise in the share of trades resulting in delivery has also caused this broadening. Software stocks are normally the favourite of punters and don’t result in delivery. With the share of delivery rising, the market has broadened to non-software and PSU stocks. The share of trades resulting in delivery rose in February to 16.35 per cent of the total from 11.13 per cent in January.

NSE data also shows the delivery per centage to total turnover in the month of February is the second best in the last five years. On April 2001, the per centage of delivered value to total turnover stood at 21.55 per cent.