Stock mkt biz dips 42% on ‘Bandh’ day

The cumulative turnover at the country’s top two stock exchanges NSE and BSE in equity and derivatives segments fell down to near Rs 50,000 crore,down from the daily average of close to Rs 85,000 crore in the current month.

The equity trading volumes of BSE was the worst hit with turnover falling by over 52 per cent to Rs 2,857 crore.

NSE’s equity turnover fell by nearly 35 per cent to Rs 7,765 crore.

On the other hand,NSE’s futures and options turnover also fell sharply to Rs 35,803 crore,nearly 44 per cent below the turnover in the last trading session.

“There has been a sharp decline in trading volumes on both the national bourses because of the nationwide bandh,” Geojit BNP Paribas Financial Services Research Head Alex Mathews said.

“The market was very volatile after a weak opening but could not sustain its comeback to positive terrain at higher level because of poor volumes,” Mathews added.

Lower business volumes was also reflected in the narrow range movement of stock market indices,nearly all of whom closed almost flat today.

The 30-share index Sensex remained range bound by closing marginally down 0.11 per cent,or 19.51 points at 17,441.44 on the BSE.

“The impact of the Bharat Bandh by the Opposition parties was clearly visible on Dalal Street as volumes were sluggish,which indicated lack of participation by investors and traders in market,” IIFL Vice President (Research) Amar Ambani said.

“The turnover was nearly half of what we normally do,” he added.

NDA and Left parties had called a one-day nationwide bandh against fuel price hike and transport services were among the worst hit in the midst of processions across the country.