Rs4160,000,000,000--NSE VOLUME !!!

Rs4160,000,000,000: Algos steer Street volume record

Published: Friday, Dec 28, 2012, 2:39 IST | Updated: Friday, Dec 28, 2012, 18:10 IST 
By Nitin Shrivastava & Sachin P Mampatta | Place: Mumbai | Agency: DNA

Total trading volumes on the stock market are moving faster than you think. So much so that on Thursday, it hit off its highest ever level, with securities worth Rs4.16 lakh crore changing hands during the day.This is the second month in a row that volumes scaled a new peak on the date of expiry, coming in at Rs3.91 lakh crore on the last Thursday of November when derivative contracts for the month expire.Experts attribute the trend of rising daily volumes to a shift in derivatives trading towards options and a higher usage of high frequency trading (HFT).Yogesh Radke, head of quantitative research at Edelweiss Securities, has specifically pointed to the higher proportion of derivatives to the overall volumes. “The option volumes now constitute 70-75% of derivative volumes and with evolution in technology like high frequency trading, colocation and algorithmic trading for intra-day trades, the daily turnover has seen a surge which otherwise would not have been possible by manual trading,” said Radke.Siddarth Bhamre, head (derivatives) at Angel Broking, puts it down to an active BSE derivative segment because of which the daily turnover has gone up considerably. “The BSE derivatives segment where most of the volumes come from market making has helped the overall market volumes. Otherwise, FIIs this month were not at all active in the futures and options (F&O) market even as they continued buying in the cash market. The rollovers have been good with most people carrying forward their positions to January,” he said.Derivative volumes surged to Rs4 lakh crore for the first time on record even as total cash market turnover stood at Rs16,328.63 crore, or less than a third of their 2009 high of Rs51,933 crore. BSE derivative volumes accounted for Rs1.72 lakh crore of the traded value, also a record for the exchange’s derivatives segment. Its cash segment had volumes of Rs2,519.61 crore. The National Stock Exchange had total volumes of Rs2.41 lakh crore of which only Rs13,809.02 crore came from the cash segment.The best part is the sentiment remains positive for the next month. “The market-wide rollover at 75% has been in line with previous months’ average, with banking and metal stocks reporting decent rollovers. The roll cost was high indicating positive sentiment going into January series. However, Nifty rollover was slightly below average,” said Radke.“The upcoming January series should be good with foreign institutional investors (FIIs) coming back in the first week of January. Though a lot of hue and cry is being raised over the fiscal cliff, the FIIs don’t seem to be concerned about the same much as they continue pumping money into global equity markets. Also in India, the volatility index (VIX) index continues to remain at around 14% levels which does not indicate too much uncertainty,” said 

http://www.dnaindia.com/money/report_rs4160000000000-algos-steer-street-volume-record_1782465