Date: October 03, 2008
Ref. No. MPML/PMS/174/2008
Indian Stock Exchange Score Over Global Peers In Turnover
"A comparative analysis of the turnover on some of the major exchanges in the world reveals that Indian stock exchanges have outperformed their peers during the first eight months of this year, compared to the corresponding period last year. "
"As per the World Federation of Exchanges, till August 31, 2008, the total value of share trading on NSE and BSE have witnessed an increase of 48% and 33%, respectively. "
"This also explains the interest among foreign bourses in the stock exchanges in India. NYSE has picked up a stake in NSE and MCX whereas Deutsche Boerse and Singapore Exchange hold similar stakes in BSE."
"Indian Stock market has been out performing the Global stock exchanges. Indian economy is also safer with tightening Monitory policy. India is safe as compare to its global pears."
EQUITY markets around the globe are in a downtrend. But a comparative analysis of the turnover on some of the major exchanges in the world reveals that Indian stock exchanges have outperformed their peers during the first eight months of this year, compared to the corresponding period last year.
Exchange/Country NSE BSE Australian SE Hong Kong Exchange Taiwan SE corp. Deutsche borse BME Spanish exchange Tokyo Se Swiss Exchange Euronext Korea Exchange Singapore Exchange Borsa Italiana Shanghai SE London SE Shenzen SE For instance, stock exchanges in Hong Kong, Singapore, Thailand, Tokyo, Shanghai, London, Australia, Euronext, Germany, Spain and Italy, among others, have seen a decline in the total value of shares traded on the respective bourses. But it has been exactly the opposite in the case of traded turnover on both the Indian stock exchanges, which has grown by roughly 40% on an average.
Brokers attribute this trend to the unprecedented growth in investor base; be it institutional, retail or proprietary, increase in the number of stocks, and inclusion of more stocks in the futures and options (F&O) segment of NSE. All this at a time, when stock exchanges in developed markets have not been witnessing much growth. This is interesting, because India is generally perceived to be a market lacking depth in terms of liquidity.
As per the World Federation of Exchanges, till August 31, 2008, the total value of share trading on NSE and BSE have witnessed an increase of 48% and 33%, respectively. At the same time, traded turnover on Chinese stock exchanges - Shenzhen SE and Shanghai SE - have seen fall of 31% and 35%, respectively.
Other Asian stock exchanges like Singapore Exchange, Korea Exchange, Tokyo SE among others, have also witnessed a decline in traded turnover. Apart from this, European Exchanges like London SE, Borsa Italiana, BME Spanish Exchange and Deutsche Borse have not been able to escape this downtrend in the value of shares traded.
Perhaps, this also explains the interest among foreign bourses in the stock exchanges in India. NYSE has picked up a stake in NSE and MCX whereas Deutsche Boerse and Singapore Exchange hold similar stakes in BSE. Similarly, currency futures trading is in its nascent stage, and has the potential for exponential growth.
Despite the rise in share trading value over the past few months, Indian stock exchanges have not been among the star performers if share turnover velocity is taken as the yardstick. Share velocity, which is an indicator of the breadth of activity and liquidity in the market, is poor in case of India compared with other (both developed and emerging) markets.
In stock markets across the globe, share turnover velocity has gone up in many exchanges whereas in India, the trend has been the reverse due to factors like concentration of trading in few stocks and high-promoter holding in companies to this trend.
Indian Stock market has been out performing the Global stock exchanges. Indian economy is also safer with tightening Monitory policy. India is safe as compare to its global pears. Sensex is currently trading below 13000 levels, Good time to shape your portfolio. Stay with the market and earn Higher returns.(Source: - Economics Times)