Being
a member of the National Stock Exchange
(NSE), dealer with Over The Counter Exchange
of India (OTCEI) and M.P. Stock Exchange
we handle your trading needs, through a
network of experienced dealers across the
country, and through our comprehensive website. |
|
| The
Indian equity markets have been witnessing
a strong rally since 2003 with the benchmark
BSE Sensex crossing the 14,500 mark in February
2007 from 5,200 in September 2004 and 6,600
in January 2005 setting a new historical
high.
|
| |
| Growth of volume traded
in Secondary Market (NSE) |
| |
Units |
Year
ended 31 March |
| Capital
Market |
|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
No of Companies Listed
|
|
785 |
793 |
818 |
909 |
970 |
1,069 |
| Traded Quantity |
Million |
32,953 |
27,841 |
36,407 |
71,330 |
79,768 |
84,448 |
| Turnover |
Rs billion |
13,395 |
5132 |
6,180 |
10,995 |
11,400 |
15,696 |
| Avg Daily Turnover |
Rs billion |
54 |
21 |
25 |
43 |
45 |
63 |
Wholesale Debt
Market |
|
|
|
|
|
|
|
| Number of trades |
‘000 |
64 |
145 |
168 |
190 |
124 |
62 |
| Net Traded Volume |
Rs billion |
4286 |
9472 |
10687 |
13,161 |
8873 |
4755 |
| Avg Daily Volumes |
Rs billion |
15 |
33 |
36 |
45 |
30 |
18 |
| Derivatives |
|
|
|
|
|
|
|
| Number of contracts |
‘000 |
91 |
4197 |
16,769 |
56,887 |
77017 |
157619 |
| Turnover |
Rs billion |
23 |
1019 |
4,399 |
21,306 |
25470 |
48,242 |
| Avg Daily Turnover |
Rs Million |
110 |
4100 |
17,520 |
83,880 |
101,070 |
192,200 |
|
| |
| Source:
NSE Website. |
| |
| Growth
of volume traded in Secondary Market
(BSE) |
| |
Units |
|
Year
ended 31 March
|
|
| Capital
Market |
|
2004 |
2005 |
2006 |
| No of Companies Listed |
|
5528 |
4731 |
4781 |
| Traded Quantity |
Million |
202.80 |
237.41 |
264.01 |
| Turnover * |
Rs billion |
5,026.18 |
5187.16 |
8160.74 |
| Avg Daily Turnover * |
Rs billion |
237.56 |
246.16 |
389.79 |
|
| |
*Including
Equity, Debt and Government Securities.
Source: BSE Website |
| ^Top |
Foreign
Participation: FII investments in India
have increased significantly over the last
few years. FII registrations with SEBI have
increased from 482 in FY 2001 to 1,048 as
on Jan 11, 2006. FII inflows have also risen
considerably in recent years as depicted
in the table below:
Net FII inflow in India : |
| |
| Net
FII in India |
Net FII in India
Year ended March 31
|
No.
of FIIs |
(US
$ Million) |
| 2006 |
882 |
9,332 |
| 2005 |
685 |
10,152 |
| 2004 |
540 |
9,950 |
| 2003 |
502 |
562 |
| 2002 |
490 |
1,849 |
| 2001 |
527 |
2,159 |
|
|
Source:
RBI
Equity
Brokerage
As the Indian capital markets continue
to evolve, they are undergoing rapid consolidation
driven by increased trading volumes, increased
regulation, customer sophistication, availability
of better technology and increased back-office
requirements. As a result, significant
changes have been introduced to strengthen
risk management systems. Changes in the
regulatory framework and settlement mechanics
have resulted in smaller operating players
losing market share, leading to consolidation
in the industry. The market share of the
top five brokers on the NSE has increased
from 12% in FY-04 to about 16% in FY-
06. Similarly the market share of the
top ten brokers on the NSE has grown from
approximately 17% in FY 04 to 23% in FY-06.
These figures indicate a long-term consolidation
process in a highly fragmented securities
brokerage industry, with hundreds of smaller
players exiting the market and the larger
brokers gaining market shares. The following
table shows the volume of trades on the
NSE and the percentage undertaken by the
top brokers:
|
| |
| Volume
of trades on the NSE and the percentage Undertaken
by the top brokers: |
|
| |
| Year Ended March
31 |
5 |
10 |
100 |
| Feb-08 |
14 |
25 |
76 |
| Jan-08 |
15 |
27 |
76 |
| Dec-07 |
15 |
26 |
74 |
| Nov-07 |
15 |
26 |
75 |
| Oct-07 |
15 |
26 |
76 |
| Sep-07 |
15 |
26 |
73 |
| Aug-07 |
15 |
26 |
73 |
| Jul-07 |
15 |
26 |
74 |
| Jun-07 |
15 |
26 |
73 |
| May-07 |
15 |
26 |
73 |
| Apr-07 |
16 |
26 |
74 |
| 2006-2007 |
15 |
24 |
71 |
| 2005-2006 |
15 |
23 |
68 |
| 2004-2005 |
14 |
20 |
65 |
| 2003-2004 |
12 |
17 |
61 |
| 2002-2003 |
10 |
16 |
59 |
|
| |
| ^Top |
*
Market Capitalisation
in CM segment
Source: NSE Website. |
| |
Market
consolidation is even more pronounced in
the on-line trading category where the top
five brokers control a very significant
share in the market. The rapid growth in
on-line trading volumes can be attributed
to the growing sophistication of retail
investors, availability of reliable internet
connectivity and the sophistication of the
internet trading products. The following
table shows average on-line trading volume
for the periods indicated and the percentage
of total trading volume. |
| |
Average
on-line trading volume for the periods indicated
and the percentage of total trading volume. |
| |
| Year ended March
31 |
Enabled
Members
|
Registered
Clients
|
Trading Volume
( Rs. Billion)
|
% of total Trading
volume |
| 2001 |
61 |
123,578 |
72.88 |
0.54 |
| 2002 |
82 |
231,899 |
81.39 |
1.59 |
| 2003 |
80 |
346,420 |
153.61 |
2.48 |
| 2004 |
70 |
463,560 |
379.45 |
3.45 |
| 2005 |
78 |
849,696 |
810.34 |
7.11 |
| 2006 |
142 |
1443,291 |
1834.29 |
11.68 |
|
Source: NSE Factbook 2006. |
| ^Top |