Cash market turnover hits eight-month high in May

Uptick underpinned by rally in the broader markets for a third month

- SUNDAR SETHURAMAN

Cash volumes in May surged to an eight-month high, driven by a broad-based recovery in equity markets.

The average daily trading volumes for the cash segment, combining the National Stock Exchange (NSE) and BSE, increased 11 per cent from the previous month, reaching ₹1.18 trillion.

This is the highest level since September last year, when it peaked at ₹1.3 trillion, but still 28 per cent below the peak of ₹1.65 trillion in June 2024.

According to experts, the surge has been driven by two key factors: A rise in underlying stock values and improved investor sentiment.

In contrast, the average daily trading volumes (ADTV) for futures and options (F&O) in May declined 5 per cent to ₹348.2 trillion (notional turnover), down from the ₹368.2 trillion in April.