Jan 6, 2011

How deep and wide Indian Stock Markets are? SHOCKING FIGURES FROM NSE



In a recent interview with CNBC renowned fund manager Samir Arora expressed his disappointment of Indian investors in equity markets by saying “Indian investors are world’s biggest losers”.
He adds that in a year when FII have poured in USD29 bln on the back of fundamental growth and resilience of Indian economy after 2008 global credit crisis; while the domestic investor’s participation have remained below average.
He also added that since Jan 2000, Foreign Investors have put a USD91 bln in Indian markets. While the mutual fund investments has been a meager at only USD 2 bln during this same 11 years span.
He goes on to contend that real public only owns 1% equity in India. Also citing a morgan Stanley report only 3% of average indian’s total assets are in equities.

DAILY VOLUMES:
BSE CASH SEGMENT- between 2000 to 5000 cr. (all mainly cash segment)
NSE CASH PLUS DERIVATIVE SEGMENT- around 1,30,000 cr.


NSE FIGURES PRESENTED IN PARLIAMENT GIVING DATA OF TRADING AND INVESTING ACTIVITY ALSO UNCOVERED THE SHALLOWNESS OF INDIAN MARKETS AND LACK OF PARTICIPATION BY AVERAGE INDIAN:
The data were presented by Mr.Meena, Minister of State for Finance, on 10 Aug, 2010 in Parliament in response to questions asked by two MPs.
The analysis of data is shocking and startling. You will find out in reality how shallo, narrow, concentrated our stock markets are.