Cash volumes fall in May as market volatility keeps away investors

Regulatory changes and curbs on intraday leverage hurt volumes and push change to the derivative options segment.

Cash volumes dropped 16 per cent month-on-month in May as a sharp spike in volatility weighed on investor participation. The combined average daily turnover (ADTV) in the equity cash segment of the NSE and BSE stood at Rs 61,710 crore, compared with Rs 73,245 crore in April. The ADTV for May was the lowest since December.

Experts said wild swings in stock prices seen last month deterred investors from mounting aggressive bets in the market.

“Volumes increase in a bull market, and when markets become volatile, the participation of retail investors reduces. Because we had most of the stocks coming down from