Flurry of block deals lifts cash trading market volumes from two-year lows

A flurry of block deals has helped cash trading volume on Indian bourses recover from their two-year lows. The 30-day average cash market turnover had dropped to $5.9 billionmid-July — the lowest in at least two years.

With promoters and private equity (PE) shareholders offloading shares, the 30-day average turnover has improved to $7.3 billion — a near-three-month high.

The NSE Nifty50 Index jumped about 17 per cent from a mid-June low through the end of last week, although equity prices have fallen in India and globally this week.

The rebound coincided with optimism that the US Federal Reserve may ease up on its pace of monetary tightening, prompting a recovery in stocks the world over.

The recent rally has fuelled a $2-billion flurry of secondary offerings this month, with PE giants from Blackstone Inc. to KKR & Co. Inc. selling down their holdings or heading for the exit.