NSE cash market ADTV dips to six month low on bearish market sentiments
Both the benchmark indices Nifty and Sensex have dipped 6% each due to global turmoil; this is the second consecutive month of negative closing for the key indices
The average daily trading volume (ADTV) in the cash market on the National Stock Exchange (NSE) fell to a six-month low of ₹1.15 lakh crore in September, down 4% from the ₹1.20 lakh crore recorded in August. This decline was attributed to bearish sentiment, driven by consistent selling by foreign investors. Despite this, turnover on the Bombay Stock Exchange (BSE) increased by 5% to ₹11,081 crore, up from ₹10,590 crore in August.
Both the Nifty and Sensex indices declined by 6% each, reflecting global market turmoil. This is the second consecutive month of negative closing for these key indices. Foreign Portfolio Investors (FPIs) withdrew $2.7 billion in September, bringing the total net outflow from India to $26.8 billion in 2026. The increased foreign investment in large cap stocks further pressured the key indices.
A rise in US bond yields forced many global investors to shift their investments from Indian equities to US bond markets. The growth prospects of the Indian economy were also threatened by the steady increase in crude oil prices. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the market has been steadily declining over the past two months due to high crude prices and US bond yields, which have made intra-day trading riskier under the new Continuous Auction Settlement (CAS) system.
Sachin Gupta, VP of Research at Choice Broking, stated that retail investors are now seeking clarity before investing in uncertain market conditions, rather than making aggressive trades. Investors are also increasingly opting for mutual funds and Systematic Investment Plans (SIPs) to participate in the equity market without selecting individual stocks.
Vishal Trehan, Head of India Sales and COO at Aikyam Capital Group, mentioned that the 6% drop in the Nifty has led investors to moderate their trading activity, but it also presents opportunities for evolving investment preferences and alternative equity participation avenues.
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