New Delhi, May 27 (H.S.): The recent rise in the domestic stock market has led to a significant increase in daily average turnover in the cash market, now reaching Rs 1.16 lakh crore, the highest in eight months. This 8% monthly increase reflects growing investor confidence and market strength. The current turnover is the highest since September 2024, marking the third consecutive month of growth in cash market activity since a downturn began in October 2024, which had previously driven turnover to a 15-month low by February 2025. Following increased buying in March, total trading has surged by over 20%.

The surge is attributed to a rise in bulk and block deals, with notable transactions involving companies like Nykaa, Swiggy, and KPR Mill boosting cash market activity. Ravi Chander Khurana, CEO of Khurana Securities, stated that improved investor sentiment stems from recent U.S. tariff policy announcements and a 90-day relief by President Trump, alongside a ceasefire with Pakistan that alleviated geopolitical tensions.

This has reinforced confidence among foreign institutional investors, who have been net buyers in May, reflecting a recovery in the domestic stock market from February's lows and again highlighting the underlying strength of the equity market. Additionally, small-cap and mid-cap equities have outperformed. The Reserve Bank of India's interest rate reductions this year have further enhanced market liquidity and sentiment, collectively driving the increase in cash market turnover.

Hindusthan Samachar / Jun Sarkar