Stock market turnover expands 4 times since 2004: Economic Survey

BSE and NSE, India's two premier stock exchanges, have quadrupled in size during past four years with the combined turnover of spot and derivatives segments jumping to over Rs 166 lakh crore in 2007.

According to the Economic Survey, the turnover of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) surged by 286 per cent to Rs 1,66,69,410 crore in 2007 as compared to Rs 43,09,692 crore in 2004.

"The spot market turnover (one way) for NSE and BSE amounted to Rs 45,08,709 crore. In the derivatives market, the turnover of these two exchanges added up to Rs 1,21,60,701 crore during 2007, showing a quantum growth over previous year," the survey said.

During 2004, the spot market turnover for NSE and BSE stood at Rs 17,03,781 crore, while in the derivatives market it was Rs 26,05,911 crore.

In terms of institutional players, both FIIs and mutual fund leveraged their activity in the equity market during the year, it noted.

The net investment by FIIs in both spot and derivatives markets witnessed a quantum jump during 2007, while the corresponding gross buy and sell by FIIs increased significantly as well.

Last year, FIIs net activity constituted 17.3 per cent of the spot market and nine per cent of the derivatives market.

Besides, the assets managed by mutual funds grew by 1.7 times from Rs 3.23 lakh crore in 2006 to Rs 5.5 lakh crore in 2007.