Retail investors seem to have been making a tentative re-entry into the stock market in the last couple of months, after having cut back on their trading activity as the indices fell sharply in 2011. At the National Stock Exchange (NSE), turnover in the cash segment has risen to 10.3 per cent of the overall turnover this month. Cash volumes, which made up 25-30 per cent of the turnover a few years ago, had fallen to a low of 6.7 per cent of overall volumes in December 2011. They have rebounded sharply in the first two months of 2012. Pointing out that higher cash volumes usually signal retail interest, Mr Motilal Oswal, Chairman and Managing Director, Motilal Oswal Securities, says: “There is a new set of investors coming into the markets. Systematic Investment Plans are bringing in first-time investors. More investors are taking the mutual fund route. Stock SIPs too are picking up, especially in the past six months.”
Source: The Hindu Business Line
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