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Volumes dip 43% in scrips under rolling settlement

Deepak Korgaonkar

Volumes in the 375 companies which went into rolling settlement mode on July 2 have dropped 43 per cent to an average of 34 million shares a day, as against an average of 54 million shares before it came into effect. While earlier the daily average turnover of these scrips was Rs 10.73 billion, post-July 2 it has fallen to Rs 7.20 billion.

Within these 375 companies, the top 25 account for 90 per cent of the total volumes on the Bombay Stock Exchange. Incidentally, all the 25 scrips belong to the former A group.

As many as one-third of the 375 scrips are not traded regularly on the bourses. Total average volume of these 125 scrips dropped 96 per cent to a daily average of ten thousand shares as against an average of 300,000 shares traded before these stocks went into rolling mode.

Out of these irregularly traded 125 scrips, 35 companies-one from group A, four from B1, 24 from B2 and six companies from Z group-have not been traded even for a single day since the shift, while the remaining 90 companies have traded irregularly.

California Software, Chicago Software, Gamma Infoway and Morarka Finance are some of the companies, which have not been traded at all on the BSE after shifting to rolling mode.

Krishna Filament and Mahavir Spinning have traded just once in the last 10 trading sessions, Ahmedabad Electricity and B2B Soft Techno have traded in just two sessions, while Asian Hotels, Himatsing Seide, Lakshmi Machine Works, Tata Honeywell, Sundaram Clayton, Soni Infosys and Vysya Bank have traded for five trading sessions out of the 10 on the BSE.

Lakshmi Machine Tools, which had an average daily volume of a thousand shares earlier, is now reporting daily average volumes of just seven shares. Similarly, Asian Hotels' current average daily volume is down to 150 shares, as against daily averages of 1,000 shares traded earlier.

Ashok Leyland, Cadbury, Century Textiles, E Merck, Gujarat Ambuja Cements, HCL Infosystems, Hero Honda, Indian Rayon, Indian Hotels, Indian Oil Corporation, IBP, Mastek, Nirma, PSI Data Systems, Shyam Telecom, Siemens, Shipping Corporation, Television Eighteen, Thomas Cook and United Breweries, which were earlier in the specified group have seen more than a 90 per cent drop in average daily volumes after being shifted to rolling mode.

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