Mumbai, Ahmedabad tighten their hold on trading turnover

At a time when the regulator and all market participants are trying to improve the equity investment culture and spread it across the length and breadth of the country, two cities – Mumbai and Ahmedabad – are not only accounting for the lion’s share of trading activity but also increasing their share in the total pie. 

Data from the Securities and Exchange Board of India (Sebi) shows that the two cities saw their combined share in the total stock market turnover rise in the financial year 2022-23 even as the share of cities outside the top 10 list saw a significant drop in the case of BSE though the National Stock Exchange (NSE) registered a marginal increase. 

As per the latest annual report of the capital market watchdog, the combined share of Mumbai and Ahmedabad rose to 79.2 per cent on NSE in FY23, higher than the previous fiscal’s 76.7 per cent.  

While Mumbai’s share was pegged at 68 per cent in FY23, Ahmedabad accounted for 11.2 per cent. 

Similarly, BSE saw the share of the two cities rise to 62.9 per cent in FY23 from 57.7 per cent in FY22 with Mumbai cornering 39.7 per cent of the pie and Ahmedabad accounting for 23.2 per cent share. 

“Geographical distribution of the turnover (based on broker terminal location) shows that more than 68 per cent of NSE’s turnover and around 40 per cent of BSE’s turnover in cash segment was concentrated in Mumbai (including Thane) in 2022-23. Share of Ahmedabad has been progressively rising over the years, to 11.2 per cent at NSE and 23.2 per cent at BSE,” stated the Sebi annual report for FY23. 

Some of the other locations that feature in the list of top 10 cities in terms of share in the trading turnover include Kolkata, New Delhi, Rajkot, Noida, Vadodara, Jaipur, Hyderabad, Chennai, Bengaluru, Pune, and Cochin – the list of top contributors is not the same for NSE and BSE. 

Interestingly, two lesser-known cities from Telangana – Nalgonda and Vanasthalipuram – have also made their debut in the list of top 10 locations that account for the largest share in trading turnover on BSE. 

More importantly, the share of towns and cities outside the top 10 list saw a significant fall on BSE with the combined share falling to 30.3 per cent in FY23 from 36 per cent in the previous financial year. 

Meanwhile, NSE was able to register a small uptick in the share of such cities – 6.9 per cent in FY23 from 6.7 per cent in FY22.