Comparative View Of Volumes In Key Asset Classes

In our slide shows, we have been highlighting various aspects that we think will be interesting for our readers. In this slide show, we will take a look at the volumes that are witnessed in different asset classes. We have taken into consideration four main asset classes, viz. Equity, Gold, Silver and Crude Oil.

Here, we will look at the volume trends in these asset classes from January 2007 to December 2012. We are going back to the year 2007 in order to capture the bull phase, the bear phase and the recovery phase that have been observed in the last six years. Read on to learn more on the volume trends in these asset classes.

Source: MCX, NSE

Mentioned above is an integrated chart which indicates the behaviour of volumes witnessed across the asset classes. These have been explained as below.

Equities
Let us begin with equities. For the purpose of this analysis, we have considered the shares traded in S&P CNX Nifty. When we look at the volumes traded in equities since 2007, we find that starting January 2007, these have improved. In the year 2007 where we have started, the average volumes traded per day stood at 9.81 crore. In the year 2009, this average has increased to 16.76 crore per share. In the year 2012, the volumes are a tad lower at 15.49 crore shares. The year 2009 saw the highest volumes, averaging 28.17 crore share per day on the bourses. Overall, it can certainly be said that the volumes have witnessed an up-move.

Source: NSE

Gold
Gold is another asset class that is very close to the heart of the Indian people. While looking at the volumes, we find that it has remained one of the active assets. The average volume for the entire 2007, when the Indian markets were witnessing a bull phase, stood at 603000 contracts. As the markets dipped into a bear phase, the volumes in the metal started rising. In the year 2008, we saw the highest average monthly volume of 1168000 contracts. The next four years, viz. 2009, 2010, 2011 and 2012 witnessed average monthly volumes of 1012000, 1004000, 1054000 and 823000 contracts respectively. It must be remembered that in this five-six year period, the gold prices have reached their all-time high. The year 2012 has been a better year for equities, where we find that till today the total average traded volume is lower. This can be extrapolated that some amount of money is being diverted from gold towards riskier assets like equities.

Source: MCX

Silver
Silver is another asset that has seen a dream run since the world economies entered a recessionary trend. This has lured many investors to trade in this asset, which has undoubtedly yielded handsome returns. Coming to the volumes, they have certainly improved from the start of 2007 till the end of 2011. The average volume in the year 2007 stood at 765000 contracts, from where it has reached average volume of 2036000 contracts in the year 2011. As 2012 has been a better year for equities, the total average traded volume for silver in the year is lower and stands at 1381000 contracts.

Source: MCX

Crude Oil
Crude Oil is another commodity that is linked directly to the growth of the economy. This has witnessed better monthly volumes in the time period under consideration. In the year 2007, the average monthly stood at 1161000 contracts. In the following years, between 2008 to 2012, the volumes have risen considerable to an average monthly volumes of 4635000 contracts. In the year 2009, the volumes saw a considerable rise to 3424000 contracts from 1708000 contracts in the year 2008.

Source: MCX