The daily average retail cash turnover in May has risen to Rs 11,854 crore, levels last seen in CY10, reports Jash Kriplani in Mumbai. The turnover in May was 34% higher than the R8,832 crore clocked in April. What's more, daily average cash turnover in May touched a five-year high of R25,150 crore. Experts say small investors may be using the rally to book profits to make fresh purchases later. “Investors are reinvesting their profits in the mid-cap space,” said Rikesh Parikh, vice-president, market strategy, Motilal Oswal Financial Services.
The BSE Mid-Cap Index is up over 31% this year, outperforming the Sensex’s 17.3% rise. Nearly four-fifths of BSE mid-cap stocks have touched 52-week highs in CY14, while a third have touched all-time highs. Households have been making smaller allocations to financial assets in the last five years—down 500 bps—while spending more on physical assets—up 400 bps. But experts say that with equities among the best performing asset classes for the last 12-24 months, retail investors are increasing their equity allocations.