Beyond misleading trading turnover numbers — the actual size of Indian capital markets?
Looking at trading turnover to estimate capital market size is misleading. Most trades are leveraged & ideally we should look at the margins being traded, not the trade value. Turnover this way will be less than 10% of the trading turnover declared.
The best way to estimate the size of the Indian capital markets is by checking the revenue pool. This I think, is less than Rs 50k crores across 1500+ brokers, exchanges, & depositories. FYI, revenues of Reliance was Rs 6.5lk crs & Infy Rs 94k crs.