On May 31, India’s stock markets experienced a sudden surge in trading activity. The National Stock Exchange (NSE) saw the value of shares bought and sold double from the previous day, making it a rare occurrence even during major news or developments. For example, on March 12, 2020, when the World Health Organization declared the coronavirus outbreak a global pandemic, stock market activity rose by 22% from the previous day but did not double.
The last time stock market trading activity doubled was on May 16, 2014, when Narendra Modi won with an absolute majority in the Lok Sabha elections. This victory was a significant surprise at the time and had not occurred in three decades. The frenetic activity on May 31 in India’s stock markets is therefore a noteworthy event that highlights the significance of this surge in shares trading. It is uncommon for stock market trading to double in a single day and typically happens during major surprises or unexpected developments.
