Mumbai, Oct. 5 -- Trading activity in Indian stock markets fell sharply in the September quarter, with volumes in both the cash and derivatives segments declining as rising global bond yields, foreign outflows and new regulatory curbs on traders weighed on sentiment.

The combined average daily equity cash volume of NSE and BSE fell 11.7% sequentially to Rs.1.29 trillion in July-September, reversing a 13% rise in the preceding quarter, according to exchange data. The combined average daily index-options premium volume fell by a sharper 27% to Rs.63,326 crore over the same period-extending an 11% decline in the April-June quarter, and marking a second straight quarterly drop.







The slowdown reflects a confluence of pressures. A surge ...