Turnover in the stock market refers to the total value of shares traded during a specific period, such as a day, week, or month. It reflects the overall trading activity and liquidity of the market or a particular stock. A higher turnover indicates that more investors are buying and selling, suggesting strong market participation and interest, while a lower turnover may signal reduced trading activity or limited investor confidence.

In simple terms, turnover is calculated as the total number of shares traded multiplied by their market price. For example, if 1 lakh shares of a company are traded at _100 each in a day, the turnover for that stock is _1 crore. Turnover is a key metric used by analysts and investors to assess market sentiment, stock liquidity, and the efficiency of trading platforms.

Market turnover can be segmented into equity turnover, derivative turnover, and commodity turnover, depending on the segment in which trading occurs. In equity markets, it helps investors understand how actively a stock is traded. In derivatives, turnover indicates the notional value of contracts traded, which reflects market interest in futures and options positions.

From an investor’s perspective, monitoring turnover provides insights into market trends and liquidity. High turnover during rising prices often signifies bullish sentiment, whereas a drop in turnover during falling prices may indicate waning investor interest. However, turnover alone should not be used for making investment decisions; it must be analyzed alongside other factors such as volume, volatility, and price movement.

Understanding turnover helps traders and investors make more informed decisions while maintaining compliance with SEBI regulations and focusing on responsible, data-driven investing practices in India’s evolving capital markets.