Volume is the number of shares of a company traded during a given period, usually one trading day. It tells you how actively a share is being bought and sold, and helps judge how easy it is to trade and how much interest the market has in it.
What trading volume is
Every trade has a buyer and a seller. If 1,000 shares change hands in one trade, volume rises by 1,000, not 2,000. Over a day, all trades add up to the day's volume. A related measure, turnover, is the total value traded: volume multiplied by the prices at which trades happened.
How it works in India
The NSE and BSE publish daily volume and turnover for every listed share. Indian exchanges also publish delivery volume: the part of the day's trades where shares were actually delivered into buyers' demat accounts, as opposed to intraday trades bought and sold within the same day. A high delivery percentage is often read as a sign of investors buying to hold, while a low percentage suggests mostly short-term trading.
Very large trades are reported separately as bulk deals (above a set share of a company's equity in a day) and block deals (large trades executed in special windows).
A simple example
A company's shares usually trade about 2 lakh shares a day. One day, after it announces strong results, volume jumps to 12 lakh shares and the price rises 6%. The unusually high volume shows that the price move had wide participation. On another day, the price rises 6% on just 50,000 shares; with so little trading, that move is less meaningful.
Why it matters for investors
Volume indicates liquidity: high-volume shares can be bought and sold easily without moving the price much, while low-volume shares may be hard to exit. Volume also adds context to price moves, since moves on heavy volume are usually more significant, and sudden spikes often signal news worth checking.
Volume and small companies
Many small companies, especially on SME platforms, trade in low volumes and sometimes not at all on some days. Their prices can jump on a handful of trades, and selling a large holding can take days or push the price down. Investors looking at such companies often check their average daily volume and how easily they could sell if needed.
Volume and price together
Many investors read price and volume together. A rise on strong volume suggests broad buying interest; a rise on weak volume may not last. A sharp fall on heavy volume can signal serious selling, perhaps after bad news. Volume that dries up during a long decline sometimes suggests sellers are exhausted. None of these are rules, but comparing today's volume with the usual level helps you judge whether a move is ordinary or unusual.
Example on PositoAI: Indian companies with no recent trading
Low volume at its extreme means no trades at all. Of the 2,126 Indian companies on PositoAI, 12 had not traded on the exchange for 60 days or more as on 19 Oct 2026. PositoAI shows these as "Not ranked" and leaves them out of rankings and lists, because without recent trades there is no reliable current price. Their pages still open, with a note explaining why. (Figures as on 19 Oct 2026.)
Common misconceptions
"High volume means the price will rise." Heavy volume can accompany falls just as easily.
"Volume counts buyers and sellers separately." Each share traded is counted once.
"Low volume means a bad company." It means low trading activity, which raises liquidity risk but says nothing direct about the business.
Frequently asked questions
What is average daily volume?
The typical number of shares traded per day over a period, such as 20 or 50 days.
What is delivery percentage?
The share of traded volume that was actually delivered, rather than squared off within the day.
Where can I see volume?
On exchange websites, broker apps and most stock research pages.
What is turnover?
The total value of shares traded.
How to use this on PositoAI
See large bulk and block deals on NSE and BSE on the Flows page, including buying and selling by institutions. PositoAI also notes on company pages when a stock has not traded recently, a useful liquidity warning. PosiStep 5 of PosiCourse, PositoAI's free stock market course, explains orders, liquidity and settlement.
Summary
Volume is the number of shares traded in a period; turnover is the value traded. In India, delivery volume shows how much trading is for holding rather than intraday. Volume indicates liquidity, gives weight to price moves and flags unusual activity, but high volume does not by itself predict the direction of prices.