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Investor activity cools as equity turnover and derivatives volumes contract
India’s equity and derivatives markets saw a rare annual contraction in trading activity, signalling reduced retail participation and cautious risk-taking amid volatility and regulatory tightening.
Market participation in India showed a marked slowdown in 2025 as equity cash market turnover posted its steepest annual decline in three years. Lower retail activity, especially in mid and small cap stocks, weighed on trading volumes amid persistent volatility and weak market breadth. Tighter regulations in the derivatives segment further dampened activity, leading to the first yearly decline in derivatives volumes since 2013 across domestic exchanges.