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Record Cash Deliveries Signal Strong Retail Equity Inflow
26 Nov
Summary
- Delivery volumes on India's stock exchange surged over 50% in FY26.
- Retail investor participation directly and via mutual funds is driving the increase.
- Market experts predict this trend of household savings flowing into equities will accelerate.
India's largest stock exchange has witnessed a significant surge in cash delivery volumes, exceeding 50% to reach a record high in the current fiscal year, FY26. This unprecedented increase is largely attributed to substantial retail investor inflows, marking a strong trend of household savings shifting towards Indian equities. Market analysts predict this momentum will further accelerate in the coming periods.
The average delivery to traded volumes on the National Stock Exchange (NSE) has risen to 31% during April to October of FY26, a notable jump from the 20% average observed over the previous five fiscal years. This indicates that a larger proportion of shares are changing hands, reflecting sustained investor engagement. Mutual fund-led domestic institutional investors have been significant buyers, offsetting foreign portfolio investor selling and supporting market recovery.
Experts attribute this robust retail interest to the financialization of household assets, with younger investors increasingly utilizing systematic investment plans (SIPs) to invest in stocks. The number of equity-oriented mutual fund folios has surged, and SIP inflows have grown substantially. This growing retail participation, whether direct or indirect, is a testament to increased household investments in the equity markets.
