Retail play in equities cash segment dwindles amid heightened volatility

Share of retail in cash segment down over 10 percentage points in one year; but activity spikes in options

Heightened volatility and lacklustre returns continue to make a dent in retail participation in the equities cash market segment.

The percentage of retail participation in the average daily turnover in the National Stock Exchange’s (NSE’s) cash segment has come down to 40.8 per cent in February 2023, from 52 per cent a year ago. At the peak, retail investors accounted for nearly two-thirds of cash market volumes in July 2020.

The average retail share in cash market volumes has seen sustained decline — from 56.1 per cent in 2020-21 (FY21) to 51.4 per cent in 2021-22 and 47.1 per cent