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Muted investor sentiment drags cash market turnover to February levels

Turnover dips for second straight month as cash market loses momentum; F&O activity also softens.

August 28, 2025 / 05:03 IST
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The combined cash market turnover of the BSE and NSE continued to weaken in August, slipping to a six-month low, as volatility in Indian equities kept investor participation subdued.

Exchange data showed that the average daily turnover in the cash segment has dropped below Rs 1 lakh crore so far in August, marking the lowest level since February.

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This is also the second consecutive month of decline on a month-on-month basis and down nearly 20 percent from June, underscoring the absence of a strong rally that had previously spurred momentum-driven trading. Instead, benchmark indices have largely moved sideways in recent weeks, leading to muted volumes.

Market sentiment has also been weighed down by persistent global uncertainty, especially around trade and tariff issues. However, domestic liquidity remains resilient. Systematic Investment Plan (SIP) inflows touched record highs, reflecting continued confidence of retail investors in India’s long-term growth prospects.