Equity cash turnover rises 22% MoM in September; H1FY26 records 19% YoY decline

Equity cash turnover rises 22% MoM in September; H1FY26 records 19% YoY decline

Equity market activity picked up in September even as overall turnover for the first half of FY26 remained lower year-on-year, according to the latest edition of NSE Market Pulse.

The report highlighted that equity cash turnover rose 22% month-on-month (MoM) to Rs 21.6 lakh crore in September, aided by a higher number of trading days. The average trade size increased 4% MoM to Rs 30,927 per trade, while the number of transactions grew 17% MoM, with participation from 1.18 crore investors during the month. On an average daily basis, turnover stood at Rs 98,312 crore, up 5% from August.

Despite the monthly increase, the report noted that activity was lower on broader timeframes. Equity cash turnover fell 7% quarter-on-quarter (QoQ) during July–September, while for the first half of FY26, it declined 19% year-on-year (YoY). The report added that investor participation averaged 1.15 crore investors per month in H1FY26, down from 1.47 crore in the corresponding period of FY25.

The report also pointed out that trading activity continued to be concentrated among large-cap stocks. The top decile accounted for nearly three-fourths of total cash turnover in September, while the top two deciles together represented 89%, showing a slight diversification in activity beyond the largest stocks.

In the derivatives segment, the report observed mixed trends. The average trade size for index futures fell 1% MoM to Rs 27.9 lakh per trade, and index options premiums declined 4% MoM to Rs 9,049 per trade. However, single-stock derivatives saw gains, with stock futures average trade size rising to Rs 8.6 lakh—an 11-month high—and stock options premiums increasing to Rs 12,488 per trade.

Combined activity in the equity cash and derivatives markets averaged 8.5 crore trades per day in September, up 4% MoM, the report stated.

The report further highlighted that NSE’s transition of index derivatives expiry to Tuesday, effective September 1, reshaped expiry-week trading behaviour. Following this change, Nifty50 daily premium turnover rose 2.7% MoM to Rs 37,393 crore, accounting for 88% of total index options daily premium. In contrast, turnover in BankNifty, FinNifty, and MidCapNifty contracts moderated.

According to the report, futures turnover across major indices declined in September. Index futures were down 13% MoM to Rs 22,880 crore, while stock futures dropped 5% MoM to Rs 1.14 lakh crore, both marking 22-month lows. On the other hand, index options premiums increased 2% MoM to Rs 42,424 crore, and stock options premiums rose 8% MoM to Rs 6,238 crore.

On a quarterly basis, equity futures turnover fell 12.1% QoQ, while options premiums declined 12.2% QoQ, the report said. For the first half of FY26, the declines widened to 24.8% and 26%, respectively, compared with the same period a year earlier.