Onshore trading cooled in 2025 as offshore volumes at GIFT IFSC hit record highs

Onshore trading cooled in 2025 as offshore volumes at GIFT IFSC hit record highs

• GIFT IFSC offshore trading hit record highs in 2025, led by GIFT Nifty derivatives.
• Market turnover and retail participation fell despite positive index returns.
• NSE data reveals offshore trading surge with higher volumes and client codes.

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Trading activity in Indian market-linked products showed a clear geographic divergence in calendar year 2025, with domestic market participation cooling even as offshore trading volumes at GIFT IFSC scaled record highs, according to the National Stock Exchange’s annual highlights.

While secondary market activity onshore weakened during the year, turnover on the NSE International Exchange at GIFT IFSC surged. Total notional turnover on NSE IX crossed $1.16 trillion in 2025, marking one of the strongest years since the exchange began operations. The bulk of this activity was driven by GIFT Nifty derivatives, which alone accounted for about $1.13 trillion in turnover during the year.

Offshore trading activity gathered pace through the year, with NSE IX recording its highest-ever monthly turnover in October 2025. Open interest on the exchange also touched an all-time high, indicating a sustained build-up in positions rather than short-lived trading spikes. The number of unique client codes active on the exchange rose sharply on a year-on-year basis, pointing to expanding participation in offshore Indian market products.

The surge in offshore volumes stood in contrast to trends in domestic markets. On the NSE, cash market turnover declined during 2025, while equity derivatives turnover also saw a significant fall over the year. Retail participation weakened across both segments, with a sharper drop in derivatives trading, even as benchmark indices delivered positive returns.

Taken together, the data shows that 2025 was not a year of subdued interest in Indian market exposures, but one in which trading activity became unevenly distributed. While onshore markets saw a moderation in trading intensity and participation, offshore platforms linked to Indian indices recorded strong growth in volumes, open interest and client activity.

The NSE’s annual numbers capture this divergence without pointing to causes, highlighting how market engagement in 2025 evolved differently across geographies even as Indian equities remained firmly in focus for global participants.