Retail investors demonstrated resilience in the equity market in April, undeterred by the ongoing West Asia crisis and escalating crude oil prices that have challenged inflation and economic growth. Despite significant volatility, with the markets experiencing a sharp decline over five trading sessions, retail investors continued to invest actively in shares.
The average daily turnover (ADT) in the cash segment on the National Stock Exchange (NSE) reached a 20-month high of ₹1,34,709 crore in April, representing an 8 percent increase from ₹1,25,169 crore recorded in March. This surge signals a strong commitment from retail investors to the Indian growth narrative, even amidst troubling geopolitical circumstances.
Overall, the cash market turnover on the NSE rose by 13 percent to ₹26.94 lakh crore in April, compared to ₹23.78 lakh crore in March. Conversely, the ADT in the Bombay Stock Exchange (BSE) fell slightly to ₹9,323 crore from ₹9,375 crore in March, although the total turnover on the exchange increased to ₹1,86,462 crore in April from ₹1,78,134 crore in the previous month.
Market volatility hit unprecedented levels as foreign investors realized profits, leading to a cumulative drop of nearly 3,900 points in the Sensex across five trading sessions in April. However, the index ultimately gained 4,965 points, or 7 percent, throughout the month, primarily driven by retail investing and mutual fund activities. The Nifty index recorded a 6 percent increase during the same period.
Foreign portfolio investors withdrew ₹60,847 crore in April, contributing to a total outflow of ₹1.92 lakh crore over the last four months of 2026 as crude oil prices approached $104 a barrel, exacerbated by issues related to the Strait of Hormuz.
Tanvi Kanchan, Associate Director at Anand Rathi Shares and Stock Brokers, remarked that the increased cash market turnover amidst heightened volatility reflects the growing maturity of retail investors. She highlighted that these investors are beginning to understand that substantial equity returns are often realized by those who maintain their investments during times of uncertainty.
Furthermore, the anticipated wave of retail investor exits typically observed during market downturns was notably absent this time. Kanchan noted that Systematic Investment Plan (SIP) investors who consistently contributed every month, irrespective of market headlines, made prudent decisions that are likely to yield significant benefits.
With the count of demat accounts surpassing 24 crore and SIP inflows at approximately ₹30,000 crore per month, along with rising equity cash market turnover, retail investors are showcasing enhanced confidence in the market. Analysts pointed out that large-cap valuations have significantly normalized, with dollar-cost averaging occurring after a 15-16 percent market decline from its peak in dollar terms. Notably, a projected earnings growth of 12-14 percent for large-cap stocks in FY27 is seen as positive news for long-term investors.
Published on May 9, 2026.
