The average daily turnover (ADT) in the cash segment of the secondary equity market is showing signs of recovery following a recent decline, bolstered by increased retail participation despite ongoing uncertainties regarding high valuations and economic growth.
According to data from the National Stock Exchange (NSE), the ADT last month rose marginally to ₹98,740 crore, up from ₹98,312 crore in September, and representing a 6 percent increase from ₹93,545 crore in August. However, for the first seven months of the current fiscal year, the ADT has decreased by 19 percent to ₹1.01 lakh crore, compared to ₹1.24 lakh crore during the same period last year.
The number of listed entities on the NSE has increased by 10 percent in September, reaching 2,856, up from 2,604 in the same period last year, attributed to a significant number of companies pursuing the Initial Public Offering (IPO) route.
In contrast, the ADT in the cash segment on the Bombay Stock Exchange (BSE) fell to ₹7,662 crore last month, down from ₹7,743 crore in September. For the first seven months of the fiscal year, the ADT declined by 17 percent to ₹7,598 crore from ₹9,128 crore last year. However, traded securities on the BSE increased by 7 percent to 6,277 in September compared to 5,869 during the previous year.
Abhishek Mishra, Founding Partner at SKG Investment & Advisory, noted that equity markets are beginning to show cautious signs of recovery, although the breadth of market participation remains robust, with both NSDL and CDSL adding 25 lakh new demat accounts, totaling 20.7 crore in September, a 1.2 percent increase from August.
Mishra emphasized that sustained IPO activity, growing demat accounts, and daily turnover exceeding ₹1 lakh crore reflect a market that is managing high valuations rather than pulling back.
Kamraj Singh Negi, Managing Director of Investment Banking at Pantomath Capital, remarked that the fluctuations in cash segment turnover signal improved market sentiment and selective retail re-engagement, closely aligned with visible earnings momentum and IPO opportunities, as opposed to widespread speculative trading.
Negi added that the capital markets continue to expand in both breadth and value, highlighting an improvement in the quality of listings. He stated that ongoing IPO activity contributes to market vibrancy and depth, while the real strength lies in the sustained growth of Indian companies and a maturing investor base.
Ajit Mishra, Senior Vice President of Research at Religare Broking, indicated that the recent uptick in market momentum and sentiment signifies early signs of renewed retail engagement, although a consistent upward trend is essential for a complete resurgence in trading activity.
Furthermore, the trend of rising market capitalization underscores improving valuations of existing listed entities, reflecting stronger corporate fundamentals and sustained investor confidence in India’s long-term economic outlook. Mishra noted that a strong pipeline of IPOs, supported by favorable market conditions and robust investor demand, has introduced several high-quality companies to the exchanges.
Published on November 8, 2025.
