The Indian capital markets have begun the second half of FY26 on a strong note, supported by broad-based participation across retail investors, sustained activity in derivatives and resilient inflows into mutual fund SIPs.
Key metrics across demat accounts, F&O ADTO, cash market turnover and wealth-creation trends indicate that the long-term structural story remains intact despite regulatory changes and temporary volatility.
Demat Account Additions Show Structural Strength
Demat account penetration continues to deepen, reflecting an ongoing financialisation of household savings. The total demat accounts increased from 19.4 crore in April to 21 crore by October, marking a healthy addition of 1.6 crore accounts in seven months.
Monthly incremental additions remained robust, ranging between 20 lakh to 30 lakh, reaffirming that the surge in retail participation seen over the past few years a structural shift.
F&O ADTO Surges As Retail Interest Remains Strong
The derivatives market witnessed significant traction, with average daily turnover rose sharply in October to Rs 5.06 lakh crore — well above the average of last six months at Rs 3.82 lakh crore. After a relatively softer start in April–June, F&O activity picked up meaningfully from July onwards, driven by improving market sentiment, better volatility and increased retail participation.
The rising interest is also partly attributable to enhanced margin systems and greater comfort with risk management tools among retail traders. The October spike underscores a renewed appetite for options trading and a strong risk-on sentiment.
Cash Market Turnover Supported by Margin Facilities
Cash market ADTO remained steady, supported by margin trading facilities that enabled higher participation. The monthly ADTO hovers between Rs 1 lakh and Rs 1.2 lakh crore during April to October, with the H1 average standing at Rs 1.09 lakh crore. Stability in cash turnover suggests sustained investor confidence and continued demand for direct equity investing.
SIP Inflows Maintain Record High Levels
Mutual fund SIP inflows continue to touch new highs, rising from Rs 26,600 crore in April to Rs 29,500 crore in October. The consistent month-on-month increase reaffirms the maturing investment behaviour of Indian households. The resilience of SIP flows, even amid regulatory changes and volatility, highlights widespread investor discipline.
Strong Recovery From Recent Lows
Listed market intermediaries and platforms have delivered robust gains from their recent lows. MCX surged 122%, followed by MOFSL (86%), Anand Rathi Wealth (81%), CDSL (51%), BSE (42%), and Angel One (35%). These sharp recoveries reflect improving business outlook, strong transactional volumes and the broader market rebound.
Valuations Remain Aligned With Long-Term Averages
Despite the rally, valuations across the brokerage and market infrastructure sector remain largely in line with long-term averages, with P/E multiples ranging from 18x for MOFSL to 54x for CDSL and Anand Rathi Wealth. This suggests room for steady expansion as earnings visibility improves.
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