Market Volatility Hitting Cash Volumes, But 2026 Outlook Remains Bright, Says Anand Rathi CMD

Persistent global uncertainties and constant selling from foreign investors have dampened sentiment in Indian markets, leading to a significant drop in cash market volumes, according to Anand Rathi Share & Stockbroking CMD Pradeep Gupta.

Speaking to NDTV Profit, Gupta highlighted how the market is currently grappling with a 'hangover' in sentiment, even as market experts see major tailwinds heading into 2026.

"Cash market total overall turnover has gone down by almost 12% to 14% from last month itself," Gupta said. "We have seen about Rs 1.2 lakh crore average cash market turnovers happening on these markets during the first quarter. Now it has come down to about Rs 90,000 - 95,000 crore on an average daily turnover basis."

Anand Rathi Share & Stockbroking is a fully-fledged brokerage house, which got listed on the bourses in late September. Gupta's comments come at a time when the stock has surged up to 42% since its listing.

Gupta attributed the volume dip in cash segment to caution surrounding U.S. trade policies and continued selling by Foreign Institutional Investors (FIIs), rather than increased competition from fintech apps.

"I don't think this is because of competition," Gupta said. "People have become a little bit more cautious... trying to wait for the right kind of product, right kind of scenario."

It must be noted that 50% of Anand Rathi Share & Stockbroking's revenue is generated through the delivery segment.

Despite the immediate headwinds, the brokerage firm is pivoting toward "predictable growth" by expanding its margin trading facility (MTF) and annuity income streams to insulate against volatility.

The firm's MTF book currently stands between Rs 1,224 - 1,235 crore.

Looking ahead, Gupta remains optimistic about a turnaround driven by domestic corporate earnings.

"December quarterly results are going to make a trendsetter," Gupta said. "If you really see calendar year 2026, I think again the market will start showing a certain amount of positive side in terms of growth perspective."