Cash Market Turnover Hits 22-Month High at ₹1.52 Trillion in May 2026; Mid and Small-Cap Stocks Drive Surge, Derivatives Subdued

In May 2026, the cash market turnover soared to a 22-month high, primarily fuelled by robust participation in mid- and small-cap stocks, as per the news report.  

Meanwhile, derivatives volumes remained subdued due to regulatory constraints. 

Surge in Cash Market Activity 

The equity cash segment experienced a significant rise in trading activity in May, with the average daily turnover (ADTV) across the NSE and BSE increasing by 5.7% month-on-month to ₹1.52 trillion.  

This marks the highest level since June 2024. The rise in cash market activity is largely attributed to the continued strength in mid- and small-cap stocks. 

Muted Derivatives Volumes 

In contrast, the derivatives market did not witness similar growth. The ADTV in the futures and options (F&O) segment remained largely flat at ₹485.9 trillion, which is 8% below the peak level of ₹165 trillion in June 2024.  

This stagnation is attributed to regulatory measures such as higher securities transaction tax (STT), larger contract sizes, stricter margin requirements, and the one-exchange-one weekly expiry framework. 

Market Indices Performance 

During May, the Nifty 50 index fell by 1.9%, while the broader market indices showed positive movement. The Nifty Midcap 100 gained 3.2%, and the Nifty Smallcap 100 advanced by 0.7%.  

This divergence indicates that investors are selectively deploying capital into specific market segments, even as the benchmark indices consolidate. 

Read More: RBI Removes FPI Concentration Limits to Boost Debt Market Inflows! 

Conclusion 

In summary, May witnessed a notable increase in cash market turnover, driven by mid- and small-cap stocks, while derivatives volumes remained subdued due to regulatory factors. This divergence highlights the varying investor participation across different market segments. 

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