NSE Turnover Hits 2-Year Low Amid Uncertainty Over Mid Cap and Small Cap Returns

Trading activity on the National Stock Exchange (NSE) has seen a sharp drop in December 2025, with average daily turnover falling to its lowest level in 2 years, as per The Economic Times report.  

The slowdown follows subdued investor interest in small- and mid-cap stocks and limited volatility in broader market indices. 

Daily Turnover Falls to ₹90,076 Crore in December 2025 

As of December 2025, the average daily equity market turnover on the NSE has declined to ₹90,076 crore. This marks a significant fall compared to ₹1,04,576 crore in November and ₹98,740 crore in October.  

The current level mirrors figures last seen in November 2023, when turnover was ₹70,615 crore. This decline in volume comes even as the Sensex and Nifty touched all-time highs on December 1, 2025, before slipping around 2% each. 

Mid- and Small-Cap Underperformance Dampens Trading 

The muted turnover is closely linked to the underperformance of key indices like the Nifty Midcap 150 and the Nifty Smallcap 250. The Nifty Midcap 150 has risen only 3.9% in 2025 and declined 1.6% in the past month.  

Meanwhile, the Nifty Smallcap 250 has dropped 8% since January and 4.4% over the past 30 days. Weak returns have led investors to reduce participation and lower churn in portfolios. 

Read More: HCLTech Partners NSE Academy to Launch Joint Tech–Finance Certification Programs! 

Retail and HNI Participation Declines 

Retail investor activity has slowed down, with trading volumes reportedly falling 20% year-on-year. Many portfolios have not recorded meaningful gains, causing retail participants to limit exposure.  

High-net-worth individuals (HNIs) have also reduced equity exposure, turning towards IPOs where listing gains are still possible. Reduced volatility in equity markets has further discouraged short-term participation. 

Conclusion 

NSE's equity market turnover has dropped to its lowest point in 2 years. Contributing factors include subdued mid- and small-cap performance, tepid retail interest, reduced volatility, and institutional reallocation. The current state indicates limited investor confidence despite index highs earlier in the month. 

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