Market Volatility Hits Cash Volumes, But 2026 Outlook Remains Bright
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 Volumes Take a Hit
‘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.’
This decline in cash market volumes can be attributed to various factors, including US trade policies and continued selling by Foreign Institutional Investors (FIIs).
Anand Rathi Share & Stockbroking’s Growth Strategy
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 US trade policies and continued selling by 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.’
Predictable Growth through Margin Trading Facility
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.
Optimistic Outlook for 2026
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.’
This optimism is shared by many market experts, who believe that the Indian economy is poised for growth in the coming year. With the Nifty 50 and Sensex expected to continue their upward trend, investors are advised to stay informed and adapt to the changing market conditions.
Investment Strategies for 2026
As the market continues to evolve, it’s essential for investors to stay up-to-date with the latest news and trends. Whether you’re a seasoned investor or just starting out, it’s crucial to have a well-diversified portfolio and a long-term perspective.
Some of the key investment strategies for 2026 include:
- Diversifying your portfolio across different asset classes, such as stocks, bonds, and mutual funds.
- Investing in sectoral indices and thematic investing to capitalize on emerging trends.
- Utilizing technical analysis and fundamental analysis to make informed investment decisions.
By staying informed and adapting to the changing market conditions, investors can navigate the complexities of the Indian stock market and achieve their long-term financial goals.