Capital market stocks slide on F&O volume concerns; BSE, Angel One, CDSL, Nuvama Wealth fall by up to 9%

Shares of capital markets-linked stocks witnessed sharp selling on Tuesday, in an otherwise muted broader market, amid concerns over falling futures & options (F&O) volumes and declining retail participation, as highlighted in Sebi’s latest data. Weighed down by the development, shares of stockbroking firms such as Nuvama Wealth , Angel One , stock exchange BSE , and depository CDSL declined by up to 7% in intraday trade today.

Shares of Nuvama Wealth Management fell by as much as 1.8% to ₹7,363.50 on the BSE, while the Angel One stock price declined by 6.4% to hit a low of ₹2,607.55 on the BSE.

Shares of BSE nosedived by over 9% to hit an intraday low of ₹2,395 on the NSE, while CDSL shares dropped 3.16% to touch a low of ₹1,722.30 during the session today.

Meanwhile, the equity benchmark indices, the BSE Sensex and the NSE Nifty, ended marginally higher in choppy trade.

The capital markets-linked stocks continued their losing streak for the second straight session after Sebi barred U.S.-based Jane Street Group from participating in the Indian securities market and ordered it to disgorge ₹4,843 crore, citing allegations of manipulating stock indices through derivative positions.

Sentiment was further dented on Tuesday after Sebi data showed that 91% of retail traders lost money in FY25, with cumulative losses rising 41% year-on-year (YoY) to ₹1.05 lakh crore. Adding to the woes, the number of unique individual traders in the equity derivatives segment fell sharply from 61.4 lakh in Q1FY25 to 42.7 lakh in Q4FY25.

This trend has raised red flags about the sustainability of retail-driven F&O volumes, which have been a key driver of revenue growth for brokerages and exchanges.

On Monday, Sebi Chairman Tuhin Kanta Pandey hinted that the regulator is increasing its surveillance to deeply analyse manipulation in derivatives trading, according to a report by news agency Reuters. "There may not be many more such cases," Pandey told the news agency, without divulging too many details. His comments bear significance as the country boasts of the world's largest derivatives market.

The Sebi enforcement action marks its most stringent move since Pandey took charge as the Sebi chief in February 2025. It also underscores the regulator's resolve to crack down on manipulative practices in order to protect retail investors and the overall integrity of the capital markets in India.

Over the years, Sebi has taken several initiatives to make it easier for shareholders to access and participate in voting on resolutions proposed by listed companies. Earlier, the process of exercising voting rights by shareholders—either through physical participation in the meeting or through postal ballot—was a cumbersome process, but setting up of an e-voting system allowed investors to vote remotely and securely, overcoming logistical and geographic barriers, and reducing paperwork and administration cost for the companies.

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