Equity cash turnover hits 16-month high of ₹23.9 lakh crore in Jan; IPO fundraising slumps to 21-month low

India’s secondary market activity gathered momentum in January 2026, with equity cash turnover surging to a 16-month high even as primary market fundraising moderated during the month, according to the latest report by the National Stock Exchange of India (NSE).

Monthly turnover in the equity cash market (CM) segment rose to ₹23.9 lakh crore in January, despite fewer trading sessions compared with December 2025. Average daily turnover (ADT) climbed to ₹1.2 lakh crore, marking a 16-month high, up 27% month-on-month (MoM) and 24% year-on-year (YoY), says the NSE Market Pulse report.

The expansion was led primarily by mainboard equities, which accounted for 89% of total cash market turnover and contributed 67% of incremental ADT growth. Mainboard turnover grew 19% MoM.

The data showed that exchange-traded funds (ETFs) recorded a sharp 174% sequential jump, taking cumulative growth since January 2025 to 699%, while sovereign gold bonds rose 95% MoM, reflecting renewed investor interest in gold amid global uncertainty and domestic price volatility.

In contrast, activity in NSE Emerge equities declined 19% MoM, while InvITs and REITs saw sharper sequential drops of 50% and 49%, respectively.

Equity futures turnover hits 15-month high

Derivatives activity also strengthened across segments. Equity futures ADT rose 29% MoM to a 15-month high, supported largely by single-stock futures. However, a decline in average trade sizes suggested that growth was driven by higher trade counts rather than larger positions, the report noted.

Equity options ADT climbed 35% MoM, with Nifty50 options accounting for over 90% of index options turnover, underscoring continued liquidity consolidation in the benchmark contract.

Currency derivatives registered a modest 7% MoM increase in activity, though volumes remained lower on a YoY basis due to regulatory recalibration. Commodity derivatives recorded firm sequential growth, with futures turnover up 17% and options premium turnover rising 46%, the data showed.

IPO fund mobilisation moderates

In contrast to buoyant secondary market activity, primary market mobilisation moderated in January. Total fundraising declined to ₹1.1 lakh crore, the lowest level in 21 months. Equity issuances fell 45% MoM, while debt issuances dropped 53%, reflecting a broad-based slowdown amid softer market conditions, as per the report.

During the month, eight companies listed through IPOs, including three mainboard issues that collectively raised ₹4,765 crore, down 78% MoM, and five listings on the Emerge platform that raised ₹258 crore, down 60%.

Of the eight listings, four debuted at a premium, while the remaining four listed below their issue price, indicating a mixed investor response.

FY26 fundraising remains robust

Despite the January moderation, overall primary market activity in FY26 (till January) remained strong. Total mobilisation was dominated by debt instruments at 73%, followed by equity at 25.7% and business trusts at 1.3%.

Within equity issuances, 40% was raised through IPOs and 60% via follow-on offerings.

A record 96 mainboard IPOs were launched during the fiscal up to January, collectively raising ₹1.6 lakh crore, including four issues exceeding ₹10,000 crore each.

Retail individual investors increased their participation in mainboard IPOs to 24.6% in FY26 from 19.5% in FY25, while qualified institutional buyer (QIB) participation moderated to 60.5%. In the SME segment, retail and QIB participation stood at 37.5% and 38.5%, respectively.