India retail traders are cutting back on leveraged stock bets amid market declines, with positions funded by broker money dropping to 1.56 trillion rupees ($16.5 billion) as of Oct. 19. The NSE 500 Index is down nearly 9% from its recent peak, nearing correction territory. Small-cap shares account for 46% of the total leverage book, with investors holding funded positions in over 700 stocks.
Billionaire Nithin Kamath of Zerodha has repeatedly voiced concerns that sharp market falls could trigger severe sell-offs in small- and mid-cap stocks. Hudson River Trading's Indian unit reported a 3.5% revenue and 2.5% profit increase for the quarter ending March 31, likely impacted by tighter options market rules. IT stocks are holding up better, positioned for their best month since 2020.
JM Financial notes recent auto stock sell-offs may be overdone, citing distorted comparisons from last year's strong base. Ambit maintains confidence in telecom tariffs rising about 15% in December 2026, with tower companies facing practical bottlenecks rather than weak demand.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing