Retail investors shrug-off West Asia impact, cash equity market investment hits 20-month high

Unmindful of the West Asia crisis and rising crude oil prices posing a major challenge to inflation and growth, retail investors continued to pump-in more money in the equity market in April even as the markets turned highly volatile after tanking sharply in five trading sessions. of the month

The average daily turnover (ADT) in the cash segment on NSE hit a 20-month high of ₹1,34,709 crore last month, against ₹1,25,169 crore logged in March, an 8 per cent increase as retail investors continued to bet big on the India growth story despite disturbing geo-political developments.

Overall, the cash market turnover on NSE was up 13 per cent last month at ₹26.94 lakh crore, against ₹23.78 lakh crore in March.

However, ADT in the cash segment of BSE was down marginally last month at ₹9,323 crore, against ₹9,375 crore in March, though the overall turnover on the exchange was up at ₹1,86,462 crore in April, against ₹1,78,134 logged in March.

Market volatility hit a new high as foreign investors booked profit and the bellwether Sensex tanked nearly 3,900 points cumulatively in five trading sessions last month. However, it ended with a gain of 4,965 points or 7 per cent in April, due largely to retail investors and buying by mutual funds. Nifty increased 6 per cent in April.

Foreign portfolio investors pulled out ₹60,847 crore in April and ₹1.92 lakh crore in the last four months of 2026 as crude oil touched $104 a barrel constrained by Strait of Hormuz transit.

Tanvi Kanchan, Associate Director, Anand Rathi Shares and Stock Brokers, said the boost in cash market turnover during heightened volatility shows the maturity of retail investors and they are realising that the best equity returns are made by investors who stay invested through periods of uncertainty.

Moreover, the wave of retail investor exits that used to amplify during a market downturn, was not visible this time around.

SIP investors who continued with their SIPs every month regardless of the headlines, made the right decision and will benefit the most, Kanchan said.

With the number of demat accounts now exceeding 24 crore, SIP flows at ₹30,000 crore per month and the equity cash market turnover rising, reflects retail investors’ confidence, she added.

Large-cap valuations have normalised significantly, with the dollar-cost averaging out after the market fell 15-16 per cent from their peak in dollar terms. Interestingly, earnings growth of 12-14 per cent is expected in large-cap stocks in FY27, which bodes well for long-term investors, said an analyst with a broking firm.