1 week ago
India’s Equity Derivatives Traders Fall as Losses Decline in FY26
Fewer individual people traded equity derivatives in India during fiscal 2026.
Their total losses also became smaller than the year before.
They lost about 916.85 billion rupees in all.
Bigger traders, such as proprietary firms and foreign portfolio investors, made substantial profits.
Proprietary firms made about 440 billion rupees.
Foreign portfolio investors made about 140 billion rupees.
Most of those profits came from computer-based algorithmic trading.
Many index-options trades happened on or very close to the contracts’ expiry day.
The number of individual equity-derivatives traders in India fell about 20% in fiscal 2026.
Individual traders’ aggregate net losses declined to about 916.85 billion rupees from 1.12 trillion rupees the previous year.
Proprietary traders recorded the highest gross trading profit, at about 440 billion rupees.
Foreign portfolio investors recorded about 140 billion rupees in gross trading profit.
Algorithmic trading entities generated 99% of the profits made by proprietary traders and foreign portfolio investors.
- Who
- Individual traders, proprietary traders, foreign portfolio investors and algorithmic trading entities; the Securities and Exchange Board of India reported the findings.
- What
- Individual equity-derivatives traders declined in number and recorded lower aggregate net losses in fiscal 2026, while larger participants remained profitable.
- Where
- India’s equity derivatives market.
- When
- Fiscal 2026, the year ended March 2026; the findings were reported on Thursday.
- Why
- The Securities and Exchange Board of India published the study to describe trading participation, profits and losses, algorithmic activity, and expiry-day concentration.
Key facts
- Individual traders
- Their number fell about 20% in fiscal 2026.
- Individual traders’ losses
- Aggregate net losses fell to about 916.85 billion rupees.
- Previous-year losses
- Aggregate net losses were about 1.12 trillion rupees a year earlier.
- Proprietary-trader profit
- Proprietary traders recorded about 440 billion rupees in gross trading profit.
- Foreign-portfolio-investor profit
- Foreign portfolio investors recorded about 140 billion rupees in gross trading profit.
- Algorithmic trading share
- Algorithmic trading entities generated 99% of the profits made by proprietary traders and foreign portfolio investors.
- Expiry-day concentration
- About 59% of index-options turnover occurred on expiry day, and about 75% occurred within one day of expiry.
Sources
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