This contrasting pattern reflects evolving investor behaviour and participation dynamics heading into the new year.
According to the latest report by Motilal Oswal, December saw cash and F&O activity decline sequentially, even as SIP flows scaled new highs and commodity trading rose to fresh peaks.
The brokerage noted that a stable trajectory in mutual fund flows and rising retail participation in commodities will bode well for asset management companies and support the performance of market intermediaries.
Retail trading activity sees sequential decline
Motilal Oswal reported that total equity Average Daily Turnover (ADTO) for December 2025 was flat month-on-month (MoM) at Rs 473.1 trillion. However, underlying components showed weakening trends:
Cash segment ADTO fell 10% MoM to Rs 1.01 trillion.
Option premium ADTO dropped 8% MoM to Rs 679 billion.
Retail cash ADTO declined 6% MoM to Rs 375 billion.
Retail futures and premium ADTO saw an 11% MoM dip to Rs 580 billion.
In terms of market share, NSE continued to dominate the cash segment with a 93% share. In the F&O space, BSE’s notional turnover market share stood at 42.6% in December, down from 43.5% in November, while its premium turnover share rose to 27.7% from 25.9%.
SIP inflows scale new peaks, AUM stable
Even as equity trading softened, SIP flows touched a new record of Rs 310 billion in December 2025, compared with Rs 294 billion in November. The monthly average assets under management (MAAUM) for the mutual fund industry remained stable at Rs 82 trillion, marking an 18% year-on-year rise.
Equity MAAUM also held steady at Rs 35.5 trillion, with Motilal Oswal observing that “stable mutual fund flows and the SIP trajectory will bode well for asset management companies” going forward.
Commodity trading volumes surge
The commodity derivatives segment emerged as the standout performer in December. Total volumes on MCX rose 20% MoM to Rs 178.6 trillion, with:
Options volumes up 17% MoM to Rs 157.9 trillion, and
Futures volumes increasing sharply by 51% MoM to Rs 20.7 trillion.
Notably, base metals ADTO jumped 290% MoM, while bullion and energy options rose 8% and 2% respectively. The premium-to-notional turnover ratio also improved to about 1.1% in December from about 0.96% in the previous month, indicating rising depth in the segment.
IPO momentum sustained, demat additions improve
The primary market remained active in December, with 11 IPOs raising Rs 219 billion, continuing the momentum from previous months.
On the investor side, demat account additions rose to 3.2 million in December, compared with 2.7 million in November. The total number of demat accounts in the country stood at 216 million, reflecting a 17% year-on-year growth, with CDSL holding an 80% market share.
Summary
While retail participation in equities moderated in December 2025, rising SIP flows and increased trading in commodities signal sustained investor engagement through alternative market avenues. Motilal Oswal notes that the combination of stable fund flows, robust IPO activity and record commodity volumes could continue to support capital market intermediaries.
Also Read | Mutual funds increased cash allocation by over Rs 5,900 crore to Rs 2.07 lakh crore in December
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)