A tale of two markets

Public discourse around Indian markets is centred on exploding options volumes, rapid intraday trading, and retail participation in speculative trade. However, cash equity data show that a majority of trades now result in delivery rather than same-day squaring off.

Data on Thurro’s platform show that delivery trades now account for roughly 60% of total cash equity transactions in January 2026, compared with around 42% in January 2018. The share fell during the pandemic years but has been on the rise since. In fact, it has been in the high 50% range since September 2024.

The share of delivery trades has been on the rise consistently since the pandemic years

This means that a majority of cash equity trades now result in ownership transfer rather than being squared off intraday, which, in turn, implies that intraday trading makes for a smaller share of the cash market activity.

The number of active demat accounts across depositories—National Securities Depository Ltd and Central Depository Services Ltd—has increased significantly over the years, as we mentioned in an earlier note. It has risen six-fold to 219.5 million in January 2026 from 33 million in July 2018.

The number of accounts with CDSL, which caters to retail investors, has jumped 11x during the same period, suggesting that equity ownership has broadened significantly.

The number of active demat accounts has risen six-fold since 2018

The number of accounts with CDSL has jumped 11x since 2018

Speculative trading appears increasingly concentrated in derivatives. A look at derivative numbers shows that monthly equity derivative premium turnover has risen sharply since 2023.

Premium turnover reflects the actual amount paid for options contracts. The sharp rise over the last couple of years indicates a significant increase in in options activity. Incidentally, this growth in derivatives activity has occurred alongside a rising delivery share in cash equities.

Monthly equity derivative premium turnover has risen sharply since 2023

Taken together, the data suggest that Indian market structure has evolved along two parallel tracks. First, the cash equity segment has become delivery-heavy, with a majority of transactions resulting in ownership transfer. Second, trading intensity has migrated to the options market.

Indian markets today are both more speculative and more ownership-driven than before, but in different layers of the ecosystem. The cash segment increasingly reflects participation expansion and long-term ownership; derivatives absorb a growing share of trading intensity.

The bifurcation has implications for market intermediaries. Depositories—CDSL and NSDL—are structurally aligned with the delivery-heavy, ownership-driven trend in cash equities. A rising demat account base and a higher share of delivery trades both translate directly into increased custody and settlement activity, which is core to their business.

On the other side of the bifurcation, brokerages with strong derivatives franchises are aligned with rising options activity. Firms such as Zerodha, Angel One, even Groww whose revenue mix skews toward derivatives, stand to benefit from the continued growth in premium turnover.

Cover photo credit: BSE

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