The combined MTF book across the NSE and BSE fell ₹7,516 crore in October through October 23, settling at ₹1.51 lakh crore – the first monthly decline in seven months.
During the same seven trading sessions, the Nifty Midcap index slid 6.2% and the Nifty Smallcap fell nearly 9%, while the Nifty 50 shed less than 1%.
Zerodha co‑founder Nithin Kamath warned that a steady rise in securities transaction tax and stricter futures‑options rules have nudged traders toward options buying, which now accounts for 90% of F&O volume. He added that only about 50% of futures traders and 40% of options sellers turn a profit, with just 10% of options buyers doing so.
The report shows small‑cap stocks comprise 49% of the outstanding MTF book, followed by large‑caps at 31% and mid‑caps at 20%.
With regulators eyeing tighter oversight of crypto derivatives and potential changes to margin requirements, the MTF market may see further volatility, especially if mid‑ and small‑cap exposure continues to shrink.