The rapid improvement in the stock market in March 2025 increased trading activity on Indian exchanges. The average daily trading volume (ADTV) in the cash segment rose by 12 per cent to Rs 1.04 lakh crore on a monthly basis, while the derivatives segment rose 23 per cent to Rs 352 lakh crore.
The growth occurred after a difficult period, as the cash market trading fell on a monthly basis in seven months out of eight from July 2024 to February 2025, while Derivatives ADTV remained weak during the last five months due to regulatory strictness and market fall.
This boom corresponds to a strong growth in the market. The Nifty rose 6.3 percent in March (its best month since June 2024), while Nifty Smallcap 100 and Nifty Midcap 100 Index increased by 9.5 percent and 7.84 percent, which is their strongest lead since June 2024 and November 2023.
Despite the recovery, the amount of trading in March remained slow with two-thirds of its high levels. ADTV of the cash segment reached an altitude of Rs 1.65 lakh crore in June 2024, while the futures and options segments were at a high level of Rs 537 lakh crore in September 2024, when the markets touched the record height.
Analysts say the trading volume may improve if the market continues to grow, but due to strict derivative rules, they are suspected of returning to a high level soon. As a result, most people believe that trading revenue will decline in 2025-26.
First Published – March 30, 2025 | 10:28 PM IST