Market Pulse - March 2024

March 2024
Volume 6, Issue 3
Market Pulse
A monthly review of Indian economy and markets
Market Pulse
March 2024 | Vol. 6, Issue 3
Market Pulse
Volume 6, Issue 3
This publication is issued monthly by the
Economic Policy and Research (EPR) department
of the National Stock Exchange of India Limited. It
is a review of major developments in the economy
and financial markets and market statistics for the
month gone by, insights from cited academic
research papers and topical research articles.
Authors
Tirthankar Patnaik, PhD
Prerna Singhvi, CFA
Ashiana Salian
Prosenjit Pal
Ansh Tayal
Anand Prajapati
Shuvam Das
Date of release: March 26th, 2024
The subscription link and past editions of Market Pulse can be

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reports-nse-market-pulse
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Market Pulse
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Market Pulse
Table of Contents
Executive Summary ........................................................................................................................ 1
NSE at a glance .............................................................................................................................. 3
Key macro charts............................................................................................................................ 4
Key market charts .......................................................................................................................... 5
Story of the month .......................................................................................................................... 6
Who owns India Inc.? FPI share drops further in Q3, DMF share at record high ............................................................ 6
Macroeconomy ............................................................................................................................. 55
Macro round-up ............................................................................................................................................................. 55
Q3FY24 GDP growth at 8.4% beats expectations ......................................................................................................... 57
Industrial activity moderated but sentiments remain strong ....................................................................................... 65
Headline inflation remained steady; core moderated to series low levels ................................................................... 71
Trade Deficit increased in February led by gold imports ............................................................................................... 76
Union finances: fiscal deficit at 63.6% of RE in 10MFY24, remains in check ............................................................... 81
Global macro snippets: Time for cautious optimism ..................................................................................................... 86
Insights ....................................................................................................................................... 92
Reducing Algorithm Aversion through Experience ........................................................................................................ 92
COVID‑19 Vaccination Effect on Stock Market and Death Rate in India ....................................................................... 94
Naïve Buying Diversification and Narrow Framing by Individual Investors .................................................................. 96
Market performance ..................................................................................................................... 98
Market round-up ............................................................................................................................................................ 98
Market performance across asset classes .................................................................................................................. 103
Equity market performance and valuations ............................................................................................................ 105
Fixed income market performance ......................................................................................................................... 133
Commodity market performance ............................................................................................................................ 141
Currency market performance................................................................................................................................. 147
Institutional flows across market segments in India .................................................................................................. 152
Fund mobilization ........................................................................................................................154
Market Statistics: Primary market ............................................................................................................................... 154
New listings in the month ............................................................................................................................................ 156
Investor growth...........................................................................................................................158
Region-wise distribution of total registered investors ................................................................................................ 158
Region-wise distribution of new investor registrations ............................................................................................... 161
Market activity across segments and investor categories ...............................................................165
Total turnover across segments .................................................................................................................................. 165
Average daily turnover (ADT) across segments .......................................................................................................... 167
Category-wise turnover and investments in NSE’s CM segment ................................................................................ 173
Market Pulse
Category-wise turnover and open interest in NSE’s derivatives segment .................................................................. 174
Category-wise participation in turnover across segments .......................................................................................... 180
Distribution of turnover by modes of trading............................................................................................................... 200
Individual investors’ activity in NSE’s CM and derivatives segment ........................................................................... 206
Distribution of trading activity by turnover .................................................................................................................. 210
Spatial distribution of individual investor activity in the cash market......................................................................... 212
Turnover of top-10 traded symbols during the month ................................................................................................ 219
Record statistics .......................................................................................................................................................... 221
Investment through mutual funds in India ....................................................................................222
Comparison of trading activities across major exchanges globally ..................................................228
Policy developments....................................................................................................................234
Annual macro snapshot ...............................................................................................................236
Market Pulse
List of Figures
Figure 1: NSE-listed universe: Ownership pattern by total market cap (%) ..................................................................... 10
Figure 2: NSE-listed universe: Ownership pattern by free float market cap (%) .............................................................. 11
Figure 3: NSE-listed universe: Long-term ownership trend across key stakeholders by total market cap ..................... 13
Figure 4: Total promoter ownership trend of NSE-listed companies by total market cap ............................................... 13
Figure 5: Indian and foreign promoter ownership trend of NSE-listed companies by total market cap .......................... 13
Figure 6: DMF ownership trend of NSE-listed companies by total market cap ................................................................ 13
Figure 7: FPI ownership* trend of NSE-listed companies by total market cap ................................................................ 13
Figure 8: Banks, FIs & Insurance ownership trend of NSE-listed companies by total market cap .................................. 14
Figure 9: Individual ownership trend of NSE-listed companies by total market cap....................................................... 14
Figure 10: NSE-listed universe: Long-term ownership trend across key stakeholders by free float market cap ............ 14
Figure 11: DMF ownership trend of NSE-listed companies by free float market cap ....................................................... 14
Figure 12: FPI ownership trend of NSE-listed companies by free float market cap ......................................................... 14
Figure 13: Banks, FIs & Insurance ownership trend of NSE-listed companies by free float market cap ........................ 15
Figure 14: Individual ownership trend of NSE-listed companies by free float market cap .............................................. 15
Figure 15: Monthly SIP inflows into mutual funds ............................................................................................................ 15
Figure 16: Quarterly SIP inflows vs DMF ownership ......................................................................................................... 15
Figure 17: DMF holding in NSE listed universe .................................................................................................................. 16
Figure 18: DMF segregation: active and passive funds ..................................................................................................... 16
Figure 19: Annual growth of DMF holding in the NSE-listed universe .............................................................................. 16
Figure 20: CAGR of DMF holding in the NSE-listed universe............................................................................................. 17
Figure 21: DMF ownership in total market cap of NSE listed companies ......................................................................... 17
Figure 22: DMF ownership in floating market cap of NSE listed companies .................................................................... 17
Figure 23: Net foreign institutional inflows and FPI shareholding in the NSE-listed floating stock ................................. 18
Figure 24: Annual net FII inflows trend ............................................................................................................................ 19
Figure 25: Net inflows by individual investors in the NSE’s CM segment (2002-) ............................................................ 20
Figure 26: Quarterly trend of number of investor accounts with depositories ................................................................. 20
Figure 27: Annual trend of new investor account additions with depositories ................................................................. 20
Figure 28: NSE-listed universe: Sector-wise ownership pattern across key stakeholders (December 2023) ................ 21
Figure 29: DMF sector allocation of the NSE-listed universe (September 2023 vs. December 2023) ............................ 22
Figure 30: DMF sector allocation of the NSE-listed universe over last five years............................................................. 23
Figure 31: FPI sector allocation of the NSE-listed universe (September 2023 vs. December 2023) .............................. 23
Figure 32: FPI sector allocation of the NSE-listed universe over last five years .............................................................. 24
Figure 33: Nifty 50: Ownership pattern by total market cap (%) ...................................................................................... 25
Figure 34: Nifty 50: Ownership pattern by free float market cap (%) ............................................................................... 26
Figure 35: Nifty 50: Long-term ownership trend across key stakeholders by total market cap ...................................... 27
Figure 36: Total promoter ownership trend of the Nifty 50 universe by total market cap ............................................... 27
Figure 37: Indian and foreign promoter ownership trend of the Nifty 50 universe by total market cap .......................... 27
Market Pulse
Figure 38: DMF ownership trend of Nifty 50 universe by total market cap ...................................................................... 28
Figure 39: FPI ownership trend of Nifty 50 universe by total market cap ........................................................................ 28
Figure 40: Banks, FIs & Insurance ownership trend of Nifty 50 universe by total market cap ........................................ 28
Figure 41: Retail ownership trend of Nifty 50 universe by total market cap .................................................................... 28
Figure 42: Nifty 50: Long-term ownership trend across key stakeholders by free float market cap ............................... 29
Figure 43: DMF ownership trend of the Nifty 50 universe by free float market cap ......................................................... 29
Figure 44: FPI* ownership trend of the Nifty 50 universe by free float market cap ......................................................... 29
Figure 45: Banks, FIs & Insurance ownership trend of the Nifty 50 universe by free float market cap .......................... 30
Figure 46: Individual ownership trend of the Nifty 50 universe by free float market cap ................................................ 30
Figure 47: Nifty 50: Sector-wise ownership pattern across key stakeholders (December 2023) ................................... 31
Figure 48: DMF sector allocation of the Nifty 50 universe (September 2023 vs. December 2023)................................. 32
Figure 49: DMF sector allocation of the Nifty 50 universe over the last five years ........................................................... 33
Figure 50: DMF sector allocation vs sector weight in Nifty 50 (December 2023) ............................................................ 33
Figure 51: DMF sector-wise OW/UW in Nifty 50 relative to sector weight in the index (December 2023) ...................... 33
Figure 52: DMF vs Nifty 50—Sector-wise OW/UW trend (bps) .......................................................................................... 34
Figure 53: FPI sector allocation of the Nifty 50 universe (September 2023 vs. December 2023) ................................. 34
Figure 54: FPI sector allocation of the Nifty 50 universe over last five years................................................................... 35
Figure 55: FPI sector allocation vs sector weight in Nifty 50 (December 2023) .............................................................. 35
Figure 56: FPI sector-wise OW/UW in Nifty 50 relative to sector weight in the index (December 2023) ........................ 35
Figure 57: FPI vs Nifty 50—Sector-wise OW/UW trend (bps) ........................................................................................... 36
Figure 58: Nifty 500: Ownership pattern by total market cap (%) .................................................................................... 37
Figure 59: Nifty 500: Ownership pattern by free float market cap (%) ............................................................................ 38
Figure 60: Nifty 500: Long-term ownership trend across key stakeholders by total market cap .................................... 39
Figure 61: Total promoter ownership trend of the Nifty 500 universe by total market cap ............................................. 39
Figure 62: Indian and foreign promoter ownership trend of the Nifty 500 universe by total market cap........................ 39
Figure 63: DMF ownership trend of the Nifty 500 universe by total market cap .............................................................. 40
Figure 64: FPI ownership trend of the Nifty 500 universe by total market cap ................................................................ 40
Figure 65: Banks, FIs & Insurance ownership trend of the Nifty 500 universe by total market cap................................ 40
Figure 66: Individual ownership trend of the Nifty 500 universe by total market cap ..................................................... 40
Figure 67: Nifty 500: Long-term ownership trend across key stakeholders by free float market cap ............................. 41
Figure 68: DMF ownership trend of the Nifty 500 universe by free float market cap ....................................................... 41
Figure 69: FPI ownership trend of the Nifty 500 universe by free float market cap ........................................................ 41
Figure 70: Banks, FIs & Insurance ownership trend of the Nifty 500 universe by free float market cap ........................ 42
Figure 71: Individual ownership trend of the Nifty 500 universe by free float market cap .............................................. 42
Figure 72: Nifty 500: Sector-wise ownership pattern across key stakeholders (December 2023) ................................. 43
Figure 73: DMF sector allocation of the Nifty 500 universe (September 2023 vs. December 2023) .............................. 44
Figure 74: DMF sector allocation of the Nifty 500 universe over last five years ............................................................... 44
Figure 75: DMF sector allocation vs sector weight in Nifty 500 (December 2023) .......................................................... 45
Market Pulse
Figure 76: DMF sector-wise OW/UW in Nifty 500 relative to sector weight in the index (December 2023) .................... 45
Figure 77: DMF vs Nifty 500—Sector-wise OW/UW trend (bps) ....................................................................................... 45
Figure 78: FPI sector allocation of the Nifty 500 universe (September 2023 vs. December 2023) ................................ 46
Figure 79: FPI sector allocation of the Nifty 500 universe over last five years ................................................................ 46
Figure 80: FPI sector allocation vs sector weight in Nifty 500 (December 2023) ............................................................ 47
Figure 81: FPI sector-wise OW/UW in Nifty 500 relative to sector weight in the index (December 2023) ..................... 47
Figure 82: FPI vs Nifty 500—Sector-wise OW/UW trend (bps) ......................................................................................... 47
Figure 83: Institutional share of total market cap (September 2023 vs. December 2023) ............................................. 48
Figure 84: Institutional ownership of floating stock (September 2023 vs. December 2023) .......................................... 49
Figure 85: Individual share of total market cap (September 2023 vs. December 2023) ................................................. 49
Figure 86: Individual ownership of floating stock (September 2023 vs. December 2023).............................................. 49
Figure 87: Number of listed cos with FPI holding >5%..................................................................................................... 53
Figure 88: Number of Nifty500 cos with FPI holding >5% ............................................................................................... 53
Figure 89: Number of listed cos with DMF holding >5% ................................................................................................... 54
Figure 90: Number of Nifty500 cos with DMF share >5% ................................................................................................. 54
Figure 91: Number of listed companies with Banks, FIs & Insurance holding >5% ........................................................ 54
Figure 92: Number of Nifty500 companies with Banks, FIs & Insurance holding >5% ................................................... 54
Figure 93: India quarterly GDP growth trend .................................................................................................................... 59
Figure 94: Quarterly GDP growth by expenditure (%YoY) ................................................................................................ 60
Figure 95: India GDP sector share of growth (%) .............................................................................................................. 60
Figure 96: Gross value added (GVA) across sectors ......................................................................................................... 61
Figure 97: India GVA sector share of growth (%) .............................................................................................................. 61
Figure 98: Quarterly trend of nominal vs. real GDP and GVA growth ............................................................................... 62
Figure 99: Annual real GDP growth trend .......................................................................................................................... 62
Figure 100: Annual real GDP growth trend ....................................................................................................................... 63
Figure 101: India industrial production (3MMA) ............................................................................................................... 67
Figure 102: India industrial production use-based goods (3MMA) .................................................................................. 68
Figure 103: Long-term industrial production trend (12MMA) ........................................................................................... 69
Figure 104: Eight core industries growth trend (% YoY) ................................................................................................... 69
Figure 105: Manufacturing PMI across countries ............................................................................................................. 70
Figure 106: India’s Manufacturing and Services PMI trend .............................................................................................. 70
Figure 107: Headline CPI inflation trend ........................................................................................................................... 72
Figure 108: Category-wise contribution to India consumer price inflation (CPI) ............................................................. 73
Figure 109: Category-wise contribution to India Food and Beverages inflation (CPI) ..................................................... 73
Figure 110: Trend in retail prices of T.O.P. veggies (Rs/kg) .............................................................................................. 74
Figure 111: Trend in retail prices of pulses (Rs/kg) .......................................................................................................... 74
Figure 112: Category-wise contribution to India wholesale price index (WPI) ................................................................ 74
Figure 113: India wholesale price inflation (WPI) ............................................................................................................. 75
Market Pulse
Figure 114: Gap between wholesale and retail inflation .................................................................................................. 75

Figure 115: India monthly trade balance trend ................................................................................................................ 78
Figure 116: Non-oil, non-gold imports .............................................................................................................................. 78
Figure 117: Oil imports trend ............................................................................................................................................ 78
Figure 118: Oil imports vs. Brent crude oil prices trend ................................................................................................... 79
Figure 119: Forex reserves and import cover (months) .................................................................................................... 79
Figure 120: INR vs. other key Asian market currencies .................................................................................................... 80
Figure 121: Yearly trend of India’s fiscal balances ........................................................................................................... 82
Figure 122: Gross fiscal deficit as % of budget targets during April-January .................................................................. 82
Figure 123: Centre’s gross fiscal trend (% GDP) ............................................................................................................... 82
Figure 124: Direct tax collections trend during Apr-Jan ................................................................................................... 83
Figure 125: Indirect tax receipts trend during Apr-Jan .................................................................................................... 83
Figure 126: Year average of monthly collections .............................................................................................................. 83
Figure 127: GST collections trend ..................................................................................................................................... 83
Figure 128: Revenue and capital exp during Apr-Jan ....................................................................................................... 83
Figure 129: Expenditure mix during Apr-Jan .................................................................................................................... 83
Figure 130: Global Growth and Outlook by the IMF ......................................................................................................... 87
Figure 131: Inflation Across Major Economies ................................................................................................................. 88
Figure 132: Growth Across Major Economies ................................................................................................................... 88
Figure 133: Policy rates across major central banks ........................................................................................................ 89
Figure 134: Policy rates across emerging markets central banks .................................................................................... 89
Figure 135: Unemployment Rates ..................................................................................................................................... 90
Figure 136: Trend in PMI manufacturing across countries ............................................................................................... 90
Figure 137: Consumer Confidence Index across major economies ................................................................................. 91
Figure 138: NIFTY sector performance in February 2024 .............................................................................................. 107
Figure 139: NIFTY sector performance in Jan-Feb 2024 ............................................................................................... 108
Figure 140: Sector-wise contribution to Nifty 50 price return in February 2024 ........................................................... 109
Figure 141: Sector-wise contribution to absolute Nifty 50 Index change (points) in February 2024 ............................ 110
Figure 142: Sector-wise contribution to Nifty 50 price return in 2024 till date (Jan-Feb’24) ....................................... 110
Figure 143: Sector-wise contribution to Nifty 50 Index change (points) in 2024 till date (Jan-Feb’24) ....................... 110
Figure 144: Sector-wise contribution to Nifty 50 price return in last one year (Mar’23-Feb’24) ................................... 111
Figure 145: Sector-wise contribution to Nifty 50 Index change (points) in last one year (Mar’23-Feb’24) .................. 111
Figure 146: Nifty 50 Index monthly movement across sectors over last 12 months..................................................... 111
Figure 147: Nifty 50 Index monthly return across sectors over last 12 months ............................................................ 112
Figure 148: Sector-wise Nifty50 Index attribution (2004-) ............................................................................................ 112
Figure 149: Nifty 50 sector weightage (February 2023) ................................................................................................. 113
Figure 150: Nifty 50 sector weightage (February 2024) ................................................................................................. 113
Figure 151: Sector weights in the Nifty 50 Index (2003-) .............................................................................................. 113
Market Pulse
Figure 152: Sector-wise revision in FY24 earnings estimates for top 200 companies since December 2023 .............. 115
Figure 153: Sector-wise revision in FY25 earnings estimates for top 200 companies since December 2023 .............. 116
Figure 154: Sector-wise share in earnings ...................................................................................................................... 116
Figure 155: Nifty 50 NTM P/E trend for last 15 years ..................................................................................................... 117
Figure 156: Nifty 50 NTM P/B trend for last 15 years ..................................................................................................... 117
Figure 157: Nifty 50 NTM P/E (Last three-year trend) .................................................................................................... 117
Figure 158: Nifty 50 NTM P/B (Last three-year trend) .................................................................................................... 117
Figure 159: Five-year trend of Nifty 50 values at different 12-month forward P/E bands ............................................. 118
Figure 160: NTM P/E of MSCI India vs. MSCI EM (15-year trend) .................................................................................. 118
Figure 161: NTM P/B of MSCI India vs. MSCI EM (15-year trend) .................................................................................. 118
Figure 162: NTM P/E of MSCI India vs. MSCI EM (Last three-year trend) ...................................................................... 119
Figure 163: NTM P/B of MSCI India vs. MSCI EM (Last three-year trend) ...................................................................... 119
Figure 164: Nifty 50 forward earnings yield* vs. 10-year G-sec yield ............................................................................ 119
Figure 165: 12-month forward P/E for MSCI India sector indices (Three-year trend) ................................................... 120
Figure 166: 12-month forward P/E for MSCI India sector indices (Long-term trend) .................................................... 121
Figure 167: 12-month forward P/B for MSCI India sector indices (Three-year trend)................................................... 123
Figure 168: 12-month forward P/B for MSCI India sector indices (Long-term trend) ................................................... 125
Figure 169: Correlation of sectoral Nifty indices in February 2024 ................................................................................ 127
Figure 170: Correlation of sectoral Nifty indices in January 2024 ................................................................................. 128
Figure 171: Correlation of sectoral Nifty indices in 2024 till date (Jan- Feb 2024) ....................................................... 129
Figure 172: Correlation of major global indices in January 2024 ................................................................................... 130
Figure 173: Correlation of major global indices in February 2023 ................................................................................. 131
Figure 174: Correlation of major global indices in 2024 till date (Jan-Feb 2024) ......................................................... 132
Figure 175: India 10Y G-sec yield—long-term trend ...................................................................................................... 134
Figure 176: India 10Y G-sec yield—last one-year trend ................................................................................................. 134
Figure 177: India sovereign yield curve .......................................................................................................................... 134
Figure 178: Change in sovereign yields across the curve ............................................................................................... 135
Figure 179: India sovereign bonds term premia ............................................................................................................. 135
Figure 180: Inflation, yields and spreads in India vs. US ................................................................................................ 136
Figure 181: Spreads between 10-year SDL and G-sec yields ......................................................................................... 137
Figure 182: Spreads for one-year AAA-rated corporate bonds across segments .......................................................... 137
Figure 183: Spreads for three-year AAA-rated corporate bonds across segments ....................................................... 138
Figure 184: Spreads for five-year AAA-rated corporate bonds across segments .......................................................... 138
Figure 185: Spreads for 10-year AAA-rated corporate bonds across segments ............................................................ 139
Figure 186: AAA-rated corporate bond yield curve ........................................................................................................ 139
Figure 187: AA+ rated corporate bond yield curve ......................................................................................................... 139
Figure 188: Change in AAA corporate bond and G-sec yields in FYTD (Apr’23-Feb’24) ................................................ 139
Figure 189: Change in AA+ corporate bond and G-sec bond yields in FYTD (Apr’23-Feb’24) ....................................... 139
Market Pulse
Figure 190: Corporate bond term premia between 10-year and 1-year yields .............................................................. 140
Figure 191: Movement in key commodity indices ........................................................................................................... 141
Figure 192: Movement in key commodity indices since 2020 ........................................................................................ 142
Figure 193: Returns of key hard commodities in 2022, 2023 and 2024 till date ........................................................... 143
Figure 194: Returns of key agricultural commodities in 2022, 2023 and 2024 till date ............................................... 144
Figure 195: Returns of key energy commodities in 2022, 2023 and 2024 till date ....................................................... 145
Figure 196: Movement in INR vs. major DM currencies in 2023 and 2024 .................................................................... 147
Figure 197: Movement in INR vs. major EM currencies in 2023 and 2024 .................................................................... 147
Figure 198: Annualized volatility of INR vs other developed and EM currencies ........................................................... 148
Figure 199: Change in INR vs other major currencies (As on February 29 th, 2024) ....................................................... 148
Figure 200: RBI forex reserves and USDINR ................................................................................................................... 149
Figure 201: Real and nominal effective exchange rates of INR ...................................................................................... 150
Figure 202: USDINR and forward premium .................................................................................................................... 151
Figure 203: Net inflows by FIIs in Indian equity and debt markets ............................................................................... 152
Figure 204: Net inflows by DIIs in Indian equity markets .............................................................................................. 153
Figure 205: Region-wise distribution of total registered investors- Long term trend .................................................... 158
Figure 206: State-wise distribution of total registered investors as of February 2024 .................................................. 160
Figure 207: Region-wise distribution of new investors registered each month ............................................................. 161
Figure 208: Region-wise distribution of new investors registered each financial year .................................................. 162
Figure 209: Number of new investors registered in top ten districts (in ‘000) ............................................................... 164
Figure 210: Trends in average daily turnover in NSE’s CM segment .............................................................................. 169
Figure 148: Trends in average daily turnover in NSE’s equity derivatives segment ....................................................... 170
Figure 212: Trends in average daily turnover in currency derivatives segment ............................................................. 171
Figure 213: Trends in average daily turnover in commodity derivatives segment ......................................................... 172
Figure 214: Trends in share of client participation in NSE’s CM segment (%) ............................................................... 181
Figure 215: Trends in client category-wise turnover in NSE’s CM segment ................................................................... 181
Figure 216: Trends in share of client participation in Equity Derivatives (Notional Turnover) at NSE (%) ..................... 183
Figure 217: Trends in client category-wise turnover in Equity derivatives (Notional Turnover) at NSE ........................ 183
Figure 218: Trends in share of client participation in Index Futures at NSE (%) ............................................................ 184
Figure 219: Trends in client category-wise turnover in Index Futures at NSE ............................................................... 185
Figure 220: Trends in share of client participation in Stock Futures at NSE (%) ............................................................ 186
Figure 221: Trends in client category-wise turnover in Stock Futures at NSE ............................................................... 186
Figure 222: Trends in share of client participation in Index Options (premium turnover) at NSE (%) ........................... 187
Figure 223: Trends in client category-wise turnover in Index Options (premium turnover) at NSE .............................. 188
Figure 224: Trends in share of client participation in Stock Options (Premium Turnover) at NSE (%) .......................... 189
Figure 225: Trends in client category-wise turnover in Stock Options (Premium Turnover) at NSE .............................. 189
Figure 226: Trends in share of client participation in Currency Derivatives (Notional Turnover) at NSE (%) ................ 190
Figure 227: Trends in client category-wise turnover in Currency Derivatives (Notional Turnover) at NSE .................... 191
Market Pulse
Figure 228: Trends in share of client participation in Currency Futures at NSE (%) ...................................................... 192
Figure 229: Trends in client category-wise turnover in Currency Futures at NSE .......................................................... 192
Figure 230: Trends in share of client participation in Currency Options (Premium Turnover) at NSE (%)..................... 193
Figure 231: Trends in client category-wise turnover in Currency Options (Premium Turnover) at NSE ........................ 194
Figure 232: Trends in share of client participation in Interest Rate Futures at NSE (%)................................................ 195
Figure 233: Trends in client category-wise turnover in Interest Rate Futures at NSE ................................................... 195
Figure 234: Trends in share of client participation in Commodity Derivatives (Notional Turnover) at NSE (%) ............ 197
Figure 235: Trends in client category-wise turnover in Commodity Derivatives (Notional Turnover) at NSE ................ 197
Figure 236: Trends in share of client participation in Commodity Futures at NSE (%) .................................................. 198
Figure 237: Trends in client category-wise turnover in Commodity Futures at NSE ...................................................... 198
Figure 238: Trends in share of client participation in Commodity Options (Premium Turnover) at NSE (%) ................ 199
Figure 239: Trends in client category-wise turnover in Commodity Options (Premium Turnover) at NSE .................... 199
Figure 240: Trends in share of different modes of trading in Capital Market segment at NSE (%) ................................ 201
Figure 241: Trends in share of different modes of trading in Equity Derivatives segment at NSE (%) .......................... 202
Figure 242: Trends in share of different modes of trading in Currency Derivatives segment at NSE (%) ...................... 203
Figure 243: Trends in share of different modes of trading in Interest Rate Derivatives segment at NSE (%) ............... 204
Figure 244: Trends in share of different modes of trading in Commodity Derivatives segment at NSE (%) .................. 205
Figure 245: Overall net inflows of individual investors in NSE’s CM segment in last eight fiscal years ......................... 206
Figure 246: Annual trend of net inflows of individual investors in NSE’s CM segment .................................................. 207
Figure 247: Monthly trends of active individual investors participation in NSE cash and equity derivative segments . 208
Figure 248: Annual trends of active individual investors participation in NSE cash and equity derivative segments ... 208
Figure 249: Monthly trend of active individual investors participation in currency derivative segments of NSE .......... 209
Figure 250: Annual trend of active individual investors participation in currency derivative segments of NSE ............ 209
Figure 251: Region-wise distribution of monthly individual investors’ turnover in the cash market ............................. 212
Figure 252: Region-wise distribution of individual investors traded in the cash market ............................................... 213
Figure 253: Region-wise share of individual investors’ turnover in cash market (%) .................................................... 214
Figure 254: Region-wise share of individual investors traded in cash market (%) ........................................................ 214
Figure 255: Top 10 states based on turnover of individual investors in the cash market .............................................. 214
Figure 256: Top 10 states based on individual investors traded in the cash market ..................................................... 215
Figure 257: Top 10 states share based on turnover of individual investors in the cash market .................................... 216
Figure 258: Top 10 states share based on number of individual investors traded in the cash market.......................... 216
Figure 259: Top 10 districts based on cash turnover of individual investors ................................................................. 217
Figure 260: Top 10 districts based on individual investors traded in the cash market .................................................. 217
Figure 261: Top 10 districts share based on individual turnover in the cash market ..................................................... 218
Figure 262: Top 10 districts share based on individual investors traded in the cash market ........................................ 218
Figure 263: Monthly trend of total MF schemes and average AUM ................................................................................ 222
Figure 264: Monthly trend of total investment through mutual funds ............................................................................ 222
Figure 265: Monthly trend of total investment through mutual funds ............................................................................ 223
Market Pulse
Figure 266: Share of overall mutual fund AUM across asset classes ............................................................................. 224
Figure 267: Category-wise AUM split .............................................................................................................................. 225
Figure 268: Category-wise share in MF AUM .................................................................................................................. 225
Figure 269: State-wise distribution of Equity schemes AUM in Feb’23 and Feb’24 ...................................................... 226
Figure 270: Monthly trend of total investment through new schemes ........................................................................... 227
Figure 271: Annual trend of fund mobilization through new schemes* ......................................................................... 227
Figure 272: Domestic market cap of top ranked exchanges** ...................................................................................... 231
Figure 273: Number of trades in Cash market of top ten exchanges** .......................................................................... 231
Market Pulse
List of Tables
Table 1: Ownership trend across promoters and non-promoters in the NSE-listed universe............................................ 8
Table 2: Ownership trend across non-promoter shareholders by total market cap in the NSE-listed universe ................ 8
Table 3: NSE-listed universe: Ownership trend across key stakeholders by total market cap over last three years ...... 10
Table 4: NSE-listed universe: Ownership trend across key stakeholders by floating stock over last three years ........... 11
Table 5: Shareholding of DMFs across active and passive funds in the NSE listed companies........................................ 18
Table 6: Sector allocation of the NSE-listed universe for key stakeholders (December 2023) ....................................... 22
Table 7: Nifty 50: Ownership trend across key stakeholders by total market cap over the last three years ................... 25
Table 8: Nifty 50: Ownership trend across key stakeholders by free float market cap over last the three years ............ 26
Table 9: Sector allocation of the Nifty 50 universe for key stakeholders (December 2023) ............................................ 32
Table 10: Nifty 500: Ownership trend across key stakeholders by total market cap over last the three years .............. 37
Table 11: Nifty 500: Ownership trend across key stakeholders by free float market cap over the last three years ....... 38
Table 12: Sector allocation of the Nifty 500 universe for key stakeholders (December 2023) ....................................... 43
Table 13: Market cap decile-wise share of individuals' portfolio in NSE listed companies .............................................. 50
Table 16: Distribution of total value held by individual investors across market capitalization deciles .......................... 51
Table 14: Market cap decile-wise share of DMFs’ portfolio in NSE listed companies ...................................................... 51
Table 16: Distribution of total value held by DMFs across market capitalization deciles ................................................ 51
Table 15: Market cap decile-wise share of FPIs’ portfolio in NSE listed companies ........................................................ 52
Table 16: Distribution of total value held by FPIs across market capitalization deciles .................................................. 52
Table 16: Market cap decile-wise share in total market capitalization of NSE listed companies .................................... 52
Table 16: Market capitalization of NSE listed companies distributed across deciles ...................................................... 53
Table 21: Quarterly GDP growth trend (2011-12=100) (%YoY)....................................................................................... 59
Table 22: Annual real GDP and GVA growth trend (% YoY) .............................................................................................. 63
Table 23: Revisions in real GDP and GVA growth for the last three years ........................................................................ 64
Table 24: Revisions in real GDP and GVA growth for the first six quarters ....................................................................... 64
Table 25: India industrial production for January 2024 (%YoY) ...................................................................................... 67
Table 26: Consumer price inflation in February 2024 (%YoY).......................................................................................... 72
Table 27: Wholesale price inflation for February 2024 (%YoY) ........................................................................................ 74
Table 28: India monthly trade balance for February 2024 ............................................................................................... 77
Table 29: A quick glance at Centre’s fiscal balances ........................................................................................................ 82
Table 30: A snapshot of government finances for Provisional estimates for Jan’24 ....................................................... 84
Table 31: A snapshot of Government finances in 2024-25 .............................................................................................. 85
Table 32: Performance across equity, fixed income, currency, and commodity markets (As on Feb 29 th, 2024) ......... 103
Table 33: Performance across global asset classes (As on February 29 th, 2024) .......................................................... 104
Table 34: Performance across NSE equity indices (As on February 29 th, 2024) ............................................................ 105
Table 35: Performance across NSE sector indices based on Price Return Index (As on February 29 th, 2024) ............. 107
Table 36: Top five Nifty 50 Index gainers in February 2024 ........................................................................................... 113
Table 37: Top five Nifty 50 Index losers in February 2024 ............................................................................................. 114
Market Pulse
Table 38: Earnings growth and forward-looking multiples for Nifty 50 Index ............................................................... 115
Table 39: Performance of key Nifty debt indices (As of February 29 th, 2024) ................................................................ 133
Table 40: Annual performance across commodities ...................................................................................................... 146
Table 41: Resource mobilization through equity and debt in the last seven months ..................................................... 154
Table 42: Resource mobilization through equity and debts during last three years (Year-wise) ................................... 155
Table 43: NSE Mainboard during February 2024 ............................................................................................................ 156
Table 44: NSE Emerge platform during February 2024 .................................................................................................. 156
Table 45: Top 10 State-wise issuances on NSE Emerge platform as of February 2024 ................................................ 157
Table 46: Region-wise distribution of total registered investors at end of each fiscal year (in lakhs) ........................... 158
Table 47: State-wise distribution of total registered investors at end of each fiscal year ............................................. 159
Table 48: Number of new investors registered in top 25 states (in ‘000) ...................................................................... 163
Table 49: Number of new investors registered in top ten districts (in ‘000) .................................................................. 164
Table 50: Total turnover across segments in the last six months (Sep’23–Feb’24) ...................................................... 166
Table 51: Total turnover across segments in the last five years (FY20 to FY24TD) ....................................................... 166
Table 52: Average daily turnover across segments in the last six months (Sep’23–Feb’24)......................................... 167
Table 53: Average daily turnover across segments (FY17 to FY24TD) .......................................................................... 168
Table 54: Average daily turnover in NSE’s CM Segment ................................................................................................. 169
Table 55: Average daily turnover in NSE’s equity derivatives segment .......................................................................... 170
Table 56: Average daily turnover in currency derivatives segment ................................................................................ 171
Table 57: Average daily turnover in Interest rate derivatives ......................................................................................... 172
Table 58: Average daily turnover in commodities derivatives ........................................................................................ 172
Table 59: Category-wise flow in secondary markets in last three months (Dec’23-Feb’24) ......................................... 173
Table 60: Category-wise flow in secondary market during FY24TD and FY23............................................................... 173
Table 61: Category-wise turnover and open interest (OI) in equity derivatives in the last two months ........................ 174
Table 62: Category-wise turnover and open interest (OI) in equity derivatives in FY24TD and FY23 ........................... 175
Table 63: Category-wise turnover in currency derivatives in last three months (Dec’23-Feb’24) ................................ 176
Table 64: Category-wise trading turnover in currency derivatives during FY24TD and FY23 ........................................ 177
Table 65: Category-wise trading turnover in interest rate derivatives in last three months (Dec’23-Feb’24) .............. 177
Table 66: Category-wise trading turnover in interest rate derivatives during FY24TD and FY23 ................................. 178
Table 67: Category-wise trading turnover in commodity derivatives in last three months (Dec’23-Feb’24) ................ 178
Table 68: Category-wise turnover in commodity derivatives during FY24TD and FY23 ................................................ 179
Table 69: Share of client participation in NSE’s CM segment (%) .................................................................................. 180
Table 70: Share of client participation in Equity Derivatives segment of NSE (%) ......................................................... 182
Table 71: Share of client participation in Index Futures of NSE (%) ............................................................................... 184
Table 72: Share of client participation in Stock Futures of NSE (%) ............................................................................... 185
Table 73: Share of client participation in Index Options of NSE (%) .............................................................................. 187
Table 74: Share of client participation in Stock Options of NSE (%) ............................................................................... 188
Table 75: Share of client participation in Currency Derivatives segment of NSE (%) ..................................................... 190
Market Pulse
Table 76: Share of client participation in Currency Futures of NSE (%) ......................................................................... 191
Table 77: Share of client participation in Currency Options of NSE (%) ......................................................................... 193
Table 78: Share of client participation in Interest Rate Futures of NSE (%)................................................................... 194
Table 79: Share of client participation in Commodity derivatives segment of NSE (%) ................................................. 196
Table 80: Share of different modes of trading in Capital Market segment of NSE (%) ................................................... 200
Table 81: Share of different modes of trading in Equity Derivatives segment of NSE (%) ............................................. 201
Table 82: Share of different modes of trading in Currency Derivatives segment of NSE (%) ......................................... 202
Table 83: Share of different modes of trading in Interest Rate Derivatives segment of NSE (%) .................................. 203
Table 84: Share of different modes of trading in Commodity Derivatives segment of NSE (%) ..................................... 204
Table 85: Distribution of turnover by range in cash market for all investors .................................................................. 210
Table 86: Distribution of turnover by range in equity options market for all investors .................................................. 211
Table 87: Distribution of turnover by range in equity futures market for all investors ................................................... 211
Table 88: Top-10 symbols based on total turnover of NSE CM segment in February 2024 .......................................... 219
Table 89: Top-10 symbols based on total turnover of stock futures in February 2024 ................................................. 219
Table 90: Top-10 symbols based on total premium turnover of stock options in February 2024 ................................. 220
Table 91: Segment-wise record turnover till February 29th, 2024 ................................................................................. 221
Table 92: Monthly trend of average AUM of mutual funds across categories ................................................................ 224
Table 93: No. of trades (cr) in the top 10 exchanges in cash market* ............................................................................ 231
Table 94: Global market share of trades in the top 10 exchanges in cash market* ....................................................... 231
Table 95: No. of contracts traded (cr) in the top 10 exchanges in equity derivatives segment* .................................... 232
Table 96: Global market share of contracts traded in the top 10 exchanges in equity derivatives segment* ............... 232
Table 97: Number of contracts traded (cr) traded in Stock futures of top-ranked exchanges* ..................................... 232
Table 98: Number of contracts traded (cr) traded in Stock options of top-ranked exchanges* .................................... 232
Table 99: Number of contracts traded (cr) in Index futures of top ranked exchanges* ................................................. 232
Table 100: Number of contracts traded (cr) in Index options of top ranked exchanges* .............................................. 232
Table 101: Number of contracts traded (cr) in Currency futures of top ranked exchanges* ......................................... 233
Table 102: Number of contracts traded (cr) in Currency options of top ranked exchanges* ......................................... 233
Market Pulse
Executive Summary
Indian investors cross the 9-crore mark
Earlier this year, the number of unique investors at the National Stock Exchange crossed the 9-crore mark, with the
total number of accounts at 16.9 crore. It took five months to add the last crore accounts since October 2023. As we
have shown in the Pulse over the past year, the number of investors has seen a steady increase since the pandemic,
tripling in the last five years on easier, faster and safer access to the markets. The trends of rapid digitization and
market performance (positive for the past eight years) have supported this, with the widening geographical spread
showing rising investor awareness. While investors have traditionally been from the Western region of the country, over
42% of the new investors since October are from North India. FY23 was the first year when investors from this part of
country topped the charts by count, and that lead has widened in this fiscal. Over 3.1 crore of the 9 crore investors in
India hail from the North, vs. 2.8 crore from West India. Other large states with rapid increase in the investor base since
FY20 are Bihar (5.6x), Madhya Pradesh (4.4x) and Uttar Pradesh (4.2x). States in the North-East (Counted in East India)
have seen even higher increases.
Trading by investors continued on more or less an even keel across major segments in a shorter February. Turnover in
the cash segment dipped 1.3% in February, while derivatives saw a modest rise in futures (50bps) and index options
(30bps). The number of active investors in the markets, however, continued to rise, crossing in the 1.5-crore mark in
February (48 lakh in derivatives). The extreme skew in the markets continued as well, with over 90% of investors
trading below 10 lakh in the month, contributing to 3% of the turnover. For the options market, 75% of investors
contributed to 2% of the turnover in the month. Accounting for the fewer trading days, the average daily turnover (ADT)
continues to rise, reaching Rs117,000 crore for the equities (vs Rs113,000 crore in Jan’24); the ongoing fiscal year has
seen ADT rise to Rs80,000 crore vs Rs53,000 crore in FY23.
Inflows to the markets remained steady in February, with FIIs back with a vengeance this month, after the sell-off
earlier this year. Flows in March have totalled US$4.6bn (till March 22nd), adding up to US$1.7bn for the calendar, and
a substantial US$25.6bn for this fiscal—the second highest ever—after FY21’s US$37bn. DIIs have remained steady
for the year, while retail investors have caught in the 4th quarter of the fiscal.
Across products in the cash market, ETFs comprise a small but rising component with steadily rising activity; daily
trading this (calendar) year has crossed Rs1000 crore and is significantly higher than the Rs 486 crore seen in FY23.
This ties in with the theme of rising passive investment activity in the market. Nine of the top 10 traded ETF benchmarks
are from NSE. The sustained trend in trading activity at NSE, has vaulted it towards the top of the trading leaderboard
across exchanges worldwide, as trading in the traditional leaders—the two Chinese exchanges (Shenzhen and
Shanghai)—has dipped significantly.
Our quarterly view on market ownership provides an authoritative compilation of the trends since the data was first
available in 2000. The data for December 2023 shows an increase in promoter share, partially driven by PSU
performance. Foreign ownership of the market has dropped for the third quarter in a row to a 11-year low of 18.2%,
despite strong inflows, dragged by the underperformance of Financials, and to some extent substituted by other non-
promoter ownership. While individual investors maintained share at 9.7%, sustained SIP inflows saw Domestic Mutual
Funds (DMFs) share marginally to 8.8% of market, with nearly fifth from passive investments (1.7%). The report also
shows the decile-wise distribution of the FPI, DII and Individual investors’ portfolios in the market. It is interesting to
note the three portfolios differ in their allocation vis-à-vis the market benchmarks.
Back to the markets, Global equities went up further in February, with the MSCI World Index up 4.1% in February,
while emerging markets outperformed, with the MSCI EM Index ending the month 4.6% higher. Global debt remained
under pressure, with the US 10-year yield surging by 44bps to 4.3%. Indian equities edged marginally higher, with the
Nifty 50 Index ending the month with a modest gain of 1.2% but underperformed the global counterparts. The rally in
small- and mid-caps, however, came to a half last month, with the Nifty Midcap 100 and Nifty Smallcap 250 Indices
falling by 0.5% and 0.7% in February and further by 5% and 8.3% in March thus far respectively. Indian debt traded in
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Market Pulse
a range-bound manner, aided by a higher-than-expected pace of fiscal consolidation and robust foreign capital inflows.
More detail in our Market Roundup.
In the primary markets, capital raising through both equity and debt resumed in February (Rs20,127 crore and
Rs126,182 crore respectively) after a weak January. Capital raised this year through has been over Rs 12 lakh crore
(Rs 10.2 lakh crore through debt and Rs 1.9 lakh crore through equity).
Central banks across the world took momentous steps last month; the Bank of Japan reverted to ‘normal’ monetary
policy, with the first rate hike since 2007, and dispensing with Yield Curve Control and ETF purchases. The Fed stayed
put for now but indicated three cuts later this year. Policy rate decisions across the world have been divergent since
the pandemic, reflecting a preponderance of localized inflation and growth over global macroeconomic trends. In
Japan, for instance, inflation is finally at 2% levels, while in Europe, Germany and UK are both in recession, as per their
latest data, and the ECB might oblige with the first cut in summer. In India, the RBI has stayed put at 6.5% on the repo
since May’22, and the call on first easing would depend on both the recent inflation trajectory, and the stronger-than-
expected economic recovery. Our macro section has the details.
From a macro perspective, 3QFY24 saw India's GDP growth at 8.4%, outperforming expectations and pushing the full-
year growth forecast to 7.6%, a 30 basis points increase from the Central Statistics Office’s initial estimate. A lacklustre
IIP growth (-3.8% yoy), and weak eight core growth in January were matched by resurgent business confidence, with
the Services PMI remaining above 60 for two consecutive months, signalling sustained optimism in manufacturing and
services sectors. Inflation rates in February stood relatively stable at 5.1%, with a slight uptick in Food and Beverages
inflation being offset by a general deceleration in other areas. An interesting emerging theme in our trade is the
composition of merchandise and services, and the narrowing gap between them. Over the past decade, and especially
since the pandemic, the surplus in Services is catching up with the deficit in Merchandise. In January and February, for
instance, the gap was less than US$2bn.
Our Insights section this month has three papers summaries from the CBS team at IIM Ahmedabad. The first of these
three looks at how reluctance to use algorithms in financial decision-making, algorithm aversion, can be reduced by
providing feedback to individuals and comparing individual’s performance with an algorithm. This led to individuals
becoming less overconfident, and hence reduction in their algorithm aversion. The second paper measures the effect
of COVID-19 vaccination on stock markets and mortality rates. Examining their effects, the study finds that
immunization positively correlates with a stable stock market and a decrease in the death rate. The third paper studies
the buying behaviour of retail investors who use the 1/N heuristic to equally split their same-day purchases of multiple
assets, which is called Naïve Buying Diversification (NBD). The authors contrast it with Naïve Portfolio Diversification
and find that people engaging in NBD far more commonly than NPD.
The 5th SEBI-NISM Conference was held at NSE and NISM earlier this month. Panel discussions at NSE were well-
attended and covered a broad range of relevant topics ranging from new ideas in finance, sustainable finance,
infrastructure investment to investor education. Analysts from the EPR team also presented a paper exploring the
linkages between ESG scores and institutional ownership of large-cap Indian companies earlier this month.
Towards the end, it makes sense to track the evolving world of AI again, where blistering growth continues with the
unveiling of the Blackwell chip last week, the first to provide petaflop performance. The growth in computational power
at 1000x in a decade leaves Moore’s Law in the dust and promises an entirely new world during our lifetimes. And we
are yet to see a conventional application of the multiple attempts at quantum computing across the world. Our lives,
growth and the future of our planet depends on how such technology is utilized. On that note, we present the March
edition of the Market Pulse. As always, we look forward to your comments and suggestions.
Tirthankar Patnaik
Chief Economist
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Market Pulse
NSE at a glance
NSE’s positioning and reach
NSE’s global positioning Domestic market share Reach
Largest multi-asset class Rolling 3M share (%)** 1303 Trading members
1 exchange 0.0 40.0 80.0 120.0
99.85%+ Pin codes covered
Third largest equity exchange EQ Cash 92.2 Unique registered
3 (No. of trades, 12% share in
EQ Futures 99.90
9 Crore
PANs
2023*)
Global passive AUM
Largest derivatives exchange EQ Options* 94.7 US$77bn
tracking Nifty indices*
1 (No. of contracts traded, 74% FX Futures 79.0
share in eq. F&O in 2023*) Market cap (As of
FX Options* 99.7 US$4.6trn
Feb’24)
6 Market capitalization*
* Based on premium turnover * Includes domestic and global AUM. As of
* Source: WFE ** As of February 29th, 2024 February 29th, 2024
NSE’s contribution to the economy

Catalyst for capital formation Dedicated MSME platform Market capitalization
Rs 5.9 lakh crore Rs lakh cr NSE market cap
500 150
Market cap to GDP (%, rhs*)
Rs 9,315 Cr 400
2417 300 100
Total equity 200 50
capital Total 100
435
raised capital 0 0
Companies 138
between
FY18
FY19
FY20
FY15
FY16
FY17
FY21
FY22
FY23
raised
FY24TD
FY22- listed* Companies Companies
FY24TD listed * migrated to
main board * Market cap to GDP is based on 3M average market
cap and nominal GDP for FY24. Data for FY24TD is
as of February 29th, 2024.
* FY24TD is as of February 29th, 2024 * As of February 29th, 2024
Investor growth
Unique investor base Active investors* New investor registrations
lakhs lakhs
CM Segment Lakh East India North India
350
1,000 294 South India West India
900 FO Segment
900 300 Total
800 727 250 250
700 193.0
594 200 200 171.3
600
150 132.6
500 150
400 91
400 310 100 89.8
275 100
300 50
200 38.5
0 50
100
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
- 0
FY24TD*
FY19
FY20
FY21
FY22
FY23
FY20 FY21 FY22 FY23 FY24TD*

* Active investors here are defined as investors who have
traded at least once in the year. Date for FY24 is as of for Top five states (UP, MH, GJ, WB, RJ) accounted for ~49%
the period Apr’23-Feb’24. of new investor registrations in FY24TD (Apr’23-Feb’24).
NSE overtook Shenzhen Stock Exchange to reach the first spot globally in cash market in terms of number of
trades in Feb’24.
NSE continues to have global dominance in Equity Index Options segment with a 98% global share in terms of
contracts traded.
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Market Pulse
Key macro charts

Growth outlook robust
Annual GDP growth Industrial activity shows mixed picture PMI in the expansion zone
% %YoY
10.0 7.3
IIP Eight core Manufacturing PMI Services PMI
7.2 7.0 20
8.0
6.0 60.6
4.0 15 60
2.0 56.9
10
- 3.6
(2.0) 40
5
(4.0)
3.8
(6.0) 0
(8.0) 20
-5
FY24RBIe
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY23
FY24FAE
-10 0
Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Feb-16 Feb-18 Feb-20 Feb-22 Feb-24
Inflation easing; policy to stay on hold for now

Core inflation at sub-4% Call money above Repo Liquidity conditions tightening
% CPI Core inflation % Rs lakh cr Figure >0:
10 Repo Rate Call Money Rate
8.0 4 deficit
2 liquidity
8
6.0 0
6 -2
5.1 -4 Figure < 0 :
4.0
4 -6 surplus
3.3 -8 liquidty
2 2.0 -10
Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24
External situation comfortable; rupee stable

Overall BOP Forex reserves Rupee volatility contained
US$ bn FPI US$ bn FX reserves (US$mn) # of months
FDI INR BZ Real SA Rand
Invisibles Import cover ratio (months, RHS) 160
700 21
300 Merchandise Trade 619 CNY Rouble
Overall BOP 600
200 140
16
100 500
120
10.9
0 400
11
100
-100 300
-200 200 6 80
May-23
Nov-23
Jul-23
Sep-23
Mar-23
Mar-24
Jan-23
Jan-24
Feb-14
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
-300
FY20 FY21 FY22 FY23 H1FY24
Fiscal prudence but with higher capex

Fiscal consolidation underway GST collections robust Share of capex rising
Fiscal deficit trend (% of GDP) Rs. lakh cr %
10.0 FY22 FY23 FY24 Capital Expenditure Revenue Expenditure
2.1 100
8.0 1.7 21.5
5.9 80
6.0 5.8
5.1 1.6
60
4.0
40 78.5
2.0 1.1
20
0.0
0
0.6
FY22
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY23A
FY24BE
FY25BE
FY24RE
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Apr Jun Aug Oct Dec Feb
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Market Pulse
Key market charts

Performance across asset classes
Equity Fixed income Currency
Returns of key global equity indices Movement in 10-year yields
USDINR 1Y fwd premium (RHS)
Indices 1M 6M 12M % 10Y G-sec 10Y SDL 84.5 3.0%
Nifty 50 1.2 14.2 27.0 8.5
10Y AAA PSU
Nifty 50 USD 1.3 14.0 25.6 2.5%
8.0 83.0
MSCI World 4.1 11.8 22.9
2.0%
MSCI EM 4.6 4.1 5.9 7.5
81.5
S&P 500 5.2 13.1 28.4 1.5%
7.0
Euro Stoxx 50 4.9 13.5 15.1
FTSE 100 -0.0 2.6 -3.1 6.5 80.0 1.0%
* As on February 29th, 2024 Feb-23 May-23 Aug-23 Nov-23 Feb-24 Feb-23 Jun-23 Oct-23 Feb-24
Segment-wise turnover trend *

ADT in NSE’s CM segment ADT in Equity options (premium) ADT in Equity futures
Rs '000 Rs '000 Rs '000
Index Options Stock Options Index Futures Stock Futures
Cr Cr Cr
80 60 6 125
50
60 100
40
75 101
40 30 56
50
20 20
14 80 10 25
0 29
FY08 FY11 FY14 FY17 FY20 FY23 - -
FY16 FY18 FY20 FY22 FY24 FY16 FY18 FY20 FY22 FY24
* FY24 is as of February 29th, 2024.
Market activity
Category-wise gross turnover and share in FY24* Average open interest in February 2024
CM Equity options# Equity futures Equity options Equity futures
Client Client
category Value (Rs Share Value (Rs Share Value (Rs Share category Value Contracts Value Contracts
‘000 Cr) (%) ‘000 Cr) (%) ‘000 Cr) (%) (Rs Cr) (‘000) (Rs Cr) (‘000)
Corporates 2,069 6% 758 3% 4,828 8% Corporates 1,73,255 1,300 45,840 550
FIs 5,274 14% 2,336 8% 12,661 21% FIs 163 1 5 0
DIIs 3,997 11% 22 0% 4,524 8% DIIs 507 5 107 1
Individuals 13,061 36% 9,643 35% 11,677 20% Individuals 5,83,373 7,903 96,646 1,177
Prop 10,300 28% 13,912 50% 21,020 36% Prop 3,55,366 3,993 48,855 598
Others 1,791 5% 1,215 4% 4,475 8% Others 3,34,278 3,399 1,93,296 2,307
*FY24 data is as of February 2024. # Based on premium turnover Note: Notional value is presented here
Net inflows into Indian equities

FIIs DIIs Individual investors ^
US$ bn 36.2 3
Rs lakh cr
2.6
Rs '000 cr
40
Thousands
200
30 20.8 21.0
Thousands
2 1.5 150
20 10.7 100 49 56
10 2.3 2.1 50
1
0 -
-10 1.2 0.9 0 -50
5.1
-20 -100
18.5
FY20
FY15
FY16
FY17
FY18
FY19
FY21
FY22
FY23
FY24TD*
-30 -1
FY18
FY20
FY15
FY16
FY17
FY19
FY21
FY22
FY23
FY24TD*
-2
FY15 FY18 FY21 FY24TD* * As of February 29th, 2024
* As of February 29th, 2024 ^ NSE’s CM segment only (Secondary market)
* As of February 29 , 2024
th
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Market Pulse
Story of the month

Who owns India Inc.? FPI share drops further in Q3, DMF share at record high
In this edition of our quarterly report “India Inc. Ownership Tracker”, 1 we extend our analysis of ownership trends and
patterns in NSE companies to include the data available for the quarter ending December’23. We note: 1) An increase
in promoter ownership for the third quarter in a row to 50.7% in NSE listed companies, primarily led by a rise in
Government share; 2) A drop in FPI 2 (foreign portfolio investors) ownership for the third quarter in a row to more than
11-year low of 18.2% despite strong inflows, weighed down by relative underperformance of the heavily FPI-owned
Financials sector. Excluding Financials, FPI holding inched up by 10bps QoQ; 3) An increase in DMF (domestic mutual
funds) share to fresh record high level of 8.8% (Active: 7.1%, Passive: 1.7%), aided by strong SIP inflows; 4) A steady
individual investors’ holdings at 9.7% in the listed universe; 5) FPIs continued to play the India story via Financials
with an outsized but incrementally tapered OW3 bet on the sector, remained negative on India’s consumption story
with a negatively biased neutral and a strong UW stance on Consumer Discretionary and Consumer Staples
respectively and turned incrementally less bearish on Industrials; 6) DMFs broadly maintained their sector positioning
with a reduced but strong OW position on bigger Financial companies even as they retained a cautious view on smaller
companies in the sector, an UW position on Consumer Staples and commodity sectors viz., Energy and Materials and
an OW stance on Healthcare and Smaller Consumer Discretionary companies; 7) A drop in exposure of Institutional
and individual investors to Nifty 50 companies for the third quarter in a row even as they continue to have a
disproportionate share of their portfolio to such companies. For instance, companies in the top decile by market cap
(~200) accounted for 65%, 80%, and 90% of the individuals’, DMFs’ and FPIs’ holdings respectively.
• Promoter share rose for the third consecutive quarter: Total promoter Who owns India Inc.? NSE-listed in Dec’23
ownership in the NSE-listed companies and Nifty 500 Index increased Others,
Individual Pvt.
for the third quarter in a row by 37bps and 29bps QoQ to 50.7% and investors, 9.7 6.5
promoters,
50.1% respectively, while their share in the Nifty 50 also went up by 41.0
Banks, FIs &
23bps QoQ to 42% after remaining steady in the previous quarter. The Insurance, 5.6
rise was once again primarily driven by an increase in Government
share, partly offset by a drop in Indian private as well as foreign FPIs,
promoter holdings. 18.2
DMFs, Govt.,
• Government ownership rose further on PSU outperformance: 8.8 10.2
Government ownership—promoter as well as non-promoter—in the
FPI ownership in NSE-listed companies
listed companies, Nifty 500 and Nifty 50 Index increased sharply by
% FPI share in NSE-listed universe
78bps, 87bps and 23bps QoQ to a 24-quarter high of 10.2%, 26-quarter 30 FPI share ex-Financials
high of 10.7% and 15-quarter high of 6.3% respectively. This was partly
attributed to strong relative outperformance of public sector enterprises 20
in the quarter gone by. For instance, while the NIFTY 50 Index generated
10
a 10.7% return in the December quarter, the NIFTY PSE Index
generated 31.1% return over the same period. 0
Dec-17
Dec-01
Dec-03
Dec-05
Dec-07
Dec-09
Dec-11
Dec-13
Dec-15
Dec-19
Dec-21
Dec-23
• FPI ownership declined for the third consecutive quarter:

Notwithstanding strong foreign capital outflows, FPI ownership in the
Source: CMIE Prowess, NSE EPR.
NSE-listed universe and Nifty 500 companies fell by 20bps and 10bps
QoQ to 18.2% and 19.4% respectively, while share in the Nifty 50
universe remained largely unchanged at 19.4% in the December quarter.
A part of this drop is attributed to relative underperformance of
1
The “India Inc. Ownership Tracker” report examines ownership trends and patterns in Indian companies listed on the NSE since 2001.
2
FII ownership includes ownership through depository receipts held by custodians.
3
Overweight (OW), neutral (N) or underweight (UW) stance on any sector is with respect to the sector’s weight in the Index. An OW/UW position on a sector implies more
than 100bps higher/lower allocation to the sector than its weight in the Index. A ‘N’ position on a sector implies an allocation within +/- 100bps of the sector’s weight.
6/239
Market Pulse
Financials during the quarter, which FPIs have an outsized exposure to. DMF ownership in NSE-listed companies
In fact, excluding Financials, FPI share in the listed space actually Rs cr SIP inflows %
increased by 10bps QoQ to 12% in the December quarter. 60,000 23
DMF share in NSE floating
50,000
stock 18
FPIs continued to play the India story via Financials with an outsized but 40,000
incrementally tapered OW bet on the sector, remained negative on 30,000 13
India’s consumption story with a negatively biased neutral and a strong 20,000
8
UW stance on Consumer Discretionary and Consumer Staples 10,000
0 3
respectively, turned incrementally less bearish on Industrials and
Sep-18
Sep-21
Mar-20
Mar-23
Jun-19
Jun-22
Dec-17
Dec-20
Dec-23
remained negative on Materials amid global slowdown.
• DMFs share rose to fresh all-time high level: DMF share in the NSE
FPI and DMF portfolio OW/UW in Nifty 500
listed universe, Nifty 500 and Nifty 50 increased by 7bps, 12bps and vs. the index (December 2023)
11bps QoQ to fresh all-time highs of 8.8%, 9.3% and 10.2% respectively bps
-168
in the December quarter. Actively managed funds comprise 7.1% of the Cons. Staples -207
28
ownership in the listed universe, while the rest 1.7% is held by passively Energy -150 FPIs
managed funds4. This is in line with robust net investments by DMFs Materials -243 -86 DMFs
15
during this period, supported by a steady rise in indirect individual IT -74
49
participation via the SIP route. Realty 5
Utilities 38
12
DMFs broadly maintained their sector positioning with a reduced but Financials 473
22
strong OW position on bigger financial companies even as they retained Industrials -165
75
a cautious view on smaller companies in the sector, an UW position on Comm Svcs. 45
78
Consumer Staples and commodity sectors viz., Energy and Materials and Cons. Disc. -48
153
an OW stance on Healthcare and Smaller Consumer Discretionary Healthcare -40
160
companies.
-400 -200 0 200 400 600
• Individual investors’ share remained broadly unchanged: Individual New investor account additions
investors’ holding in the NSE listed companies remained largely crore CDSL
4
unchanged at 9.7% in the December quarter, while the Nifty 50 and Nifty NSDL
x 10
3
500 indices saw a 11bps and 7bps QoQ drop in individuals’ share to 8.2%
2
and 8.7% respectively. This corroborates with a significant moderation
1
in net investments by individual investors during this period.
0
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24TD
• Ownership concentration: The share of Nifty 50 companies in total
institutional investments fell for the third quarter in a row by 130bps QoQ
to a 16-year low of 63.2% in the December quarter, a result of the
Decile-wise portfolio share
combination of higher allocation to mid- and small-cap companies and
Total
relative outperformance of these companies. Individuals also saw the Deciles FPIs DMFs Individuals mkt
cap
share of these companies in their overall portfolio falling to a 23-quarter
1 89.5 80.0 65.1 78.9
low of 40.4%. That said, large companies still contribute to a
2 6.9 13.3 14.1 11.2
disproportionate amount to both individual and institutional portfolios, 3 2.3 4.3 8.6 4.8
with the top 200 companies by market cap contributing to 65% of 4 0.9 1.8 4.9 2.4
individuals’ holdings and 90% of institutional holdings. We also compare 5 0.3 0.5 3.1 1.3
the depth of institutional ownership with its width in the market. FPIs 6 0.1 0.1 2.0 0.7
expanded the number of companies held in the December quarter, even 7 0.0 0.0 1.1 0.4
as those with more than a 5% FPI share did not increase meaningfully. 8 0.0 0.0 0.6 0.2
9 0.0 0.0 0.3 0.1
In line with FPIs, DMFs also expanded their investment pool, but with a
10 0.0 0.0 0.1 0.0
commensurate increase in the number of companies where DMFs own
Source: CMIE Prowess, AMFI, SEBI, NSE EPR.
more than 5%.
4
Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index. Active funds are those which involve active investment
decisions on the part of the fund manager.
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Market Pulse
Annual India Inc. ownership trends

Table 1: Ownership trend across promoters and non-promoters in the NSE-listed universe
Promoters (%) Non-promoters (%) Market cap
Private Indian Total Non- Total non- (Rs lakh
Government Foreign Institutional crore) *
promoters promoters Institutional promoters
FY07 30.9 15.5 7.7 54.1 28.6 17.3 45.9 34
FY08 31.0 19.0 6.5 56.6 27.1 16.3 43.4 49
FY09 26.4 23.0 8.2 57.6 25.7 16.8 42.4 29
FY10 26.5 22.3 7.6 56.3 27.5 16.2 43.7 60
FY11 26.6 22.1 7.2 55.9 28.2 15.9 44.1 67
FY12 27.3 19.8 8.0 55.1 28.7 16.2 44.9 61
FY13 28.4 16.9 7.5 52.8 31.2 15.9 47.2 63
FY14 29.4 13.9 8.4 51.7 32.3 15.9 48.3 73
FY15 29.6 11.9 9.5 51.0 32.4 16.5 49.0 100
FY16 31.0 10.1 9.3 50.4 31.9 17.7 49.6 95
FY17 30.4 10.7 8.9 50.1 32.0 18.0 49.9 121
FY18 31.3 9.7 9.4 50.4 32.0 17.6 49.6 142
FY19 31.5 8.7 9.2 49.4 34.0 16.5 50.6 150
FY20 33.3 6.6 11.1 50.9 34.6 14.5 49.1 112
FY21 34.7 5.9 9.4 50.0 35.0 15.0 50.0 203
FY22 36.3 5.7 8.7 50.7 32.9 16.3 49.3 261
FY23 33.2 7.9 8.8 49.9 36.2 13.9 50.1 254
Jun-23 33.4 8.0 8.7 50.1 35.9 14.0 49.9 291
Sep-23 33.1 8.9 8.3 50.4 35.2 14.4 49.6 315
Dec-23 33.1 9.7 7.9 50.7 34.8 14.4 49.3 360
Source: CMIE Prowess, NSE EPR. Note: Ownership across promoters and non-promoters are based on total market cap and add up to 100. *Market cap is for all companies
whose ownership data was available for the quarter.
Table 2: Ownership trend across non-promoter shareholders by total market cap in the NSE-listed universe
Non-promoters (%) ^
Market
Institutional Non-institutional
cap
Banks, FIs Non- Other (Rs lakh
Domestic Other Ind.
& FPIs* Total promoter non-inst. Total Total crore) #
MFs inst. investors
Insurance corporate **
FY07 3.8 5.4 19.2 0.3 28.6 4.2 10.1 3.0 17.3 45.9 34
FY08 3.8 5.4 17.5 0.4 27.1 4.3 9.1 2.9 16.3 43.4 49
FY09 3.8 6.7 14.9 0.3 25.7 4.5 8.7 3.6 16.8 42.4 29
FY10 3.9 6.9 16.4 0.3 27.5 4.5 8.5 3.3 16.2 43.7 60
FY11 3.6 6.9 17.5 0.3 28.2 4.5 8.2 3.2 15.9 44.1 67
FY12 3.6 7.2 17.7 0.2 28.7 4.4 8.5 3.2 16.2 44.9 61
FY13 3.5 6.9 20.7 0.1 31.2 4.3 8.0 3.6 15.9 47.2 63
FY14 3.4 6.8 22.1 0.1 32.3 4.0 8.0 4.0 15.9 48.3 73
FY15 3.9 5.9 22.0 0.6 32.4 4.2 8.7 3.7 16.5 49.0 100
FY16 4.4 6.4 20.8 0.3 31.9 5.8 9.1 2.8 17.7 49.6 95
FY17 4.9 6.2 20.6 0.2 32.0 5.8 9.3 2.9 18.0 49.9 121
FY18 6.1 5.6 20.1 0.3 32.0 5.6 9.0 3.0 17.6 49.6 142
FY19 7.2 5.5 21.0 0.4 34.0 5.0 8.6 3.0 16.5 50.6 150
FY20 7.9 5.5 20.8 0.4 34.6 3.3 8.4 2.7 14.5 49.1 112
FY21 7.2 5.1 21.5 1.2 35.0 3.1 9.0 2.9 15.0 50.0 203
FY22 7.7 4.5 19.2 1.5 32.9 3.6 9.7 3.1 16.3 49.3 261
FY23 8.7 6.1 19.1 2.3 36.2 1.7 9.4 2.8 13.9 50.1 254
Jun-23 8.6 5.9 19.0 2.4 35.9 1.9 9.4 2.7 14.0 49.9 291
Sep-23 8.7 5.7 18.4 2.3 35.2 2.0 9.7 2.8 14.4 49.6 315
Dec-23 8.8 5.6 18.2 2.2 34.8 2.0 9.7 2.8 14.4 49.3 360
Source: CMIE Prowess, NSE EPR. ^ Ownership shares provided here for non-promoters are based on total market cap and therefore do not add up to 100. Institutional
and non-institutional share add up to the total non-promoter share. *FPI ownership includes ownership through depository receipts held by custodians. **Other non-
institutions include other non-institutional non-promoters and government non-promoter. #Market cap is for all companies whose ownership data was available for the
quarter.
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Market Pulse
Listed universe ownership trends

Ownership pattern of the NSE-listed universe (December 2023)
Promoter share in NSE listed companies inched up for the third consecutive quarter:
Total promoter share rose
Total promoter ownership in the NSE listed universe rose by 37bps QoQ to 50.7% in the
by 37bps QoQ to 50.7% in
December quarter, marking the third increase in a row. Once again, this was driven the December quarter.
primarily by a strong increase in Government promoter ownership by 77bps QoQ to a six-
year high of 9.7%, partly attributed to continued outperformance of PSUs (Public Sector
Undertakings) relative to the broader market. On the other hand, private Indian promoter
holdings remained unchanged at 33.1%, while foreign promoter holdings slipped for the
sixth straight quarter to a more than ten-year low of 8% (-40 bps QoQ).
Government ownership at six-year highs: Government ownership (promoter as well as
Significant outperformance
non-promoter) in the NSE-listed space has been coming off since 2010, in-line with its
of public sector companies
efforts to garner higher revenues through the disinvestment route, barring a steep rise in the December quarter
last fiscal year, thanks to the LIC issue. The second half of 2023, however, has seen led to Government
government holdings increase meaningfully, with a 98bps QoQ rise in the September ownership rising to a six-
quarter, followed by a 78bps QoQ rise in December to a 24-quarter high of 10.2%. This year high of 10.2%.
has come on the back of significant outperformance of PSUs compared to the broad
market; while the NIFTY 50 Index generated a 10.7% return in the December quarter, the
NIFTY PSE Index generated 31.1% return over the same period.
FPI ownership declined for the third quarter in a row: Notwithstanding strong foreign
FPI ownership declined by
capital inflows during the quarter (US$6.1bn), FPI ownership in the NSE listed universe
20bps QoQ to 18.2%
moderated by 20bps QoQ to an 11-year low of 18.2% in December 2023, even as the despite strong foreign
value held by FPIs in the NSE listed space rose by 13% MoM to Rs 65.5 lakh crore. This capital inflows. Excluding
marks the third quarter in a row to see a drop in FPI share despite net inflows of Financials, the share
US$23.9bn during this period. The was primarily led by underperformance of Financials inched up marginally.
sector during the quarter where FPIs are heavy owners. The Nifty Financial Services Index
rose by 8.5% in the December quarter as opposed to a 10.7% and 12.4% return in the
Nifty 50 and Nifty 500 Indices respectively. Excluding Financials, FPI share in the NSE
listed universe inched up marginally from 11.9% in the September quarter to 12.0% in
the December quarter. In fact, FPI share within the overall NSE listed space dropped or
remained steady across most sectors barring Consumer Discretionary and Healthcare.
…While DMF share inched up further to fresh all-time highs: DMF’s share in the listed
DMF share rose to record
universe inched up for the second quarter in a row to a record high of 8.8% in the
high levels of 8.8% in Dec
December quarter. This corroborates with sustained buying by DMFs in the quarter gone ’23, in line with steady
by, as evidenced by net inflows of Rs 56,990 crore in the December quarter vs. Rs 53,714 increase in net investments
crore in the previous quarter. A part of this is attributed to rising indirect participation of by DMFs during the
individuals via the SIP route. The SIP inflows rose from a monthly average of Rs 14,404 quarter.
crore in the June quarter to Rs 15,700 in the September quarter to Rs 17,204 crore in the Share of Banks, Financial
December quarter to a run-rate of Rs 19,013 crore in the first two months of the last Institutions and Insurance
quarter. This translates into average SIP inflows in the first 11 months of FY24 (Apr’23- companies fell by 14bps
Feb’24) of Rs 16,359 crore, significantly higher than the average of Rs 12,997 crore in QoQ to 5.6%.
FY23. Out of the total DMF share of 8.8% in the NSE listed companies, passive funds held
about 1.7%, with the balance 7.1% held by active funds, both of which are hovering near
record-high levels.
The share of Banks, Financial Institutions and Insurance companies in the NSE-listed
space moderated for the third quarter in a row by 14 bps QoQ to six-quarter low of 5.6%.
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Market Pulse
Individual investors’ holding remained largely unchanged: Having reached 16-year

Individual investors’ share
highs in the September quarter, individual investors’ holdings in the NSE-listed universe in the listed space
remained largely unchanged at 9.7% (-4bps QoQ). After turning net buyers in the remained unchanged at
September quarter with Rs 21,564 crore of net inflows, the December quarter saw a 9.7% in the December
reversal with net outflows (Calculated as the difference between total sell value and total quarter.
buy value of individual investors) Rs 5,853 crore. That said, individuals have resumed
buying in the current quarter, with net inflows totalling to Rs 61,430 crore in the first two
months of the quarter alone.
Figure 1: NSE-listed universe: Ownership pattern by total market cap (%)
September 2023 December 2023
Individual
Non-promoter Individual Other non-institutional Other non-
Non-promoter investors,
corporate, 2.0 investors, 9.7 non-promoters, 2.3 institutional non-
corporate, 2.0 9.7
promoters, 2.3
Other institutional
non-promoters, Private Indian Other institutional Private Indian
2.3 promoters, non-promoters, 2.2 promoters,
33.1 33.1
Banks, FIs & Banks, FIs &
Insurance, 5.7 Insurance, 5.6
FPIs, 18.4 FPIs, 18.2
Govt., 10.2
Govt., 9.4
DMFs, 8.7 Foreign DMFs, 8.8

Foreign
promoters, 8.3 promoters, 7.9
Source: CMIE Prowess, NSE EPR. *FPI ownership includes ownership through depository receipts held by custodians.
Table 3: NSE-listed universe: Ownership trend across key stakeholders by total market cap over last three years
Private Non-
Foreign Passive Active Banks, FIs Individual
% Indian Govt. FPIs * promoter Others **
promoters DMFs ^ DMFs $ & Insurance Investor
promoters corporate
Mar-21 34.7 6.2 9.4 1.2 6.0 5.1 21.5 3.1 9.0 3.7
Jun-21 35.3 6.5 9.1 1.2 6.0 5.0 20.7 3.2 9.4 3.7
Sep-21 36.0 6.0 8.9 1.3 6.0 4.4 20.5 3.4 9.3 4.1
Dec-21 36.4 5.7 8.7 1.3 6.1 4.4 19.7 3.7 9.7 4.3
Mar-22 36.3 6.0 8.7 1.4 6.3 4.5 19.2 3.6 9.7 4.3
Jun-22 35.2 7.6 9.1 1.5 6.4 4.6 18.4 3.7 9.5 4.0
Sep-22 35.0 7.5 9.5 1.6 6.4 5.7 18.6 2.8 9.2 3.7
Dec-22 34.2 8.6 8.9 1.6 6.5 5.8 18.9 1.8 9.2 4.5
Mar-23 33.2 8.4 8.8 1.7 7.0 6.1 19.1 1.7 9.4 4.7
Jun-23 33.4 8.4 8.7 1.7 6.9 5.9 19.0 1.9 9.4 4.7
Sep-23 33.1 9.4 8.3 1.7 7.1 5.7 18.4 2.0 9.7 4.6
Dec-23 33.1 10.2 7.9 1.7 7.1 5.6 18.2 2.0 9.7 4.5
QoQ change 1bps 78bps -40bps 0bps 7bps -14bps -20bps 1bps -4bps -9bps
Source: CMIE Prowess, NSE EPR. Note: Ownership across promoters and non-promoters are based on total market cap and add up to 100. *FPI ownership includes
ownership through depository receipts held by custodians. ** Others include other institutional non-promoters, other non-institutional non-promoters and government
non-promoters. ^ Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index. $ Active funds are those which involve
active investment decisions on the part of the fund manager; share of these funds has been arrived at by subtracting passive AUM from the overall DMF holding.
Institutional ownership in NSE floating stock fell for the second consecutive quarter:
DMF ownership in the NSE floating stock rose for the second quarter in a row by 28bps
QoQ to an all-time high of 17.9% in the December quarter. All other institutional
categories, however, recorded a dip in stake in the floating stock. FPIs’ share moderated
by 13 bps QoQ to near 14-year low of 37.0%. FPI share in the NSE floating stock is now
8.7pp below the peak share seen eight years back (March 2014). Excluding Nifty 50,
however, FPI share in the floating stock remained steady on a QoQ basis at 28.9%. Banks,
Financial Institutions and Insurance companies’ share in the free float of NSE-listed
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Market Pulse
companies moderated further to a six-quarter low of 11.3% (-19bps QoQ). Overall

institutional ownership of the NSE free float moderated by 17bps QoQ to 70.7%, 1.6pp
below the all-time high of 72.3% (Mar’23).
Individual investors’ ownership of the NSE free-float market cap inched up by a moderate
6bps QoQ to a six-quarter high of 19.6% in the December quarter. The share stands
nearly 9.5% below the peak individual ownership level seen over the last 20 years.
Figure 2: NSE-listed universe: Ownership pattern by free float market cap (%)
Non-promoter Other non- Non-
Other non-institutional Govt., 0.9 institutional non- promoter
non-promoters, 4.7 promoters, 4.7 Govt., 1.0
Individual DMFs, 17.9
DMFs, 17.6
investors, Individual investors,
19.5 19.6
Non-promoter
corporate, 4.0
Non-promoter
corporate, 4.0
Other institutional Other institutional

non-promoters, 4.6 non-promoters, 4.5
FPIs, 37.1
FPIs, 37.0
Banks, FIs &
Banks, FIs & Insurance, 11.3
Insurance, 11.5
Table 4: NSE-listed universe: Ownership trend across key stakeholders by floating stock over last three years
Passive Active Banks, FIs & Non-promoter Individual
% FPIs* Others**
DMFs ^ DMFs $ Insurance corporate Investor
Mar-21 2.5 12.0 10.2 42.9 6.3 18.0 8.1
Jun-21 2.5 12.1 10.0 41.9 6.4 18.9 8.2
Sep-21 2.6 12.2 9.0 41.6 6.9 18.9 8.9
Dec-21 2.7 12.4 8.8 39.9 7.6 19.6 9.1
Mar-22 2.9 12.7 9.1 39.1 7.3 19.7 9.3
Jun-22 3.1 13.3 9.6 38.1 7.6 19.7 8.7
Sep-22 3.2 13.2 11.9 38.5 5.7 19.1 8.4
Dec-22 3.4 13.3 12.0 38.8 3.7 18.9 10.0
Mar-23 3.5 14.0 12.1 38.1 3.5 18.7 10.2
Jun-23 3.5 13.8 11.7 38.1 3.8 18.8 10.3
Sep-23 3.4 14.2 11.5 37.1 4.0 19.5 10.2
Dec-23 3.4 14.5 11.3 37.0 4.0 19.6 10.2
QoQ change 3bps 25bps -19bps -13bps 6bps 6bps -8bps
Source: CMIE Prowess, NSE EPR. Note: Ownership across key non-promoter stakeholders is based on free float market cap and add up to 100. *FPI ownership includes
non-promoters. ^ Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index. $ Active funds are those which involve
active investment decisions on the part of the fund manager; share of these funds has been arrived at by subtracting passive AUM from the overall DMF holding.
Long-term ownership trend of the NSE-listed universe
Long-term trend shows a steady drop in promoter ownership during 2009-2019,

followed by a marginal increase thereafter: The long-term trend indicates a sharp rise
in promoter ownership between 2001 and 2009 (To 19-year high of 57.6% in March
2009) that gradually tapered off since, coinciding with the SEBI’s decision to increase the
minimum required free float from 10% to 25% in 2010. However, the drop has been
primarily led by a sharp decline in Government ownership over the years, and strategically
so, with the aim of expanding public partnership in the ownership of CPSEs (Central Public
11/239
Market Pulse
Sector Enterprises) and augmenting its resources for higher expenditure towards
economic development. On the other hand, overall private promoter ownership—Indian
and foreign promoters combined—has increased by ~11.6pp between June 2010 to
December 2021. Promoter share, however, has been inching up since last few years
barring FY23, primarily led by an increase in Government share.
Sharp rise in DMF ownership during 2014-19 supported by rising SIP inflows: Barring
DMF ownership got support
a drop in FY21, DMF ownership has seen a sharp increase over the previous six fiscal from rising SIP investments
years (FY15-FY23), largely reflecting the sustained retail interest in equity mutual funds during FY15-20, only to
as an investment channel through SIPs. Drop in DMF ownership in FY21 (Apr-Mar’21) had see a dip in FY21 and
been largely on the back of moderation in SIP inflows as well as high redemption recover thereafter.
pressures, thanks to macroeconomic slowdown and attendant drop in disposable
incomes that got accentuated by the COVID-19 outbreak. This partly found its way to
Indian equities via higher direct retail investments, as visible from a steady increase in
direct retail ownership during this period. With indirect participation by individual
investors seeing a renewed jump beginning June 2021 via the SIP route, share of DMFs
in the NSE listed universe has risen steadily to record-high levels. Banks, FIs & Insurance
share, on the other hand, has been gradually dropping off since 2012, only to see a
significant jump in FY23 (+158bps).
FPI ownership dropped to sub 20% in FY23 after almost a decade: FPI ownership in
the NSE-listed space saw a gradual increase between 2002 and 2015, except for a brief
period around the 2007-08 financial crisis, but dropped marginally over the subsequent
three years, reflecting negative global cues including the US-China trade war and Brexit
concerns. FPI share picked up over the next two years until December 2019 but fell
sharply during the first two quarters of 2020 post the onset of the COVID-19 pandemic.
This, however, was temporary as huge liquidity injection globally improved risk appetite,
leading to a jump in FPI share in the second half. Since then, FPI share has been trending
down, reflecting weakened investor sentiments in the wake of recurring COVID waves,
China slowdown, Russia-Ukraine war, worsening growth-inflation dynamics, and rapid
monetary tightening by global central banks, notably the US Fed.
Direct individual holding has remained between 8% to 10% for more than a decade
Direct individual ownership
now: Not surprisingly, while individual investments through the SIP route has been rising
fell steadily between 2001
over last few years, barring a steady drop in FY21, direct individual participation in equity
and 2012 and has since
markets remained quite stable—a sign of maturing markets and indirect ownership. rising steadily.
Individual investors’ ownership of the NSE listed universe declined steadily between
2001 and 2012 but has since increased only marginally.
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Market Pulse
Figure 3: NSE-listed universe: Long-term ownership trend across key stakeholders by total market cap
% Ownership trend of listed companies across key stakeholders by total market cap
Promoters DMFs FPIs
Banks, FIs & Insurance Non-promoter corporate Individual investors
60
50
40
30
20
10
0
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-07
Jun-15
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 4: Total promoter ownership trend of NSE-listed Figure 5: Indian and foreign promoter ownership trend
companies by total market cap of NSE-listed companies by total market cap
% Total promoter ownership trend of listed companies by % Govt. Private Indian promoters
total market cap Foreign promoters
60 50
45
55
40
50 35
30
45 25
20
40 15
10
35
5
30 0
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 6: DMF ownership trend of NSE-listed companies Figure 7: FPI ownership* trend of NSE-listed companies
by total market cap by total market cap
% DMF ownership trend of listed companies by total % FPI ownership trend of listed companies by total market
10 market cap cap
25
8 20
6 15
4 10
2 5
0 0
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Source: CMIE Prowess, NSE EPR. *FPI ownership includes ownership through depository receipts held by custodians
13/239
Market Pulse
Figure 8: Banks, FIs & Insurance ownership trend of Figure 9: Individual ownership trend of NSE-listed
NSE-listed companies by total market cap companies by total market cap
% Banks, FIs & insurance ownership trend of listed % Individual investor ownership trend of listed companies
companies by total market cap
20 by total market cap
8.0
7.5 18
7.0 16
6.5 14
6.0 12
5.5 10
5.0 8
4.5 6
4.0 4
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 10: NSE-listed universe: Long-term ownership trend across key stakeholders by free float market cap
% Ownership trend of listed companies across key non-promoter stakeholders by floating stock
DMFs FPIs Banks, FIs & Insurance Non-promoter corporate Individual investors
60
50
40
30
20
10
0
Jun-02
Jun-03
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-04
Jun-15
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 11: DMF ownership trend of NSE-listed Figure 12: FPI ownership trend of NSE-listed companies
companies by free float market cap by free float market cap
% DMF ownership trend of listed companies by free float % FPI ownership trend of listed companies by free float
20 market cap 60 market cap
50
15
40
10 30
20
5
10
0 0
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
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Market Pulse
Figure 13: Banks, FIs & Insurance ownership trend of Figure 14: Individual ownership trend of NSE-listed
NSE-listed companies by free float market cap companies by free float market cap
% Banks, FIs & Insurance ownership trend of listed % Individual investor ownership trend of listed companies
companies by free float market cap by free float market cap
18 35
16 30
14
25
12
19.54
20
10
15 16.87
8
6 10
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
SIP inflows continue to rise: SIPs have been a preferred route for individual investors to
invest in equity markets barring FY20-21. After a drop in 2020, that saw individual Average monthly SIP inflows
in FY23 rose by 25.0% YoY
investors shift away from being indirect investors to direct participants in the equity
and further by ~26% in
market, inflows into mutual funds through the SIP route has been rising steadily since FY24 thus far (Apr-Feb’24).
then, barring some moderation in early FY22 due to the virulent second wave of the
pandemic. Monthly SIP inflows in FY23 (Apr’22-Mar’23) averaged at Rs 12,998 crore vs.
Rs 10,381 crore in FY22, rising further to Rs 16,359 crore during the first 11 months of
the current fiscal (Apr’23-Feb’24). Total SIP inflows increased meaningfully from Rs
47,101 crore in the September quarter to Rs 51,611 crore in the December quarter,
contributing to the DMF ownership reaching fresh all-time highs.
Figure 15: Monthly SIP inflows into mutual funds Figure 16: Quarterly SIP inflows vs DMF ownership
Rs crore Rs crore Quarterly SIP flows vs. DMF ownership %
Monthly SIP inflows into mutual funds
25,000 60,000 SIP inflows 19
17
50,000
20,000
15
40,000
15,000 13
30,000 11
10,000 9
20,000
7
5,000 10,000
5
0 0 3
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Oct-16
Oct-17
Oct-18
Oct-19
Oct-20
Oct-21
Oct-22
Oct-23
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Source: AMFI, NSE EPR.
Passive DMFs’ ownership moderated in the December quarter: Passive holding of

DMFs through ETFs and index funds in the NSE listed companies has risen rapidly over
the past few years. The AUM of passive funds has risen at a CAGR of 62.6% over the last
eight years, significantly higher than the 25.5% recorded by actively managed mutual
funds. The quarter gone by saw passive funds’ holdings rise by 14.3% QoQ, while the
share of active funds in the NSE listed companies increased slightly more by 15.4% QoQ.
As a result, the share of passive funds in the total DMF portfolio moderated marginally to
15/239
Market Pulse
19.1% in the December quarter (vs. 19.3% in Sep’23), with Rs 6.1 lakh crore of AUM. This
is 1.1pp away from the all-time high of 20.1% recorded in December 2022.
Holdings in the NSE listed universe by passive and active funds remained largely
unchanged in the December quarter; out of the 8.7% share of DMFs in the NSE listed
universe, 1.7% is currently held by passive funds, while 7.1% is in the form of active
funds. In terms of free float market capitalization, DMF ownership inched up from 17.6%
to 17.9% in the December quarter, driven largely by active funds (+25bps QoQ to 14.5%),
with passive fund holdings remaining largely unchanged at 3.4%.
Figure 17: DMF holding in NSE listed universe Figure 18: DMF segregation: active and passive funds
Rs lakh crore DMF holding in NSE listed companies % DMF seggregation into active and passive funds
Active funds Passive funds Active funds Passive funds
35 100
30
80
25
60
20
15 40
10
20
5
0 0
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Source: AMFI, MFI Explorer, NSE EPR. Note: Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index. Active funds
are those which involve active investment decisions on the part of the fund manager; share of these funds has been arrived at by subtracting passive AUM from the overall
DMF holding.
Figure 19: Annual growth of DMF holding in the NSE-listed universe

% Annual growth in DMF AUM invested in NSE listed companies
200.0 Passive Active
175.7
150.0
108.5
100.0 84.4 83.4

64.7 62.8
50.2
39.3 42.9 42.4
50.0 34.5 33.1
18.8 16.9
8.7
2.0
0.0
-0.4
-20.2
-50.0
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24
DMF holding.
16/239
Market Pulse
Figure 20: CAGR of DMF holding in the NSE-listed universe

%
Growth in DMF holding in NSE listed companies
70.0 Active Passive Total

62.6
60.0
50.0
42.4
40.6 40.8
40.0 37.4
33.1 31.9
30.7
28.4
30.0 26.1 25.5
23.7
20.0 15.4 14.3 15.2
10.0
-
Last quarter 1Y 3Y CAGR 5Y CAGR 8Y CAGR
DMF holding.
Figure 21: DMF ownership in total market cap of NSE Figure 22: DMF ownership in floating market cap of NSE
listed companies listed companies
% DMF ownership in total market cap of NSE listed % DMF ownership in the floating stock of NSE listed
companies companies
10.0 Total DMFs Passive funds 8.8 20.0 Total DMFs Passive funds
17.9
Active funds 17.5 Active funds
8.0
7.1 15.0 14.5
6.0 12.5
10.0
4.0 7.5
5.0
2.0
1.7 3.4
2.5
0.0 0.0
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Jun-16
Jun-17
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-15
Jun-18
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Source: CMIE Prowess, AMFI, MFI Explorer, NSE EPR. Note: Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index.
Active funds are those which involve active investment decisions on the part of the fund manager; share of these funds has been arrived at by subtracting passive AUM
from the overall DMF holding.
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Market Pulse
Table 5: Shareholding of DMFs across active and passive funds in the NSE listed companies
Investment (Rs lakh crore) Ownership in NSE total market cap (%) Ownership to NSE floating stock (%)
%
Active Passive Total Active Passive Total Active Passive Total
FY15 3.9 0.1 4.0 3.9 0.1 3.9 7.9 0.2 8.1
FY16 4.0 0.2 4.1 4.2 0.2 4.4 8.4 0.4 8.8
FY17 5.5 0.5 6.0 4.6 0.4 4.9 9.2 0.8 9.9
FY18 7.9 0.7 8.6 5.5 0.5 6.1 11.2 1.1 12.2
FY19 9.4 1.4 10.7 6.3 0.9 7.2 12.4 1.8 14.2
FY20 7.5 1.4 8.8 6.7 1.2 7.9 13.6 2.5 16.1
FY21 12.2 2.5 14.7 6.0 1.2 7.2 12.0 2.5 14.5
FY22 16.4 3.8 20.1 6.3 1.4 7.7 12.7 2.9 15.7
FY23 17.8 4.4 22.2 7.0 1.7 8.7 14.0 3.5 17.4
Jun-23 20.1 5.0 25.1 6.9 1.7 8.6 13.8 3.5 17.3
Sep-23 22.2 5.3 27.5 7.1 1.7 8.7 14.2 3.4 17.6
Dec-23 25.7 6.1 31.7 7.1 1.7 8.8 14.5 3.4 17.9
Source: CMIE Prowess, AMFI, MFI Explorer, NSE EPR. Note: Passive mutual funds track an index by maintaining a portfolio that mimics the underlying assets of an index.
Active funds are those which involve active investment decisions on the part of the fund manager; share of these funds has been arrived at by subtracting passive AUM
from the overall DMF holding.
FPI buying picked up in the December quarter: After significant volatility in foreign Net FII inflows picked up to
institutional inflows flows in FY23, Q1FY24 saw FIIs becoming strong buyers, with a 10- US$ 6.1bn in the December
quarter high net inflow of US$12.5bn. While inflows slowed down to US$5.4bn in the quarter from US$ 5.4bn in
September quarter on the back of global uncertainty, the December quarter saw a the previous quarter.
moderate uptick in FPI buying with US$6.1bn worth of inflows in the quarter. In spite of
strong foreign capital inflows this year, FPI ownership in the NSE listed space continued
to decline, primarily attributed to underperformance of FPI-heavy stocks, particularly
Financials. The first two months of Q4FY24, January and February, have seen renewed
FPI selling, with outflows of US$ 2.9bn, only to see a reversal in March, translating into
net inflows of US$ 2.0bn in the March quarter thus far and US$25.9bn in FY24 till date
(As of March 19th, 2024).
Figure 23: Net foreign institutional inflows and FPI shareholding in the NSE-listed floating stock
US$ mn Net foriegn institutional inflows and FPI shareholding %
25000 Net FII inflows FPI ownership in NSE listed floating stock (R) 50.0
20000 45.0
15000 40.0
35.0
10000
30.0
5000
25.0
0
20.0
-5000
15.0
-10000 10.0
-15000 5.0
-20000 0.0
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Source: Bloomberg, CMIE Prowess, NSE EPR. * FPI ownership includes ownership through depository receipts held by custodians.
18/239
Market Pulse
Figure 24: Annual net FII inflows trend

US$ bn
Annual net FII inflows into Indian equities
40 36.2
34.2
30 27.1 25.9
24.3 24.8 25.4
20.8
18.1
20 14.7 15.3
10.6 10.2 10.7
10 7.4
5.2 3.2 3.1 2.3 2.1
0
1.2 0.9
-10 5.1
11.1
-20
18.5
-30
FY00
FY09
FY18
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY19
FY20
FY21
FY22
FY23
FY24TD*
Source: Refinitiv Datastream, NSE EPR. * Data for FY24TD is as of March 19th, 2024.
Direct participation by individual investors came off in the December quarter:

Individual investors’ participation in Indian equities picked up meaningfully during 2020
and 2021. A sharp market crash in March 2020 after the onset of COVID-19 pandemic
lured individual investors into trading in equity markets, with a strong market rebound
thereafter further strengthening their sentiments. Individual investors turned net buyers
of Indian equities in 2020 after a 11-year long hiatus between 2009-19, further
strengthening their participation in the subsequent two-and-a-half years. Between Jan
2020 and December 2022, they invested a total of Rs 2.8 lakh crore in NSE’s capital
market segment (secondary market only). Strong individual participation over the last few
years is also visible in new investor registrations. The last three years ending December
2023 saw an addition of 8.95 crore new Demat accounts by NSDL and CDSL combined.
This is about 64% of outstanding accounts with both the depositories as of December
2023.
Direct individual participation moderated in the last quarter of 2022 and remained on
sidelines in the first two quarters of 2023 as well. While the September quarter saw an
uptick in individuals’ buying with net inflows of Rs 21,564 crore, December saw
individuals turn net sellers again, recording Rs 5,854 crore of net outflows. The trend
seems to have reversed again this year, with net inflows by individuals already crossing
Rs 60,000 crore in just two months alone.
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Market Pulse
Figure 25: Net inflows by individual investors in the NSE’s CM segment (2002-)
Rs crore
Net inflows by individual investors
160000 1,42,756
140000
120000
100000 88,347
80000
61,430
60000
40000
20000 5,208
0
-20000
-40000
-60000
2008
2002
2003
2004
2005
2006
2007
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024TD
Source: NSE EPR.
Note: 1. Note: Retail investors: individual domestic investors, NRIs, sole proprietorship firms and HUFs.
2. Net flows include investments in securities in EQ, BE, SM, and ST series including ETFs only.
3. Net flows are calculated as buy traded value – sell traded value.
4. Data for 2024TD is for the period Jan-Feb’24.
Figure 26: Quarterly trend of number of investor Figure 27: Annual trend of new investor account
accounts with depositories additions with depositories
crore Outstanding number of investor accounts crore New investor account additions
16.0 4.0
CDSL NSDL CDSL NSDL
x 10
x 10
14.0 3.5
12.0 3.0
10.0 2.5
8.0 2.0
6.0 1.5
4.0 1.0
2.0 0.5
0.0 0.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24TD
Sep-12
Sep-15
Sep-18
Sep-21
Mar-11
Mar-14
Mar-17
Mar-20
Mar-23
Jun-13
Jun-16
Jun-19
Jun-22
Jun-10
Dec-11
Dec-14
Dec-17
Dec-20
Dec-23
Source: SEBI Bulletin, NSE EPR. Data for FY24TD is for the period Apr’23-Feb’23.
Sector-wise ownership of the NSE-listed universe (December 2023): The sector-wise Sector-wise, Utilities
ownership pattern of the NSE-listed universe across key stakeholders in the quarter gone remained the top sector in
(Oct’23-Dec’23) shows that the Real Estate sector continues to lead in terms of promoter terms of Govt. ownership.
ownership at 65.8% (-7bps QoQ), followed by Utilities at 58.8% (+56bps QoQ), Materials
Financials remained at the
at 56.5% (+28bps QoQ), Industrials at 54.2% (+51bps QoQ), Information Technology at top in terms of DMF
53.8% (+12bps QoQ) and Communication Services at 53.6% (-21bps QoQ). Among the ownership, followed by
remaining sectors, the largest increase in promoter ownership was recorded in Consumer Healthcare and Consumer
Staples (+42bps QoQ to 50.6%), followed by Energy (+23bps to 52.2%) and Financials Discretionary.
(+20bps to 41.1%).
Sector-wise, Utilities retained the top spot in terms of Government ownership for the third
quarter in a row, even as it recorded a sharp 82bps QoQ drop to 24.2% in the quarter
ending December 2023. Financials stood second, registering a second consecutive steep
jump in ownership (+164bps QoQ) to a nine-year high of 20.9%. Government holding in
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Market Pulse
the Energy sector increased by 136ps QoQ to a 16-quarter high of 20.1% on the back of
significant outperformance of some Government-owned companies including Coal India.
The diversity in DMFs’ share across sectors was fairly low, with Financials leading at
11.0% (+7bps QoQ), followed by Health Care (+61bps QoQ to 10.9%), Consumer
Discretionary (+7bps QoQ to 10.3%) and Communication Services (+12bps QoQ to 10%).
Barring Industrials, all sectors saw an increase in the share of holdings by DMFs.
Financials remained the sector with the highest FPI ownership, even as FPI share in
Sector-wise, FPI share is
Financials continued to drop for the third consecutive quarter (-24bps QoQ to 26.7%).
the highest in Financials at
The share now stands 9.3pp lower than the December 2020 level of 36%. This was
26.7% but with a 9.3pp
followed by Communication Services and Energy at 19.0% (+8bps QoQ) and 18.9% (- drop since Dec’20.
52bps QoQ) respectively. Materials had the lowest FPI ownership in the September
quarter at 11.5%. While Materials, Consumer Discretionary, Consumer Staples,
Communication Services and Health Care witnessed an uptick in FPI ownership, all other
sectors recorded a QoQ decline.
Figure 28: NSE-listed universe: Sector-wise ownership pattern across key stakeholders (December 2023)
% Sector-wise ownership of the listed universe
Private Indian promoters Govt. Foreign promoters
DMFs FPIs* Banks, FIs & Insurance
Non-promoter corporate Individual investors Others**
100 2.4 2.4 3.6 1.9 2.5
4.9 4.3 4.4 5.3 4.4
6.1 9.2 7.5 6.1 6.4
9.0 8.9
90 10.8 9.9
11.9 11.8 1.2
5.0
10.6 8.6 4.9
5.8 3.9 6.5
80 3.8 4.7 4.6
17.3
19.0 8.2 15.9
70 19.0 16.5 13.2 18.2 11.5
17.5 5.9
13.9 26.7 1.4
7.0
60 10.0 6.8
7.0 10.9 8.7 8.0
10.3 6.5
6.3 0.4 7.3
50 4.4
13.4 8.9
11.0 13.4 5.9
10.2 20.1
40 3.2 1.8 24.2
2.6 25.7
11.5
64.0
30 20.8
0.1 48.6
43.3 44.3
20 39.4 37.1 34.3
29.3 29.1
24.8
10 18.6
0
Comm Svcs. Cons. Disc. Cons. Staples Energy Financials Healthcare Industrials IT Materials Reality Utilities
Source: CMIE Prowess, NSE EPR. * FPI ownership includes ownership through depository receipts held by custodians. **Others include other institutional and non-
institutional non-promoter investors
Sector allocation in the NSE-listed universe for key stakeholders (December 2023):
Both DMFs and FPIs saw
The table below shows sector allocation for key shareholder categories in all NSE-listed their portfolio allocation to
companies as of December 2023. Government ownership remains concentrated in Financials decreasing yet
Financials, Energy, Utilities, and Industrials, together accounting for almost 90% of the again in Q3FY24.
Government’s allocation in the NSE listed space. Consumer sector—Discretionary and
Staples—account for 41.6% (-86bps QoQ) of the exposure of foreign promoters to the
NSE-listed space, followed by Industrials at 20.2% (+29bps QoQ).
Except for an outsized exposure to Financials, DMF portfolio continues to remain more
diversified as compared to FPIs. Both FPIs and DMFs saw their portfolio allocation to
Financials dropping significantly by almost 1pp QoQ for the second consecutive quarter,
partly attributed to the relative underperformance of the Financials sector compared to
the rest of the listed space. The drop in DMFs’ allocation to Financials was absorbed by
Utilities, Real Estate and Industrials during the quarter.
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Market Pulse
For FPIs, the decline in their allocation to Financials was compensated for by a 57bps rise
in allocation to Utilities to 4.5% and a 39bps QoQ increase in exposure to Industrials to a
13-year high of 8.7%.
Table 6: Sector allocation of the NSE-listed universe for key stakeholders (December 2023)
Non-
Pvt. Indian Foreign Domestic Banks, FIs,
% Govt FPIs* promoter Individual
promoters promoters MFs Insurance
corporate
Communication Services 3.6 1.0 5.1 3.4 3.2 2.7 2.4 1.9
Consumer Discretionary 11.6 2.6 13.3 12.1 9.9 7.1 14.4 11.6
Consumer Staples 6.6 0.1 28.3 6.3 6.6 12.8 5.2 9.6
Energy 7.9 15.1 0.3 6.1 7.9 11.8 2.4 6.0
Financials 13.2 48.0 5.2 29.4 34.4 24.5 22.0 21.9
Health Care 7.5 0.0 6.4 7.1 5.2 4.0 6.2 5.8
Industrials 10.6 13.5 20.2 11.8 8.7 10.1 11.6 14.8
Information Technology 15.7 0.8 6.0 9.6 10.6 12.5 5.6 9.8
Materials 15.6 6.8 10.7 9.0 7.4 9.5 19.7 14.2
Real Estate 3.3 0.1 0.3 1.1 1.6 0.4 1.6 1.1
Utilities 4.5 12.2 4.2 4.1 4.5 4.5 9.1 3.4
Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: CMIE Prowess, NSE EPR. * FPI ownership includes ownership through depository receipts held by custodians.
DMFs’ allocation to Financials declined further while that to Utilities and Industrials
increased: DMFs’ exposure to Financials declined by 92bps QoQ to a seven-quarter low
of 29.4% in the December quarter, marking the fourth consecutive drop, resulting in a
3.4pp fall in 2023. DMFs also trimmed allocation to Consumer Staples by 22bps QoQ to
a seven-quarter low of 6.3%. The dips were compensated for by an increase in allocation
to Utilities (+51bps QoQ to 4.1%), Industrials (+29bps to 11.8%), Real Estate (+19bps to
1.2%) and Energy (+14bps to 6.1%). Sectors where DMFs broadly maintained their
exposure at a portfolio level within the NSE listed universe included Communication
Services and Consumer Discretionary.
Figure 29: DMF sector allocation of the NSE-listed universe (September 2023 vs. December 2023)
% DMF sector allocation of the NSE listed universe
Financials 29.4
30.3
Cons. Disc. 12.1

12.1
Industrials 11.8
11.5
IT 9.6
9.7
Materials 9.0
8.9
7.1 Dec-23
Healthcare 6.9
Sep-23
Cons. Staples 6.3
6.5
Energy 6.1
5.9
Utilities 4.1
3.6
Comm Svcs. 3.4

3.5
Realty 1.1
1.0
0 5 10 15 20 25 30 35
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Market Pulse
Figure 30: DMF sector allocation of the NSE-listed universe over last five years
% DMF sector allocation of the NSE listed universe
Comm Svcs. Cons. Disc. Cons. Staples Energy Financials Healthcare
Industrials IT Materials Reality Utilities
100
4.3 4.1
90 10.2 9.0
80 8.8 9.6
70 10.8 11.8
5.9
60 7.1
50
32.1 29.4
40
30
6.1
20 6.3
7.1
10 12.1
10.8
0 2.5 3.4
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
FPI exposure to Financials continued to decline: FPIs saw their allocation to Financials
FPIs further trimmed
coming off for the third quarter in a row, partly attributed to underperformance of the exposure to Financials, partly
sector relative to the broader market. The December quarter saw a steep 94bps QoQ dip led by relative
in allocation of FPIs to Financials to 34.4%, translating into a drop of 2pp in the fiscal thus underperformance of the
far. That said, Financials still account for nearly 45% of the FPI’s investments in the NSE sector during the quarter.
listed companies. Other sectors which saw dips in FPI portfolio share include Information
Technology (-19bps QoQ to 10.6%), Consumer Staples (-14bps QoQ to 6.6%) and Energy
(-10bps to 7.9%). The highest jump in FPI portfolio share was seen in Utilities, which
increased by 47bps QoQ to 4.7%, followed by a 39bps QoQ increase in Industrials to a
13-year high of 8.7%, a 26bps QoQ rise in Real Estate to 1.6% and a 24bps hike in
Consumer Discretionary to 9.9%.
Figure 31: FPI sector allocation of the NSE-listed universe (September 2023 vs. December 2023)
% FPI sector allocation of the NSE listed universe
Financials 34.4
35.4
IT 10.6
10.8
Cons. Disc. 9.9
9.7
Dec-23
Industrials 8.7
8.3 Sep-23
Energy 7.9
8.0
Materials 7.4
7.3
Cons. Staples 6.6
6.8
Healthcare 5.2
5.2
Utilities 4.5
4.0
Comm Svcs. 3.2
3.2
Realty 1.6
1.4
0 5 10 15 20 25 30 35 40
Source: CMIE Prowess, NSE EPR. * FPI ownership includes ownership through depository receipts held by custodians
23/239
Market Pulse
Figure 32: FPI sector allocation of the NSE-listed universe over last five years
% FPI sector allocation of the NSE listed universe
100 3.0 4.5
6.5
90 7.4
11.1
80 10.6
5.6
70 4.6 8.7
5.2
60
50 40.2
34.4
40
30
8.2 7.9
20
8.0 6.6
10
9.1 9.9
0 3.0 3.2
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Nifty 50 ownership trends

Ownership pattern of the Nifty 50 universe (December 2023)
Promoter stake in the Nifty 50 universe increased in the December quarter: After
Promoters’share in the
trending downwards since September 2021, overall promoter share in the Nifty 50 Nifty 50 inched up by
universe rose marginally in the June quarter and remained steady in the September 23bps in the December
quarter. The December quarter, however, saw the promoter share increase by 23 bps quarter on the back of
QoQ to 42%, driven by an equivalent increase in Government promoter ownership to a increasing government
15-quarter high of 6.1%. Private and Foreign promoter holdings remained largely stake.
unchanged in the quarter gone by at 29.5% and 6.5% respectively.
Institutional ownership declined marginally: Notwithstanding strong foreign capital
FPI share in Nifty 50
inflows during the quarter (US$6.1bn), FPI ownership in the Nifty 50 universe remained moderated to 25.1% while,
largely unchanged in the December quarter at 25.1% (-4bps QoQ). This is about 3.4pp DMF holding reached a
lower than the highest FPI holding of 28.5% witnessed in the pre-covid period in fresh all-time high level of
December 2019. This was primarily led by underperformance of Financials sector relative 10.2% in the December
quarter.
to the broader market during the quarter where FPIs are heavily invested in. Financials
account for more than 40% of the FPI investments in the Nifty 50 universe. Excluding
Financials, FPI ownership in the Nifty 50 companies actually rose by 19bps QoQ to a
seven-quarter high of 14.7%.
DMF share inched up marginally by 11bps QoQ to the highest ever level of 10.2% in the
December quarter, in line with the trend seen for the broader listed universe. Banks,
Financial Institutions and Insurance share moderated by 10bps QoQ to 8%, which is
4.8pp lower than the peak of 12.8% witnessed in June 2003. Overall institutional
ownership in the Nifty 50 companies dipped for the third quarter in a row by 10bps QoQ
to 46.3% in the December quarter, even as this is significantly higher than the average of
43.9% recorded over the previous three years.
24/239
Market Pulse
Individual investors’ ownership moderated in Nifty 50: Individual investors’ share in

the Nifty 50 universe moderated by 11 bps QoQ to 8.2% in the December quarter,
standing 36bps shy of the 15-year high of Jun’22. Of the 50 Nifty stocks, 36 of them saw
a decline in retail ownership in the quarter gone by. This is also reflected in net outflows
by individual investors during the period. That said, with renewed buying in the current
quarter, individual ownership should see an improvement.
Figure 33: Nifty 50: Ownership pattern by total market cap (%)
Individual investors, Other non-institutional non- Individual investors, Other non-institutional non-
Non-promoter Non-promoter
8.3 promoters, 2.1 8.2 promoters, 2.1
corporate, 1.3 corporate, 1.3
Private Indian
Other institutional Private Indian
Other institutional non- promoters,
non-promoters, promoters,
promoters, 3.0 29.4
2.9 29.4
Banks, FIs & Banks, FIs &
Insurance, 8.1 Insurance,
8.0
Govt., 6.0 Govt., 6.3
FPIs, 25.2 FPIs, 25.1
Foreign Foreign
promoters, promoters,
DMFs, 10.1 6.5 DMFs, 10.2 6.5
Table 7: Nifty 50: Ownership trend across key stakeholders by total market cap over the last three years
Private Banks, FIs Non-
Foreign Domestic Individual
% Indian Govt & FPIs * promoter Others**
promoters MFs investors
promoters Insurance corporate
Mar-21 31.2 5.0 6.9 7.9 6.6 27.4 2.7 8.1 4.4
Jun-21 31.6 5.2 6.5 8.0 6.5 26.9 2.7 8.2 4.5
Sep-21 32.2 5.2 6.4 8.1 5.9 26.5 2.6 8.1 5.0
Dec-21 32.4 5.1 6.1 8.5 5.9 25.9 2.6 8.3 5.2
Mar-22 32.5 5.1 5.7 8.9 6.1 25.4 2.6 8.5 5.2
Jun-22 31.3 5.3 6.5 9.4 6.5 24.8 2.7 8.6 4.9
Sep-22 31.2 5.3 6.8 9.3 8.0 25.2 1.7 8.3 4.2
Dec-22 30.9 5.5 6.4 9.5 8.0 25.7 1.2 8.1 4.6
Mar-23 29.8 5.6 6.6 9.9 8.2 25.6 1.2 8.3 4.8
Jun-23 29.9 5.5 6.6 9.7 8.1 25.7 1.3 8.2 5.0
Sep-23 29.4 6.0 6.5 10.1 8.1 25.2 1.3 8.3 5.0
Dec-23 29.4 6.3 6.5 10.2 8.0 25.1 1.3 8.2 5.0
QoQ change 3bps 23bps -3bps 11bps -10bps -4bps 0bps -11bps -7bps
non-promoters.
In terms of the floating stock, FPI share in the Nifty 50 Index increased by 10bps QoQ to
43.3%, 8.5pp away from the highest share of 51.8% witnessed in December 2014. DMF
ownership in the Nifty 50 free float market cap inched up by 25bps QoQ to reach a fresh
all-time high of 17.6% in the quarter ending December 2023. This is now 3.2pp higher
than the pre-pandemic level (December 2019).
The share of Banks, Financial Institutions, and Insurance companies moderated by 12bps
to 13.8% in the December quarter, wiping out the marginal increase witnessed in the
September quarter. Overall institutional ownership in the Nifty 50 floating stock
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Market Pulse
increased by 14bps QoQ to 79.8%. The ownership of other non-institutional non-

promoter (that are neither individuals nor corporates and primarily comprise of trusts,
clearing members and HUFs) stood largely unchanged in the December quarter. The rise
in institutional ownership in the quarter corresponded with a commensurate fall in
individuals’ holding, which declined by 13bps QoQ to a three-year low of 14.1%.
Figure 34: Nifty 50: Ownership pattern by free float market cap (%)
Other non-institutional Other non-institutional Non-promoter
Individual investors, non-promoters, 3.6 non-promoters, 3.6 Govt., 0.4
14.3 Non-promoter Govt.,
Non- DMFs, 17.6
0.4 Individual
Non-promoter promoter
investors, 14.1
corporate, 2.2 DMFs, 17.3 corporate,
2.2
Other
institutional non- Other institutional
promoters, 5.1 non-promoters, 5.0
Banks, FIs &

Banks, FIs & Insurance, 13.8
Insurance, 14.0
FPIs, 43.2 FPIs, 43.3
Table 8: Nifty 50: Ownership trend across key stakeholders by free float market cap over last the three years
Banks, FIs & Non-promoter Individual
% Domestic MFs FPIs* Others**
Insurance corporate Investors
Mar-21 13.8 11.5 47.9 4.7 14.2 7.8
Jun-21 14.0 11.4 47.3 4.8 14.5 8.0
Sep-21 14.4 10.4 47.0 4.6 14.4 9.1
Dec-21 15.0 10.4 45.8 4.6 14.8 9.4
Mar-22 15.7 10.7 44.8 4.6 14.9 9.3
Jun-22 16.5 11.4 43.5 4.8 15.0 8.8
Sep-22 16.4 14.1 44.3 3.0 14.6 7.7
Dec-22 16.5 13.9 44.8 2.1 14.2 8.4
Mar-23 17.1 14.1 44.0 2.0 14.3 8.5
Jun-23 16.7 13.9 44.1 2.2 14.2 8.9
Sep-23 17.3 14.0 43.2 2.2 14.3 9.0
Dec-23 17.6 13.8 43.3 2.2 14.1 8.9
QoQ change 25bps -12bps 10bps 0bps -13bps -9bps
non-promoters.
Long-term ownership trend of the Nifty 50 universe: The long-term ownership trend
of the Nifty 50 Index echoes the trend seen in the broader listed universe. Overall
promoter ownership has seen a steady decline since 2009 until March 2019, only to see
a gradual increase over the next one-and-a-half years and decline thereafter. The
decline in promoter share between 2019 and 2019 was primarily led by a sharp drop in
Government ownership, even as private Indian promoters’ holding increased during this
period. Foreign promoters’ share, on the other hand, has remained broadly steady
barring the post-COVID volatility.
The DMF ownership has seen a sharp increase since 2014 barring the drop in 2020 and
is currently only marginally lower than the peak seen over the last 22 years. FPI
ownership saw a steady increase since the Global Financial crisis until early 2015,
26/239
Market Pulse
reaching the highest level of 28.3% in Mar-15 only to hover around similar levels until
Dec-19. Since the onset of the pandemic, FPI share has been gradually falling barring a
significant increase in the fourth quarter of 2020. Contrary to the overall NSE-listed
universe, individual investors’ ownership in the Nifty 50 Index has been steadily rising
over the last eight years, barring a modest drop over the last few quarters.
Figure 35: Nifty 50: Long-term ownership trend across key stakeholders by total market cap
% Ownership trend of Nifty 50 universe key stakeholders by total market cap
Promoters DMFs FPIs
Banks, FIs & Insurance Non-promoter corporate Individual investors
60
50
40
30
20
10
0
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 36: Total promoter ownership trend of the Nifty Figure 37: Indian and foreign promoter ownership trend
50 universe by total market cap of the Nifty 50 universe by total market cap
Govt.
% Total promoter ownership trend of Nifty 50 by total %
Private Indian promoters
60 market cap Foreign promoters
40
55 35
30
50
25
45 20
15
40
10
35 5
30 0
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
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Market Pulse
Figure 38: DMF ownership trend of Nifty 50 universe by Figure 39: FPI ownership trend of Nifty 50 universe by
total market cap total market cap
% DMF ownership trend of Nifty 50 by total market cap % FPI ownership trend of Nifty 50 by total market cap
10
30
9 28
8 26
24
7
22
6 20
5 18
16
4
14
3 12
2 10
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 40: Banks, FIs & Insurance ownership trend of Figure 41: Retail ownership trend of Nifty 50 universe by
Nifty 50 universe by total market cap total market cap
% Banks, FIs & Insurance ownership trend of Nifty 50 by % Individual investor ownership trend of Nifty 50 by total
total market cap market cap
20
18
13
16
11 14
12
9
10
7 8
6
5
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Our long-term ownership analysis on the free float market cap of the Nifty 50 Index also
shows that while DMF ownership is currently at the highest ever level of 17.6%, FPI
ownership is nearly 8.5pp lower than the peak of 51.8% seen in December 2014.
28/239
Market Pulse
Figure 42: Nifty 50: Long-term ownership trend across key stakeholders by free float market cap
% Ownership trend of Nifty 50 universe across key non-promoter stakeholders by floating stock
60
50
40
30
20
10
0
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-01
Jun-09
Jun-17
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 43: DMF ownership trend of the Nifty 50 universe Figure 44: FPI* ownership trend of the Nifty 50 universe
by free float market cap by free float market cap
% DMF ownership trend of Nifty 50 by free float market cap % FPI ownership trend of Nifty 50 by free float market cap
20 55
18 50
16 45
14
40
12
35
10
30
8
6 25
4 20
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
29/239
Market Pulse
Figure 45: Banks, FIs & Insurance ownership trend of Figure 46: Individual ownership trend of the Nifty 50
the Nifty 50 universe by free float market cap universe by free float market cap
% Banks, FIs & Insurance ownership trend of Nifty 50 by % Individual investor ownership trend of Nifty 50 by free
free float market cap float market cap
24 30
28
22
26
20 24
22
18
20
16 18
14 16
14
12
12
10 10
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Sector-wise ownership of the Nifty 50 universe (December 2023): In the quarter

ending December 2023, Information Technology within the Nifty 50 universe had the
highest promoter ownership at a 14-quarter high of 56.3% (+23bps QoQ). This is followed
by Communication Services at 54.6% (-18bps QoQ), Energy at 51. 7% (+14bps QoQ) and
Utilities at 51.2%. Utilities remained the top sector in terms of Government share within
the Nifty 50 Index at 51.3%, followed by Energy at 16.2% (+70bps). Government share
in all other sectors remained largely unchanged.
Utilities retained the top spot in terms of DMF ownership in the Nifty 50 market cap for
the fourth consecutive quarter with a 48bps QoQ increase to a fresh all-time high of
15.5% in the December quarter. Financials remained second at the highest ever level of
15% (+28bps QoQ), followed by Health Care (13.1%, +2bps), Communication Services
(11.3%, -4bps QoQ) and Consumer Discretionary (9.2%, -7bps QoQ).
FPI ownership remained largest in Financials, accounting for 40.4% (+53bps QoQ) of the
market cap of this sector in the Nifty 50 universe. This was followed by Consumer
Discretionary at 23.4% (- 20bps QoQ), Health Care at 23.2% (+30bps QoQ) and Utilities
(22.7%, -67bps QoQ). The largest dip in FPI ownership was seen in Energy, with a 28bps
QoQ decrease to 20.3%.
30/239
Market Pulse
Figure 47: Nifty 50: Sector-wise ownership pattern across key stakeholders (December 2023)
% Sector-wise ownership of the Nifty 50 universe
100 2.3 2.4 2.2 1.7
1.8 4.5 4.2 5.0 6.4 2.5
13.6 7.3 10.3 6.5
6.7 8.2 7.5 5.9
90 10.0
7.7 9.8
9.2 11.0
4.9 7.1 5.8
80 12.3 4.2
22.7 6.8
22.7
11.2 19.3
70 20.3 23.2
23.3 13.5
18.0
60 11.3 40.4 7.6 15.5
7.4 20.2 2.2
9.2 14.8 13.0 7.6 -
50
15.0 1.2
16.2
6.6 2.9 9.1
40 12.7
6.0 15.0 9.3

30
54.1 51.3
45.8
20 39.6 36.3 7.4 41.1
36.8
28.4 27.8
10
15.5
0
Comm Svcs. Cons. Disc. Cons. Energy Financials Healthcare Industrials IT Materials Utilities
Staples
* FPI ownership includes ownership through depository receipts held by custodians **Others include other institutional and non-institutional non-promoter investors
Sector allocation of the Nifty 50 universe for key shareholders (December 2023): The
table below shows the sector allocation for key stakeholders in Nifty 50 companies as of
December 2023. The concentration of Government ownership in Financials, Energy and
Utilities sector is much higher at 91.1% in the Nifty 50 universe vs 75.2% in the broader
listed universe. The Consumer sector—Staples and Discretionary, and Communication
Services together accounted for 72.2% of the exposure of foreign promoters to the Nifty
50 companies as of December 2023.
In the case of institutional investors, DMFs have a much higher exposure to Financials at
38% in the Nifty 50 Index vs. 29.3% in the NSE-listed universe, even as the exposure in
both universes declined for the fourth consecutive quarter, translating into a total drop of
nearly 5pp in 2023. DMF exposure to Financials within Nifty50 companies is now 6.7pp
lower than the two-decadal high share of 44.8% just prior to the pandemic in the quarter
ending December 2019. FPIs’ portfolio allocation to Financials within the Nifty 50
universe declined as well for the second consecutive quarter, and now stands slightly
higher than DMF share at 41.5%.
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Market Pulse
Table 9: Sector allocation of the Nifty 50 universe for key stakeholders (December 2023)
% Indian Govt FPIs* & promoter
promoters MFs Investors
Energy 17.0 35.4 0.0 9.9 11.0 15.6 5.9 12.1
Financials 13.6 30.6 1.7 38.0 41.5 22.7 35.5 25.8
Health Care 5.6 0.0 1.8 5.1 3.7 2.9 4.6 3.6
Industrials 5.7 0.1 8.6 5.4 4.8 8.4 5.2 8.1
Materials 12.2 0.2 1.5 5.8 5.6 6.6 26.1 9.4
Utilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
DMFs’ exposure to Financials continued to decline: Even as DMFs retained their OW

DMFs maintained an OW
position on Financials, the extent of their OW position came off significantly last year. stance on Financials, albeit
Besides Financials, DMFs maintained their positive stance on Healthcare and with a reduced extent, and
Communication Services for 14 and 16 quarters in a row respectively and strengthened remained negative on India’s
their OW position on Utilities to 13-quarter highs. In fact, DMFs have consistently consumption outlook and
maintained their OW stance on Utilities for over seven years now. DMFs perennial commodity linked sectors,
negative view on India’s consumption outlook is reflected in their underweight position viz., Energy and Materials.
on Consumer Staples for more than eight years now and a neutral stance on Consumer
Discretionary with a negative bias. They also remained negative on commodity sectors
including Energy and Materials, partly reflecting the impact of reduced global demand.
Among other sectors, DMFs maintained their neutral position on Industrials and
Information Technology with a negative bias.
Figure 48: DMF sector allocation of the Nifty 50 universe (September 2023 vs. December 2023)
% DMF sector allocation of the Nifty 50 universe
38.0
Financials
39.1
12.8
IT
13.0
9.9
Energy
9.6
7.9
Cons. Disc.
7.7
6.4
Cons. Staples Dec-23
6.5
5.8
Materials Sep-23
5.5
5.4
Industrials
5.0
5.1
Healthcare
5.4
4.6
Utilities
4.1
4.0
Comm Svcs.
4.0
0 5 10 15 20 25 30 35 40 45
32/239
Market Pulse
Figure 49: DMF sector allocation of the Nifty 50 universe over the last five years
Comm Svcs. Cons. Disc. Cons. Staples Energy Financials
Healthcare Industrials IT Materials Utilities
100
5.1 4.6
7.1 5.8
90
12.0 12.8
80
5.5 5.4
70 3.3 5.1
60
50
40.3 38.0
40
30
9.9
20 11.3
6.4
6.2
10
7.9
6.8
0 4.0
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 50: DMF sector allocation vs sector weight in Figure 51: DMF sector-wise OW/UW in Nifty 50 relative
Nifty 50 (December 2023) to sector weight in the index (December 2023)
% DMF sector allocation vs. Nifty 50 weight bps DMF sector-wise OW/UW in Nifty 50
Comm 2.8
Svcs. 4.0 Cons. Staples -275
-279
2.7
Utilities -163
4.6 Energy -153
4.0 Sector weight in Nifty 50 Sep-23
Healthcare Materials -134
5.1
-125
DMF shareholding in Nifty 50 Dec-23
6.0
Industrials IT -73
5.4 -78
7.1 -91
Materials Industrials
5.8 -59
Cons. 9.2 -4
Staples 6.4 Cons. Disc. -16
8.1 124
Cons. Disc. Healthcare
7.9 114
11.4 Comm Svcs. 133
Energy 126
9.9
13.6 Utilities 168
IT 193
12.8
35.3 Financials 311
Financials 278
38.0
0 10 20 30 40 -400 -300 -200 -100 0 100 200 300 400

33/239
Market Pulse
Figure 52: DMF vs Nifty 50—Sector-wise OW/UW trend (bps)

bps Sector-wise OW/UW trend for DMFs vs. Nifty 50 Index
Communication Services Consumer Discretionary Consumer Staples Energy

Financials Health Care Industrials Information Technology
2,000
Materials Utilities
1,500
1,000
500
-500
-1,000
-1,500
-2,000
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
FPIs maintained their outsized OW on Financials and UW on Consumer Staples:

FPIs maintained their OW
Notwithstanding reduced share of Financials in the aggregate FPI holding in the Nifty 50
view on Financials, and
companies in the December quarter owing to the sector’s relative underperformance, remained negative on
they continued to play India story via Financials with a perennially outsized bet on the Consumer Staple, Industrials
sector. In fact, Financials is the only sector FPIs have been OW on for the sixth quarter in and Materials.
a row. Among other sectors, FPIs maintained their strong negative view on Consumer
Staples, an UW stance on Real Estate and Industrials, albeit incrementally less so and a
neutral position on Consumer Discretionary, Healthcare, Information Technology, Energy,
Utilities and Communication Services.
Figure 53: FPI sector allocation of the Nifty 50 universe (September 2023 vs. December 2023)
% FPI sector allocation of the Nfity 50 universe
Financials 41.5
42.4
IT 13.3
13.5
Energy 11.0
11.0
Cons. Disc. 8.2

7.9
Cons. Staples 5.8 Dec-23

5.9
5.6 Sep-23
Materials 5.3
Industrials 4.8
4.5
Healthcare 3.7
3.8
Comm Svcs. 3.3

3.1
Utilities 2.8
2.6
0 5 10 15 20 25 30 35 40 45
34/239
Market Pulse
Figure 54: FPI sector allocation of the Nifty 50 universe over last five years
% FPI sector allocation of the Nifty 50 universe
Comm Svcs. Cons. Disc. Cons. Staples Energy Financials
Healthcare Industrials IT Materials Utilities
100 2.7 2.8
5.6 5.6
90
13.6 13.3
80
2.8 4.8
1.8
3.7
70
60
50 47.4 41.5
40
30
11.0
20 10.8
5.8
5.0
10
7.4 8.2
2.9 3.3
0
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 55: FPI sector allocation vs sector weight in Nifty Figure 56: FPI sector-wise OW/UW in Nifty 50 relative
50 (December 2023) to sector weight in the index (December 2023)
% FPI sector allocation vs. Nifty 50 weight bps FPI sector-wise OW/UW in Nifty 50
Utilities 2.7 -341

2.8 Cons. Staples -337
Comm Svcs. 2.8 -150
3.3 Materials -143
4.0 Sep-23
Healthcare Industrials -143
3.7 -113
Sector weight in Nifty 50 Dec-23
Industrials 6.0 -19
4.8 FII shareholding in Nifty 50 Energy -37
Materials 7.1 -27

5.6 IT -33
Cons. Staples 9.2 Healthcare -35

5.8 -29
Cons. Disc. 8.1 Utilities 14

8.2 6
11.4 Cons. Disc. 14

Energy 11
11.0
13.6 Comm Svcs. 42
IT 52
13.3
35.3 Financials 639
Financials 625
41.5
0 10 20 30 40 50 -500 -250 0 250 500 750
35/239
Market Pulse
Figure 57: FPI vs Nifty 50—Sector-wise OW/UW trend (bps)

bps Sector-wise OW/UW trend for FPIs vs. Nifty 50 Index

2,000 Materials Utilities
1,500
1,000
500
-500
-1,000
-1,500
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Jun-16
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Nifty 500 ownership trends

Ownership pattern of the Nifty 500 universe (December 2023)
Promoter stake in the Nifty 500 universe inched up for the third quarter in a row: Total Total promoter stake in the
promoter holding in the Nifty 500 universe increased by 29bps QoQ to a four-quarter high Nfity500 universe inched up
of 50.1%. This was once again driven by an increase in the ownership of Government to 50.1%, with an increase
promoters by 84bps QoQ to 10.2%, the highest in 25 quarters, on the back of relative in Govt. share partially offset
by a drop in foreign and
outperformance of PSU companies in the quarter. This was partially offset by moderation
private Indian promoter
in the share of both foreign (-38bps QoQ to a nine-year low of 8.1%) as well as Indian share.
private promoters (-18bps QoQ to 31.8%). Nearly 138 out of 500 companies saw the
share of private Indian promoters falling in the quarter gone by.
Institutional ownership of the Nifty 500 universe moderated in the December

quarter: Institutional share in the Nifty 500 total market cap declined for the second DMF ownership in the Nifty
reached fresh all-time highs
quarter in a row, dipping by 19bps QoQ to 36.9%. That said, the share is still 2.5pp higher
in the December quarter.
than the post-pandemic low of 34.4% in the quarter ending March 2022. DMF ownership
inched up by 12bps QoQ to a fresh all-time high of 9.3% in the December quarter. On the
other hand, FPI ownership dipped by 10bps QoQ to near 12-year lows of 19.4%. Banks,
Financial Institutions and Insurance companies’ share moderated for the third quarter in
a row by 11bps QoQ to 6%.
Individual investors’ ownership in the Nifty 500 universe moderated: Individual

investors’ ownership in the Nifty 500 companies moderated marginally by 7bps QoQ to
8.7%, in line with net outflow from individual investors in the quarter gone by. Their share
in the Nifty 500 universe is now 36bps lower than the near 14-year high share of 9.1% in
March 2022. The drop from the peak has been fairly modest, indicating sustenance of
retail interest in the equity market despite heightened financial market volatility.
36/239
Market Pulse
Figure 58: Nifty 500: Ownership pattern by total market cap (%)
Other non-institutional
Individual Non-promoter Individual Other non-
Non-promoter non-promoters, 2.1
investors, 8.8 corporate, 1.7 investors, 8.7 institutional non-
corporate, 1.7
promoters, 2.1
Other institutional Other institutional
non-promoters, non-promoters, 2.3
2.4
Private Indian
Private Indian Banks, FIs &
promoters,
Banks, FIs & promoters, Insurance, 6.0
31.8
Insurance, 32.0
6.1
FPIs, 19.5 Govt., 9.8 FPIs, 19.4 Govt., 10.7
DMFs, 9.1 Foreign DMFs, 9.3 Foreign

promoters, promoters,
8.5 8.1
Table 10: Nifty 500: Ownership trend across key stakeholders by total market cap over last the three years
Private Indian Foreign Domestic Banks, FIs & Non-promoter Individual
% Govt. FPIs * Others**
promoters promoters MFs Insurance corporate Investor
Mar-21 34.3 6.2 9.4 7.4 5.3 22.2 3.0 8.6 3.7
Jun-21 34.5 6.6 9.2 7.4 5.2 21.6 3.0 8.8 3.7
Sep-21 35.3 6.2 8.9 7.5 4.6 21.5 2.9 8.8 4.2
Dec-21 35.8 6.0 8.8 7.8 4.6 20.9 2.8 9.0 4.3
Mar-22 35.5 6.2 8.6 8.0 4.7 20.2 3.4 9.1 4.4
Jun-22 35.0 6.2 9.1 8.3 5.0 19.8 3.4 9.0 4.1
Sep-22 34.4 7.6 9.5 8.2 6.0 19.5 2.6 8.5 3.7
Dec-22 33.5 8.8 9.0 8.4 6.1 19.8 1.6 8.5 4.3
Mar-23 32.4 8.6 8.9 9.0 6.3 20.0 1.6 8.7 4.6
Jun-23 32.4 8.7 8.7 8.9 6.2 20.0 1.7 8.7 4.6
Sep-23 32.0 9.8 8.5 9.1 6.1 19.5 1.7 8.8 4.5
Dec-23 31.8 10.7 8.1 9.3 6.0 19.4 1.7 8.7 4.4
QoQ change -18bps 87bps -38bps 12bps -11bps -10bps -1bps -7bps -14bps
non-promoters.
In terms of floating stock, FPI share in the Nifty 500 Index remained largely unchanged
at 38.9%. FPI stake is now 8.6pp lower than the peak share over the last 22 years. On the
other hand, DMFs increased their share in the Nifty 500 floating market cap by 35bps QoQ
to a new record high level of 18.5% in the December quarter. Individual ownership
marginally dipped by 5bps QoQ to 17.4%, 12.3pp below the peak share over the entire
analysis period (March 2001 onwards).
37/239
Market Pulse
Figure 59: Nifty 500: Ownership pattern by free float market cap (%)
Non-
Other non- promoter Non-promoter
Other non-institutional
institutional non- Govt., 1.0 Govt., 1.0
non-promoters, 4.2
promoters, 4.3
DMFs, 18.2 Individual DMFs, 18.5
Individual investors, 17.4
investors, 17.5
Non-promoter
Non-promoter corporate, 3.4
corporate, 3.4
Other
Other institutional institutional non-
non-promoters, 4.7 promoters, 4.6
Banks, FIs &
Banks, FIs & FPIs, 38.9 FPIs, 38.9
Insurance,
Insurance, 12.1
11.9
Table 11: Nifty 500: Ownership trend across key stakeholders by free float market cap over the last three years
% Banks, FIs & Non-promoter Individual
Domestic MFs FPIs* Others**
Insurance corporate Investor
Mar-21 14.6 10.5 44.0 5.9 17.0 8.0
Jun-21 14.9 10.3 43.2 6.0 17.5 8.1
Sep-21 15.1 9.3 43.2 5.8 17.6 8.9
Dec-21 15.6 9.4 42.0 5.6 18.2 9.2
Mar-22 16.0 9.4 40.4 6.8 18.2 9.3
Jun-22 16.7 10.0 39.6 6.9 18.1 8.7
Sep-22 16.9 12.3 39.8 5.2 17.5 8.3
Dec-22 17.1 12.5 40.3 3.3 17.2 9.7
Mar-23 17.8 12.5 39.4 3.1 17.2 10.0
Jun-23 17.6 12.2 39.6 3.3 17.1 10.1
Sep-23 18.2 12.1 38.9 3.4 17.5 10.0
Dec-23 18.5 11.9 38.9 3.4 17.4 9.8
QoQ change 35bps -15bps 2bps 0bps -5bps -17bps
non-promoters.
Long-term ownership trend of the Nifty 500 universe: Overall promoter ownership in
FPI ownership in Nifty 500
Nifty 500 has also seen a steady decline since 2009 until March 2019, albeit at a slower
saw a steady rise post the
pace than the Nifty 50 Index, entirely led by a sharp dip in Government ownership, while GFC until 2015, hovered in
the share of private Indian promoters has significantly increased during this period. the 21-23% range until
Promoter share, however, has been inching up since 2019, barring a dip in FY23, aided 2021 only to drop
by higher Indian promoter share—with public share rising after the LIC listing and private marginally after that.
share falling since 2021 onwards, while foreign share has remained fairly steady. DMF share in Nifty 500 has
been gradually rising since
DMF ownership in Nifty 500 saw a gradual increase beginning 2014 to reach the highest 2014, barring a dip in FY21,
level in last two decades by December 2019. The fiscal year FY21, however, saw some and is currently slightly
dip in DMF share, partly reflecting moderation in SIP inflows post the COVID-19 lower than peak high levels.
pandemic as well as high redemption pressures. This, however, was more than reversed
in the subsequent years, thanks to a surge in retail inflows via the SIP route. FPI
ownership in the Nifty 500 universe improved meaningfully post the GFC until 2015 but
has since hovered between 21-23% until 2021. FPI share saw a steady decline over the
subsequent few quarters only to rise modestly from the end of 2022, weighed by
38/239
Market Pulse
dampened sentiments owing to recurring COVID variants, followed by the Russia-Ukraine

war, sky-rocketing inflation, steep rate hikes by global central banks and China slowdown.
This led to flight of capital away from riskier asset classes including Indian equities during
this period, even as the second half of 2022 onwards saw FPIs coming back. Banks,
financial institutions, and insurance, however, have been steadily reducing their exposure
to Indian equities over the last decade until 2021 only to see a meaningful spike last year,
which has continued up to the most recent quarter as well.
Retail ownership in the Nifty 500 Index fell sharply from the north of 16% in 2001 to sub-
8% in 2013, hovered around these levels until December 2019 only to rise steadily until
FY22. The following five quarters, however, saw a slight dip in retail share, mimicking the
trend seen in their trading activity during this period, with a slight uptick in the quarter
gone by.
Figure 60: Nifty 500: Long-term ownership trend across key stakeholders by total market cap
% Ownership trend of Nifty 500 universe key stakeholders by total market cap
Promoters DMFs FPIs
70 Banks, FIs & Insurance Non-promoter corporate Individual investors
60
50
40
30
20
10
0
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-21
Jun-22
Jun-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Jun-14
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Jun-20
Dec-20
Dec-21
Dec-22
Dec-23
Figure 61: Total promoter ownership trend of the Nifty Figure 62: Indian and foreign promoter ownership trend
500 universe by total market cap of the Nifty 500 universe by total market cap
% % Govt. Private Indian promoters
Total promoter ownership trend of Nifty 500 by total
market cap Foreign promoters
60
40
58
35
56
54 30
52 25
50 20
48
15
46
10
44
42 5
40 0
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
39/239
Market Pulse
Figure 63: DMF ownership trend of the Nifty 500 Figure 64: FPI ownership trend of the Nifty 500 universe
universe by total market cap by total market cap
% DMF ownership trend of Nifty 500 by total market cap % FPI ownership trend of Nifty 500 by total market cap
10 25
9 23
8 21
19
7
17
6 15
5 13
11
4
9
3 7
2 5
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
the Nifty 500 universe by total market cap universe by total market cap
% Banks, FIs & insurance ownership trend of Nifty 500 by % Individual investor ownership trend of Nifty 500 by total
total market cap market cap
10 18
9 16
14
8
12
7
10
6
8
5 6
4 4
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Our long-term ownership analysis on the floating stock of the Nifty 500 Index also shows
that while DMF ownership is currently at the highest level since 2001, current FPI
ownership is 8.6pp lower than the peak of 47.5% observed in the quarter ending
September 2014.
40/239
Market Pulse
Figure 67: Nifty 500: Long-term ownership trend across key stakeholders by free float market cap
% Ownership trend of Nifty 500 universe key stakeholders by floating stock
50
45
40
35
30
25
20
15
10
0
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-01
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 68: DMF ownership trend of the Nifty 500 Figure 69: FPI ownership trend of the Nifty 500 universe
universe by free float market cap by free float market cap
% DMF ownership trend of Nifty 500 by free float market % FPI ownership trend of Nifty 500 by free float market
20 cap cap
54
18 49
16 44
39
14
34
12 29
10 24
19
8
14
6
9
4 4
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
41/239
Market Pulse
the Nifty 500 universe by free float market cap universe by free float market cap
% Banks, FIs & Insurance ownership trend of Nifty 500 by % Individual investor ownership trend of Nifty 500 by free
free float market cap float market cap
20 34
18
29
16
24
14
19
12
14
10
8 9
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Sector-wise ownership of the Nifty 500 universe (December 2023): As of December

DMF share within the Nifty
2023, Real Estate sector had the highest promoter shareholding at 67.0% (-2bps QoQ),
500 universe remained
followed by Utilities at 59.7% (+60bps QoQ) and Materials at 55.6% (+24bps QoQ).
steady or rose on a QoQ basis
Consumer Staples recorded the largest increase in promoter stake (+58bps QoQ to across all sectors.
50.2%), while Consumer Discretionary recorded the biggest decline of 40bps QoQ to
FPIs have remained the
38.5%. biggest non-promoter owners
of Financials within the Nifty
Utilities remained the top sector in terms of Government ownership, even as it recorded
500 universe at 27.7%.
a 77bps dip to 25%. Financials stood second with a steep 1.6pp QoQ increase in
Government share to a near ten-year high of 21.3% on the back of relative
outperformance of PSU banks as compared to the broader banking sector in the quarter
yet again. This was followed by Energy with a 1.4pp QoQ increase to 19.9%, and
Industrials at 13.2% (+1.6pp QoQ).
DMF share increased in the Nifty 500 universe across all sectors. Health Care overtook
Financials to become the sector with the highest DMF ownership, registering a 61bps
QoQ increase to 11.6% compared to 11.5% in Financials (+10bps QoQ). This was
followed by Consumer Discretionary at 11%(+12bps QoQ), Communication Services
(10.4%, +15bps QoQ) and Industrials (9.2%, -2bps QoQ).
FPIs remained the biggest non-promoter owners of Financials at 27.7%, registering a

marginal decline of 8bps QoQ. Communication Services stood second in terms of FPI
ownership, with a 13bps QoQ rise to 19.9%, followed by Real Estate (19.6%, -11bps QoQ)
and Consumer Discretionary (19.2%, +32bps QoQ).
42/239
Market Pulse
Figure 72: Nifty 500: Sector-wise ownership pattern across key stakeholders (December 2023)
% Sector-wise ownership of the NSE 500 universe
100 2.3 2.4 3.2 2.3
4.8 4.2 4.3 5.4 4.4 3.7
5.2 9.2 7.3 5.4
8.5 8.7 8.1
90 5.2 9.8 10.5 10.4
10.1 8.7 4.9
4.2 6.9 19.6
5.9
80 4.2 5.5 5.2
19.9 8.6 16.1
19.2 17.6 19.0 12.9
70 19.2 15.0 6.7
27.7 7.2
14.4
60 10.4 7.5
7.1 11.6 9.2 8.3 6.6
11.0 6.5 7.4
50 4.2
14.1 8.8
11.5 15.2 5.8
10.5 19.9
40 2.5 25.0
1.5
2.8 27.1
66.0
30 13.2
21.3
48.8
20 42.9 43.6
39.1
35.2 34.5
29.0
23.1 24.6
10 17.8
0
Comm Svcs. Cons. Disc. Cons. Staples Energy Financials Healthcare Industrials IT Materials Reality Utilities
**Others include other institutional and non-institutional non-promoter investors.
Sector allocation of the Nifty 500 universe for key stakeholders (December 2023): The
table below shows the sector allocation for key stakeholders in Nifty 500 companies as
of December 2023. Nearly 90% of the Government ownership in the Nifty 500 companies
remained concentrated in Financials, Energy, Industrials and Utilities sectors, even as the
ownership dropped by 38bps QoQ. This was slightly higher than Government exposure to
these four sectors in the overall listed universe (88.7%), but marginally lower than 91.2%
in the Nifty 50 Index. In the case of institutional investors, DMFs have a lower allocation
to Financials at 31.0% compared to FPIs at 30%; this gap increased slightly in the
December quarter. While both DMFs and FPIs reduced their allocation to Financials in the
December quarter, the drop was slightly higher for FPIs. That said, the gap still remains
much lower than the average 8.8% over the last 22-year period.
Table 12: Sector allocation of the Nifty 500 universe for key stakeholders (December 2023)
% Indian Govt FPIs* & promoter
promoters MFs Investors
Energy 8.9 15.3 0.3 6.3 8.1 12.0 2.7 6.9
Financials 13.6 48.4 4.5 30.0 34.5 24.1 24.5 23.6
Health Care 7.7 0.0 6.2 7.2 5.2 4.0 6.5 5.7
Industrials 8.4 13.4 20.3 10.8 8.4 10.0 9.5 13.1
Materials 14.9 5.9 9.9 8.8 7.2 9.5 18.2 12.9
Real Estate 3.3 0.0 0.2 1.2 1.6 0.4 0.6 0.7
Utilities 5.0 12.7 4.4 4.2 4.5 4.5 11.0 3.4
Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
43/239
Market Pulse
DMFs turned incrementally negative on Financials and Consumer Discretionary: After

DMFs continued to cut
turning neutral on Financials in June 2023, DMFs cut their exposure further for the for the exposure to Financials and
fourth quarter in a row, a part of which is attributed to the sector’s underperformance and remained neutral on
a cautious view in the light of rising cost of funds and shrinking margins. DMFs Industrials for the second
strengthened their OW view on Healthcare, with the extent of OW stance rising to four- consecutive month after
year high levels. They also maintained an OW stance on Consumer Discretionary, albeit perennial over weightage to
incrementally less so, but retained a strong negative view on Consumer Staples amid the sector.
weak rural demand recovery and fading margin tailwinds. Among other sectors, DMFs
maintained a neutral stance on Industrials and Communication Services with a positive
bias, and on Information Technology and Materials with a negative bias.
Figure 73: DMF sector allocation of the Nifty 500 universe (September 2023 vs. December 2023)
Financials 30.0
30.9
Cons. Disc. 11.9

11.9
Industrials 10.8
10.6
IT 9.9
9.9
Materials 8.8
8.7
Healthcare 7.2 Dec-23

7.0
Energy 6.3 Sep-23

6.2
Cons. Staples 6.3

6.5
Utilities 4.2
3.7
Comm Svcs. 3.5

3.6
Realty 1.2
1.0
0 5 10 15 20 25 30 35
Figure 74: DMF sector allocation of the Nifty 500 universe over last five years
100
4.3 4.2
90 9.6 8.8
80 9.0 9.9
70 10.4 10.8
6.0
60 7.2
50
32.8 30.0
40
30
7.7 6.3
20 6.3
6.9
10 11.9
10.6
0 2.4 3.5
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
44/239
Market Pulse
Figure 75: DMF sector allocation vs sector weight in Figure 76: DMF sector-wise OW/UW in Nifty 500 relative
Nifty 500 (December 2023) to sector weight in the index (December 2023)
% DMF sector allocation vs. Nifty 500 sector weight bps DMF sector-wise OW/UW in Nifty 500
Cons. Staples -204

Realty 1.1 -207
1.2
Energy -161
Comm Svcs. 2.8
-150
3.5
Materials -84
Utilities 4.1 Sep-23
4.2 -86
8.4 Sector weight in Nifty 500 IT -82 Dec-23

Cons. Staples 6.3 -74
DMF shareholding in Nifty 500 4
Energy 7.8 Realty
6.3 5
5.6 Utilities 16
Healthcare 7.2 12
9.6 Financials 55
Materials 8.8 22
10.6 Industrials 71
IT 9.9 75
10.0 Comm Svcs. 76

Industrials 10.8 78
10.4 Cons. Disc. 175
Cons. Disc. 11.9 153
Financials 29.8 133

30.0
Healthcare
160
0 10 20 30 40 -300 -200 -100 0 100 200

Figure 77: DMF vs Nifty 500—Sector-wise OW/UW trend (bps)

bps Sector-wise OW/UW trend for DMFs vs. Nifty 500 Index
1,500 Materials Real Estate Utilities
1,000
500
-500
-1,000
-1,500
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
45/239
Market Pulse
FPIs’ trimmed their outsized bet on Financials and remained negative on India’s
FIIs maintained their
consumption story: FPIs maintained their perennial outsized OW bet on Financials, albeit outsized bet on Financials
with an incrementally reduced exposure to the sector. In line with the Nifty 50 Index, no and remained bearish on the
sector other than Financials within the Nifty 500 universe had an OW position of FPIs India’s consumption and
compared to the Index in the December quarter. Among other sectors, FPIs remained UW investment story via UW
on Information Technology, Industrials and Consumer Staples, and maintained their positions on Consumer
neutral stance on Consumer Discretionary, Communication Services, Energy, Health Care, Staples and Industrials.
Real Estate and Utilities.
Figure 78: FPI sector allocation of the Nifty 500 universe (September 2023 vs. December 2023)
% FPI sector allocation of the Nfity 500 universe
Financials 34.5
35.4
IT 10.7
11.0
Cons. Disc. 9.9

9.7
Industrials 8.4
8.1
Energy 8.1
8.2
Materials 7.2
7.1
Dec-23 Sep-23
Cons. Staples 6.7
6.8
Healthcare 5.2
5.2
Utilities 4.5
4.0
Comm Svcs. 3.2

3.2
Realty 1.6
1.3
0 5 10 15 20 25 30 35 40
Figure 79: FPI sector allocation of the Nifty 500 universe over last five years
% FPI sector allocation of the Nifty 500 universe
100 3.0 4.5
6.4
90 7.2
11.3
80 10.7
5.4
4.6 8.4
70
5.2
60
50 40.5
34.5
40
30
8.4 8.1
20
7.7 6.7
10
9.1 9.9
0 2.9 3.2
Sep-19
Sep-20
Sep-21
Sep-22
Sep-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
46/239
Market Pulse
Figure 80: FPI sector allocation vs sector weight in Nifty Figure 81: FPI sector-wise OW/UW in Nifty 500 relative
500 (December 2023) to sector weight in the index (December 2023)
% FPI sector allocation vs. Nifty 500 sector weight bps FPI sector-wise OW/UW in Nifty 500
Realty 1.1
1.6 Materials -242
-243
Comm Svcs. 2.8
3.2 Cons. Staples -171
-168
Utilities 4.1
4.5 Industrials -184 Sep-23
Sector weight in Nifty 500 -165
Healthcare 5.6 -48 Dec-23
5.2 Cons. Disc. -48
FII shareholding in Nifty 500
Cons. Staples 8.4 -45
6.7 Healthcare -40
Materials 9.6 21
7.2 IT 15
Energy 7.8 43
8.1 Energy 28
Industrials 10.0 Utilities 47
8.4 38
Cons. Disc. 10.4 Comm Svcs. 40

9.9 45
IT 10.6 Realty 43
10.7 49
Financials 29.8 Financials 497

34.5 473
0 10 20 30 40 -400 -200 0 200 400 600

Figure 82: FPI vs Nifty 500—Sector-wise OW/UW trend (bps)

bps Sector-wise OW/UW trend for FPIs vs. Nifty 500 Index

2,000 Materials Real Estate Utilities
1,500
1,000
500
-500
-1,000
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Jun-11
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
47/239
Market Pulse
Ownership concentration analysis

Institutional investor allocation to Nifty50 moderated for the third quarter in a row…:
The share of Nifty50
The charts below depict how ownership for all institutional investor categories in the total companies in overall
market cap has changed in the December quarter vis-à-vis the previous quarter. institutional investments has
fallen by 5.9pp in the first
Institutional investments historically have remained concentrated to Nifty50 companies.
three quarters of FY24 to a
In the December quarter, however, share of Nifty50 companies in overall institutional 16-year low of 63.2% as of
investments fell for the third quarter in a row by 130bps QoQ to a 16-year low of 63.2%. December 2023.
This translates into a 5.9pp drop in the share of Nifty50 companies in overall institutional
holding in the NSE listed universe in the first three quarters of this fiscal. This is a result
of a combination of incrementally higher allocation to mid- and smaller companies during
this period owing to higher inflows in such funds as well as relative outperformance of
such companies vis-à-vis the large-cap universe. While the Nifty 50 Index generated a
return of 10.7% in the December quarter, Nifty Midcap 50 and Nifty Smallcap 50 Indices
gained 13.2% and 21.2% respectively during this period. This is also evident in a steep
6.1pp drop in the share of Nifty 50 market cap in the total market cap of NSE listed
companies in the first three quarters of FY24 to two decadal low of 47.6%.
Among institutional investors, Banks, Financial Institutions and Insurance companies had
the highest concentration to Nifty 50 companies at more than 18-year low of 68.6%,
down 4.4pp in 9MFY24, followed by FPIs at a 16-year low of 65.7% (-6.4pp in 9MFY24)
and DMFs at a 23-quarter low of 55.1% (-6.0pp). Notably, all institutional investor
categories saw their share in the listed companies excluding Nifty 500 falling marginally
in the December quarter.
Figure 83: Institutional share of total market cap (September 2023 vs. December 2023)
% Institutional ownership of total market cap across universes
Nifty 50 Top 10% listed cos by market cap Nifty 500 All listed All listed ex Nifty 500
30
25.2 25.1
25
20.8 20.7
19.5 19.4
20 18.4 18.2
15
10.1 10.2
10 8.8 9.1 8.7 8.9 9.3 8.8
8.1 8.0
6.6 6.1 6.4 6.0
5.6 5.7 5.5 5.6
4.3 4.2
5
1.5 1.4
0
FPI DMFs Banks, FIs & Insurance FPI DMFs Banks, FIs & Insurance

Source: CMIE Prowess, NSE *FPI ownership includes ownership through depository receipts held by custodians.
48/239
Market Pulse
Figure 84: Institutional ownership of floating stock (September 2023 vs. December 2023)
% Institutional ownership of free float market across universes
Nifty 50 Top 10% listed cos by market cap Nifty 500 All listed All listed ex Nifty 500
50
43.2 43.3
45 41.2 41.2
38.9 38.9
40 37.1 37.0
35
30
25
20 17.317.418.217.6 17.617.818.517.9
13.2 14.013.0 13.1 13.812.8
15 12.111.5 11.911.3
10.1 10.1
10
3.4 3.3
5
0
FPI DMFs Banks, FIs & Insurance FPI DMFs Banks, FIs & Insurance
September 2023 December2023

…And so is for individual investors…: The drop in the share of Nifty 50 companies in the
overall investments of individuals has fallen by a higher quantum this fiscal year. In fact,
the share of Nifty 50 companies in the overall direct investment portfolio of individual
investors at a 23-quarter low of 40.4% in the December quarter, down 7.4pp in the first
three quarters of FY24, is much lower than the share of these companies in the overall
listed space (47.6%). This indicates incrementally higher allocation to mid and smaller
companies. Individuals owned 19.6% of the total market cap of listed companies
excluding the Nifty 500 universe as of December end, marginally lower than 20.3% in the
previous quarter. In terms of floating stock, this translates into a share of 46.8%.
Figure 85: Individual share of total market cap Figure 86: Individual ownership of floating stock
(September 2023 vs. December 2023) (September 2023 vs. December 2023)
% Individual investors' ownership of total market cap % Individual investors' ownership of free float market
across universes across universes
Nifty 50
Nifty 50
Top 10% listed cos by market cap
Top 10% listed cos by market cap
Nifty 500
Nifty 500
All listed
All listed
All listed ex Nifty 500
25 All listed ex Nifty 500 50 47.5 46.8
20.3
19.6
20 40
15 30
9.7 9.7 19.5 19.6

10 8.3 8.1
8.8
8.2 8.7 20 17.5 17.4
8.0 15.9 15.9
14.3 14.1
5 10
0 0
Sep-23 Dec-23 Sep-23 Dec-23
49/239
Market Pulse
…Even as large caps still account for a disproportionate share of individuals’

portfolio: The tables below summarise the distribution of individuals’, DMFs’ and FPIs’
portfolio across different market capitalisation deciles within the NSE listed universe.
While the share of large-cap companies in the institutional as well as individuals’ portfolio
has been declining over the last few quarters, they still contribute to a disproportionate
share of their portfolios. For instance, individual investors have nearly 65% of their
portfolio invested in the top decline companies by market capitalisation (about 200), with
the next decile contributing another 14%. Notably, the bottom 50% of the NSE listed
companies by market capitalisation account for a mere 4.1% of the individuals’ total
holding, even as the share has nearly tripled since the pandemic. While a large part of this
is attributed to a significant rally seen in smaller companies during the last few years, it is
also due to incrementally higher allocation of smaller companies in the individuals’
portfolio. This is reflected in the widening gap between the share of the top decline
companies in the overall market capitalisation and the share of individual investments in
such companies.
While FPIs have nearly 90% of their investments made in the top 200 companies by
market capitalisation (top decile), DMFs have a nearly 10pp lower share of such
companies in their investment portfolio. That said, the allocation of the top decile
companies for both DMFs and FPIs is higher than the share of such companies in the
overall market capitalisation. Banks, Financial Institutions and Insurance companies
have an even higher allocation to larger companies, with 99% of their investments held
in the top three deciles.
Table 13: Market cap decile-wise share of individuals' portfolio in NSE listed companies
FY20 FY21 FY22 FY23 FY24
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
1 79.6 75.1 76.0 73.6 73.8 69.7 70.7 69.0 69.6 70.0 67.8 69.3 69.4 67.3 65.7 65.1
2 10.3 12.5 11.9 12.4 12.7 13.1 13.3 14.1 13.5 13.3 13.3 13.0 12.5 13.1 14.0 14.1
3 5.0 5.2 5.7 6.3 6.3 7.6 7.3 6.9 7.0 6.9 7.4 7.3 7.5 7.8 8.6 8.6
4 2.3 3.1 3.0 3.4 3.4 4.3 4.3 4.1 4.1 4.1 4.5 4.3 4.3 4.7 4.8 4.9
5 1.4 1.9 1.7 2.1 1.8 2.5 2.2 2.7 2.7 2.6 3.2 2.7 2.8 3.1 3.1 3.1
6 0.7 1.0 0.8 1.1 1.0 1.4 1.2 1.6 1.5 1.5 1.8 1.6 1.7 1.9 2.0 2.0
7 0.4 0.6 0.5 0.6 0.5 0.8 0.6 0.8 0.9 0.9 1.1 0.9 1.0 1.1 1.0 1.1
8 0.2 0.3 0.2 0.3 0.2 0.4 0.3 0.5 0.5 0.5 0.6 0.5 0.5 0.6 0.5 0.6
9 0.1 0.2 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
50/239
Market Pulse
Table 14: Distribution of total value held by individual investors across market capitalization deciles
Rs FY20 FY21 FY22 FY23 FY24
lakh
crore Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
1 7.5 9.0 10.5 12.3 13.5 14.9 17.0 17.5 17.6 16.1 16.7 17.7 16.5 18.4 20.1 22.6
2 1.0 1.5 1.6 2.1 2.3 2.8 3.2 3.6 3.4 3.0 3.3 3.3 3.0 3.6 4.3 4.9
3 0.5 0.6 0.8 1.0 1.2 1.6 1.8 1.8 1.8 1.6 1.8 1.9 1.8 2.1 2.6 3.0
4 0.2 0.4 0.4 0.6 0.6 0.9 1.0 1.1 1.0 0.9 1.1 1.1 1.0 1.3 1.5 1.7
5 0.1 0.2 0.2 0.3 0.3 0.5 0.5 0.7 0.7 0.6 0.8 0.7 0.7 0.8 0.9 1.1
6 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.6 0.7
7 0.0 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 0.3 0.3 0.4
8 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.2 0.2 0.2
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 9.4 12.0 13.8 16.8 18.3 21.4 24.0 25.4 25.3 22.9 24.7 25.6 23.8 27.4 30.5 34.7
Table 15: Market cap decile-wise share of DMFs’ portfolio in NSE listed companies
1 87.1 85.2 86.1 84.2 84.9 82.0 83.7 82.0 82.8 82.7 80.0 83.0 81.5 79.6 79.8 80.0
2 9.8 10.4 10.2 11.0 10.8 12.0 11.7 12.4 11.8 12.0 13.4 11.6 12.7 13.8 13.6 13.3
3 2.2 3.0 2.7 3.3 3.1 3.9 3.2 3.7 3.5 3.6 4.2 3.7 3.9 4.4 4.3 4.3
4 0.7 1.0 0.8 1.1 1.0 1.6 1.1 1.4 1.4 1.1 1.6 1.2 1.4 1.7 1.8 1.8
5 0.2 0.3 0.2 0.3 0.2 0.4 0.3 0.4 0.4 0.4 0.6 0.4 0.4 0.5 0.4 0.5
6 0.0 0.1 0.0 0.1 0.0 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Table 16: Distribution of total value held by DMFs across market capitalization deciles
lakh
crore
1 7.7 9.2 10.1 11.6 12.5 13.5 15.8 16.0 16.7 15.8 17.0 18.7 18.1 20.0 22.0 25.4
2 0.9 1.1 1.2 1.5 1.6 2.0 2.2 2.4 2.4 2.3 2.9 2.6 2.8 3.5 3.7 4.2
3 0.2 0.3 0.3 0.5 0.4 0.6 0.6 0.7 0.7 0.7 0.9 0.8 0.9 1.1 1.2 1.4
4 0.1 0.1 0.1 0.1 0.2 0.3 0.2 0.3 0.3 0.2 0.3 0.3 0.3 0.4 0.5 0.6
5 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2
6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 8.8 10.8 11.7 13.8 14.7 16.5 18.9 19.6 20.1 19.1 21.3 22.6 22.2 25.1 27.5 31.7
51/239
Market Pulse
Table 17: Market cap decile-wise share of FPIs’ portfolio in NSE listed companies
1 93.5 92.2 93.2 92.6 92.8 90.9 91.9 90.9 90.9 91.0 89.7 91.3 90.4 89.8 89.5 89.5
2 4.9 5.7 5.1 5.4 5.4 6.6 5.9 6.4 6.3 6.3 6.8 6.0 6.5 6.9 7.0 6.9
3 1.2 1.5 1.2 1.4 1.4 1.7 1.6 1.9 1.8 1.8 2.3 1.8 2.0 2.0 2.4 2.3
4 0.3 0.4 0.3 0.4 0.3 0.5 0.4 0.5 0.6 0.5 0.7 0.6 0.7 0.8 0.8 0.9
5 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 0.3 0.3 0.3
6 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Table 18: Distribution of total value held by FPIs across market capitalization deciles
lakh
crore
1 21.8 25.7 29.3 37.6 40.5 42.9 48.7 47.1 45.6 40.3 44.7 48.1 43.9 49.8 51.9 58.6
2 1.1 1.6 1.6 2.2 2.4 3.1 3.1 3.3 3.2 2.8 3.4 3.2 3.1 3.8 4.0 4.5
3 0.3 0.4 0.4 0.6 0.6 0.8 0.8 1.0 0.9 0.8 1.1 0.9 1.0 1.1 1.4 1.5
4 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.2 0.4 0.3 0.3 0.4 0.4 0.6
5 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.2 0.2 0.2
6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.1
7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 23.3 27.9 31.5 40.6 43.6 47.2 53.0 51.9 50.2 44.3 49.8 52.6 48.6 55.4 58.0 65.5
Table 19: Market cap decile-wise share in total market capitalization of NSE listed companies
1 87.1 84.6 85.4 84.0 84.4 81.5 82.8 81.0 81.5 82.1 80.0 82.0 80.9 79.6 79.1 78.9
2 8.3 9.5 9.2 9.5 9.6 10.6 10.0 10.9 10.5 10.2 11.0 10.1 10.6 11.1 11.1 11.2
3 2.6 3.1 3.0 3.5 3.3 4.1 3.8 4.1 4.0 3.8 4.3 3.9 4.2 4.4 4.7 4.8
4 1.0 1.3 1.2 1.5 1.4 1.9 1.7 1.9 1.9 1.8 2.2 1.9 2.0 2.3 2.3 2.4
5 0.5 0.7 0.6 0.8 0.7 1.0 0.9 1.0 1.0 1.0 1.2 1.1 1.1 1.3 1.3 1.3
6 0.2 0.4 0.3 0.4 0.3 0.5 0.4 0.6 0.6 0.6 0.7 0.6 0.6 0.7 0.7 0.7
7 0.1 0.2 0.1 0.2 0.2 0.3 0.2 0.3 0.3 0.3 0.4 0.3 0.3 0.4 0.4 0.4
8 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2
9 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
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Table 20: Market capitalization of NSE listed companies distributed across deciles
lakh
crore Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec
1 97.5 117.1 130.8 156.9 171.4 185.9 213.7 213.0 212.7 197.3 214.0 228.7 205.5 232.0 249.1 283.7
2 9.3 13.1 14.0 17.7 19.4 24.3 25.8 28.6 27.3 24.5 29.3 28.0 26.9 32.3 35.0 40.3
3 2.9 4.4 4.6 6.5 6.7 9.3 9.7 10.7 10.4 9.3 11.4 10.8 10.6 12.7 14.8 17.1
4 1.1 1.9 1.9 2.8 2.9 4.3 4.5 5.1 4.9 4.4 5.8 5.3 5.2 6.6 7.4 8.6
5 0.6 1.0 1.0 1.5 1.4 2.2 2.3 2.7 2.6 2.5 3.2 2.9 2.8 3.7 4.1 4.7
6 0.3 0.5 0.5 0.7 0.7 1.1 1.1 1.5 1.5 1.3 1.9 1.6 1.6 2.1 2.3 2.7
7 0.1 0.3 0.2 0.4 0.3 0.6 0.5 0.8 0.8 0.7 1.0 0.8 0.8 1.1 1.2 1.4
8 0.1 0.1 0.1 0.2 0.2 0.3 0.2 0.4 0.4 0.4 0.5 0.4 0.4 0.5 0.6 0.7
9 0.0 0.1 0.0 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1 0.1 0.0 0.1 0.1 0.1
Total 112.0 138.4 153.1 186.7 203.1 228.2 258.0 263.0 261.0 240.5 267.4 278.9 254.2 291.2 314.8 359.5
Ownership concentration in terms of no. of companies with holding greater than 5%:
We now compare the depth of institutional ownership with its width in the market. We
consider the FPI portfolio in India since 2001, not in terms of its value, but in terms of the
number of stocks. FPIs meaningfully expanded their invested pool of companies between
2020 and 2022, from near-1200 odd companies in December 2020 to 1450+ by
December 2021 and 1770+ by December 2022. After dropping sharply to about 1470+
in June 2023, the number of companies held by FPIs increased for two straight quarters,
currently standing at nearly 1650 in December 2023. The number of companies where
FPI holding is greater than 5%, however, stayed at 630 (vs 627 in Sep’23), indicating that
while FPIs have expanded their pool of companies, they have not necessarily chosen to
have big bets on them. That said, a part of this increase can also be attributed to several
new companies getting listed this year (194 in Apr’23-Feb’24 vs. 101 in FY23).
In line with foreign investors, the number of companies held by DMFs increased by about
30 to nearly 1250 in the December quarter. The number of companies in which DMFs hold
more than 5% stake also went up commensurately to 527 in the quarter gone by. As a
result, the ratio of count of such companies to the total number of DMF-owned companies
in the NSE-listed universe rose significantly to an all-time high level of 42.4%.
Figure 87: Number of listed cos with FPI holding >5% Figure 88: Number of Nifty500 cos with FPI holding >5%
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# FPI-held cos. % # %
# of listed cos with FPI share>5% # of Nifty 500 cos with FPI share>5%
2,000 Share of cos. with 5%+ FPI share in FPI-held cos. (R)70% 438 % of Nifty 500 cos (R) 100%
1,800 60% 388 90%
1,600 80%
50% 338
1,400
70%
1,200 40% 288
60%
1,000 30% 238
50%
800 20% 188
40%
600
10% 138 30%
400
0% 88 20%
200
0 -10% 38 10%
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 89: Number of listed cos with DMF holding >5% Figure 90: Number of Nifty500 cos with DMF share >5%
# DMF-held cos % # %
# of Nifty 500 cos with DMF share>5%
# of listed cos with DMF share>5%
1,300 % of Nifty 500 cos (R)
Share of cos. with 5%+ DMF share in DMF-held cos. (R)45% 400 75%
40% 350 65%
1,100
35%
300 55%
900
30%
250 45%
700 25%
200 35%
20%
500
150 25%
15%
300 100 15%
10%
100 5% 50 5%
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Figure 91: Number of listed companies with Banks, FIs Figure 92: Number of Nifty500 companies with Banks,
& Insurance holding >5% FIs & Insurance holding >5%
# BFI-held cos % # %
# of Nifty 500 cos with Banks, Fis & Insurance share>5%
# of listed cos with BFI share>5%
1,700 Share of cos. with 5%+ BFI share in BFI-held cos. (R) 50% % of Nifty 500 cos (R)
260 55%
1,500 45%
240 50%
1,300 40%
220
35% 45%
1,100 200
30% 180 40%
900
25% 160
700 35%
20% 140
500 30%
15% 120
300 10% 100 25%
100 5% 80 20%
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Dec-23
Source: CMIE Prowess, NSE EPR. BFI = Banks, Financial Institutions, and Insurance Companies.
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Market Pulse
Macroeconomy
Macro round-up
Growth and inflation holding up; overall trade deficit shrinking
Domestic economic growth has held steady despite global headwinds. The Q3FY24 GDP growth at 8.4% significantly
surpassed expectations, translating into full year GDP growth of 7.6%, up 30bps from the CSO’s First Advance
Estimate. IIP growth slowed down to 3.8% YoY, undershooting market expectations, while the eight core sectors’
output growth moderated to a 15-month low of 3.6% YoY. Business sentiments, however, remain upbeat, with the
composite PMI remaining north of the 60-mark for the second consecutive month, signaling robust optimism in both
the manufacturing and services sectors. Headline inflation remained largely unchanged in February at 5.1%, with a
marginal increase in Food and Beverages inflation offset by a deceleration in prices across the board. At the same time,
core inflation (excl. Food and Beverages and Fuel and Light) dipped down to the series low of 3.3%. The overall trade
deficit meaningfully expanded after a 31-month low recorded in January, led by an increase in the merchandise trade
deficit on account of import growth outstripping exports growth in the month. The services trade balance continues to
remain at record high levels, led by strong services exports growth.
The Centre’s fiscal position remained comfortable, with the cumulative deficit falling by 7.4% YoY to Rs 11 lakh crore
in the first 10 months of the fiscal, supported by an appreciable correction in the revenue deficit despite a healthy
26.5% YoY expansion in capex. Notably, fiscal stability is maintained despite potential shortfalls in the divestment
targets and an overreach in the MGNREGS budget. The Centre’s ability to meet its deficit targets for this fiscal is further
supported by a substantial uptick in tax revenues, bolstering the Centre's capacity to meet its deficit targets for the
current fiscal.
• Economic activity shows divergent signs: February's high-frequency indicators

reveal ongoing growth amidst persistent stress factors. IIP growth moderated to
3.8% YoY in January from a revised 4.2% the previous month, falling short of the
4.1% market expectations. Despite this, capex-proxy indicators have shown
stability following a contraction in November. The composite PMI maintained a
robust 60-level mark for two consecutive months, driven by optimism in both the
Services and Manufacturing sectors, indicating a positive overall outlook. However,
core sector output eased to a 15-month low of 3.6% YoY, with refinery products
witnessing a 4.4% YoY contraction. Meanwhile, domestic consumption presented
a mixed picture: consumer durables expanded by 10.9% YoY, while non-durables
contracted by 0.3%. Going forward, the Centre's continued emphasis on capex,
lower inflation, and improved monsoon forecasts are expected to alleviate rural
demand distress.
• Exports continue to show resilience: In Feb'24, India's trade deficit increased to

US$ 18.7bn due to imports rising at a higher rate (12.7%) than exports (12.2%).
The export growth was primarily driven by electronic goods, Engineering goods,
and Petroleum, with electronic goods exports increasing by 23% due to the PLI
scheme. Agri exports and ready-made textiles also showed positive growth. The
service balance remained in surplus at US$ 16.8bn, with services exports reaching
an all-time high of US$ 32.2bn. India has emerged resilient on the exports front
amidst the ongoing global uncertainty and looks on track to maintain a comfortable
CAD/GDP ratio in the fiscal.
• Core inflation at twelve-year low, headline declines to 5.1%: CPI headline

inflation remained unchanged at 5.1% YoY, meeting market expectations. Food
inflation increased slightly to 7.8% YoY, while all other components recorded a
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Market Pulse
decline, leading to core inflation decreasing to 3.3% YoY, the lowest in the current
CPI series (since 2012). On a sequential basis, headline inflation increased by 0.2%
MoM after two consecutive months of contractions. WPI inflation decreased to
0.2% YoY from 0.3% YoY in Feb’23 due to moderation in Fuel and Power, and
Manufactured goods, even as all but two subcomponents registering non-negative
growth on a month-on-month basis. Headline CPI inflation is on a downward trend,
with low reservoir levels posing an upside risk to food prices.
• The Union’s fiscal position remains comfortable: Total receipts witnessed 15.5%
YoY in 10MFY24, thanks to healthy direct tax collections (+23.6% YoY)—both
corporate and income tax receipts recorded robust expansion of 20.1% and 27.3%
YoY, respectively. Among indirect taxes, while GST collections remained robust,
with January collections at Rs 1.68 lakh crore (+12.5% YoY), contraction in excise
duties pulled down the overall growth in indirect taxes (+4.9% YoY in 10MFY24).
The Centre maintained its focus on capital spending, as it recorded a robust growth
of 26.5% YoY, reaching ~76% of the revised estimates in the ten months of the
fiscal. Cumulative revenue expenditure saw further moderation in growth to 1.4%
in 10MFY24 from 3.6% YoY in the previous month, owing to a contraction in food
and fertilizer subsidy outgo. Despite challenges, including lower-than-expected
nominal GDP growth, potential slippage in divestment efforts, and budget overruns
in the MGNREGS, the Centre remains poised to achieve its revised fiscal deficit
target of 5.8% for FY24. This outlook is bolstered by two key factors: stronger-
than-budgeted direct tax collections and lower-than-budgeted revenue
expenditure. Furthermore, when compared to the FY2024 RE, an expected
shortfall in capital expenditure serves as an additional buffer.
• Global update— cautious optimism across the board: The global composite PMI
continued to show an uptick, coming in at 52.1% in Feb’24 vs. 51.8% in Jan’24,
marking the fourth straight quarter of increases, showing increasing confidence
across the world in the global economy. The US economy continued to show
strength, with resilient GDP growth coupled with tighter than expected labour
markets. The UK economy also grew by 0.2% MoM in January following a
contraction in the last month of 2023. Chinese prices went up in February after four
straight months of deflation, providing some comfort amidst the difficult recovery
faced by the country.
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Market Pulse
Q3FY24 GDP growth at 8.4% beats expectations

India’s Q3FY24 real GDP growth came in at a strong 8.4%, significantly above market expectations (Consensus: 6.6%).
This, with upward revisions in the previous two quarters (40bps each, 8.2% in 9MFY24), now leads to the Second
Advance Estimate (SAE) of 7.6% in FY24, up 30bps from the First Advance Estimate (FAE). GDP growth for FY23 has
been revised downwards by 20bps to 7%, but off a 70bps upward revision in FY22 growth to 9.8%, translating into an
average growth of 8.1% in the last three years. A robust expansion in investments, aided by strong Government capex
and housing demand, more than made up for weak private consumption in FY24. In fact, barring COVID-led contraction
in FY21, private consumption growth at 3% in FY24 was the lowest in last 21 years. By economic activity, Gross Value
Added (GVA) growth for Q3 and FY24 are pegged at 6.5% and 6.9% respectively, broadly in line with market
expectations. The divergence between GDP and GVA is a consequence of better tax collections and lower subsidy
payout. The growth was led by Industry (+10.4% in Q3/+9% in FY24) and Services (+7% in Q3/+7.5% in FY24), while
Agri remained weak (-0.8% in Q3, +0.7% in FY24—the lowest in eight years).
Interestingly, nominal GDP in absolute terms has been revised downwards by 1.1% and 0.9% in FY23 and FY24
respectively, with FY24 nominal GDP growth now pegged at 9.1% (vs. 8.9% in FAE). This is owing to a negative deflator
in Industry, reflecting the impact of a sharp drop in commodity prices. In fact, the change in deflator of -1.1% in
Industry in FY24 is the lowest in last 68 years.
A significant positive surprise in real GDP growth in Q3 and FY24 is partly led by higher net taxes and weak deflator.
Consumption demand has remained muted, as also reflected from moderating imports growth. That said, the revival
in investments is gaining strength, and should get further support from higher Government capex next year, even as a
durable recovery remains contingent on a broad-based pick-up in consumption demand and private investments. Key
downside risks to the growth outlook include continued weakness in rural demand, slowing global growth and
persistent supply disruptions due to geopolitical tensions.
• Q3FY24 real GDP growth at 8.4% surprised positively; GVA growth in-line with
GDP growth in Q3FY24
expectations: India’s real GDP growth came in 8.4% YoY in Q3FY24, beating the came in a strong 8.4% YoY,
consensus estimate by a wide margin (Consensus: 6.6%). The GVA growth at 6.5% beating market
was broadly in line with expectations. The divergence between the two is led by expectations by a wide
higher tax collections (+12.5% YoY in 9MFY24) and lower subsidy payout (-21% margin.
YoY in 9MFY24). With a 40bps upward revision in Q1 and Q2 GDP growth to 8.2%
and 8.1% respectively, real GDP growth for the first three quarters of FY24 now
stands at 8.2%. GVA growth, on the other hand, stands adjusted at 7.5%, after
upward revision in Q1 growth forecast to 8.2% (+40bps) and Q2 to 7.7% (+30bps).
• Investment-led growth; consumption muted: The GDP growth in Q3 was

primarily led by Investments, even as consumption—both private and
Government—remained muted. Gross Fixed Capital Formation (GFCF)—a
barometer of investments in the economy—registered a strong growth of 10.6% in
Q3, marking a 10%+ growth for the second quarter in a row, translating into a
growth of 10.2% in the first three quarters. This was primarily led by strong
Government capex (+37.5% YoY in 9MFY24), robust housing demand (As reflected
from higher sales and price appreciation) and reviving private capex (As reflected
from a strong 16% YoY growth in outstanding credit in Industry and Services
combined). Private Final Consumption Expenditure (PFCE) growth, on the other
hand, remained muted at 3.5% YoY in Q3 (+2.4% YoY in Q2FY24), with downward
revisions in the previous two quarters, reflecting the impact of weak rural demand
due to uneven monsoon. Government Final Consumption Expenditure (GFCE), on
the other hand, fell by 3.2% YoY in Q3FY24. Notably, the share of GFCE in overall
real GDP at 7.8% in Q3 is the lowest in last 31 quarters. On the external front, both
exports and imports growth slowed down to 3.4% and 8.3% YoY respectively.
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Market Pulse
• Industry and Services drove GVA growth: GVA growth in Q3 was primarily led by
Industry and Services, even as Agriculture sector growth remained muted. The
Industry GVA grew by a strong 10.4% YoY in Q3, led by a broad-based acceleration.
Manufacturing GVA growth at 11.6% in Q3 follows a robust 14.4% YoY growth in
the previous quarter (revised up by 50bps). Construction GVA registered a strong
9.5% YoY growth, partly attributed to strong real estate demand, translating into
an average YoY growth of 10.4% in the last seven quarters. Electricity, Water
Services and Other Utilities grew by a similar 9% YoY, while Mining registered a
growth of 7.5%. The Services sector also remained resilient, recording a YoY
growth of 7% in Q3, implying a growth of 7.8% in the first three quarters on top of
an 11% growth in the same period last year. Within Services, Trade, Hotels &
Transport grew by 6.7%, Financial Services by 7% and Public Administration &
Defence by 7.5%. Notably, Core GVA growth—ex Agriculture and Public
Administration, Defence & Other Services—stood at a strong 8.4% YoY, translating
into an 8.7% growth in the first three quarters.
• Second Advance Estimate for FY24 revised up to 7.6%: With significant upward
The SAE for FY24 GDP
revisions in the first two quarters, real GDP growth for FY24 has been revised
growth has been revised up
upwards by 30bps to 7.6%, translating into an implied growth of 6.4% in Q4. This, by 30bps to 7.6%; FY23
however, came on the back of a 20bps downward revision in FY23 GDP growth to revised lower by 20bps to
7.0%. Notably, revision in FY22 real GDP growth has been starker, having seen a 7.0% and FY22 revised
70bps upward revision to 9.8%. Investments (GFCF), with a 10.2% growth, have higher by 70bps to 9.8%.
remained the strongest growth driver of the economy this year. In fact, GFCF as a Real GVA growth for FY24,
however, has been kept
share of GDP stood at an 11-year high of 34% in FY24. Barring the COVID-induced
unchanged at 6.9%.
contraction in FY21, private consumption growth at 3% in FY24 was the lowest in
the last 21 years. Interestingly, contribution from Discrepancies to FY24 GDP
growth at 55% is the highest in the last 15 years. Real GVA growth, however, has
been kept unchanged at 6.9% in FY24, with upward revision in Industry growth
(+1.1pp to 9%) making up for a downward revision in Agri and Services growth.
This, when seen in conjunction with upgrades in the first two quarters, signals a
deceleration in growth momentum in the last quarter, strikingly so in Industry.
• Nominal GDP value revised lower: Interestingly, nominal GDP in absolute terms
has been revised downwards by 1.1% and 0.9% in FY23 and FY24 respectively.
This makes the FY24 nominal GDP growth look optically better at 9.1% (vs. 8.9%
in FAE). This downward revision in the nominal GDP value is owing to a negative
deflator in Industry, reflecting the impact of a sharp drop in commodity prices. In
fact, the change in deflator of -1.1% in Industry in FY24 is the lowest in the last 68
years.
• Growth outlook robust but risks persist: A significant positive surprise in real GDP
growth in Q3 and FY24 is partly led by higher net taxes and weak deflator.
Consumption demand has remained muted, as reflected in weak private
consumption and moderating imports growth. That said, the revival in investments
is gaining strength, and should get further support from a higher Government capex
next year, even as a durable recovery remains contingent on a broad-based pick-
up in consumption demand and private investments. A normal monsoon this year
and Government support ahead of elections should provide some impetus to rural
demand. Key downside risks to the growth outlook include slower-than-expected
recovery in rural demand, slowing global growth and persistent supply disruptions
due to geopolitical tensions.
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Market Pulse
Figure 93: India quarterly GDP growth trend
Source: Refinitiv Datastream, NSE EPR.
Table 21: Quarterly GDP growth trend (2011-12=100) (%YoY)

FY22 FY23 FY24
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Gross Domestic Product (GDP) 23.0 9.7 5.7 4.0 12.8 5.5 4.3 6.1 8.2 8.1 8.4
Private Consumption (PFCE) 18.0 13.6 11.0 4.7 18.5 8.2 1.8 2.8 5.3 2.4 3.5
Government Consumption (GFCE) -8.0 5.0 -0.6 11.8 9.8 3.4 7.1 2.3 -0.1 13.8 -3.2
Gross Capital Formation (GCF) 78.2 24.0 9.4 3.0 14.9 2.4 2.8 7.8 7.5 10.6 12.2
Gross Fixed Capital Formation (GFCF) 71.0 14.1 4.8 4.9 13.9 4.7 5.0 8.9 8.5 11.6 10.6
Exports 50.0 28.5 31.1 22.4 19.1 11.7 10.9 11.9 -6.5 5.3 3.4
Imports 46.9 28.5 21.4 6.7 26.1 16.1 4.1 4.9 15.3 11.9 8.3
Gross Value Added (GVA) 21.6 9.8 5.2 3.9 11.3 5.0 4.8 6.5 8.2 7.7 6.5
Agriculture 4.5 5.9 3.0 4.1 2.7 2.3 5.2 5.5 3.5 1.6 -0.8
Industry 53.0 8.5 3.0 2.3 6.8 -2.4 0.6 6.3 6.0 13.6 10.4
Mining and Quarrying 11.3 10.4 5.3 2.3 6.6 -4.1 1.4 4.3 7.1 11.1 7.5
Manufacturing 50.4 5.7 0.3 0.6 2.2 -7.2 -4.8 4.5 5.0 14.4 11.6
Electricity 17.0 11.5 6.6 6.7 15.6 6.4 8.7 6.9 3.2 10.5 9.0
Construction 99.6 14.7 7.3 4.9 14.7 6.9 9.5 10.4 8.5 13.5 9.5
Services 12.9 11.5 7.4 4.9 16.7 9.8 7.2 6.9 10.7 6.0 7.0
Trade, Hotels, Trans., Storage, Comm. 44.0 15.2 8.9 5.0 22.1 13.2 9.2 9.1 9.7 4.5 6.7
Fin. Svcs, Real Estate & Business Svcs. 3.5 7.6 5.3 4.6 10.5 8.7 7.7 7.1 12.6 6.2 7.0
Public Admin., Defence & Other Svcs. 4.1 14.6 8.6 5.2 23.6 7.3 3.5 3.1 8.2 7.7 7.5
Source: CSO, NSE EPR.
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Market Pulse
Figure 94: Quarterly GDP growth by expenditure (%YoY)
Figure 95: India GDP sector share of growth (%)
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Figure 96: Gross value added (GVA) across sectors
Figure 97: India GVA sector share of growth (%)
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Figure 98: Quarterly trend of nominal vs. real GDP and GVA growth
Figure 99: Annual real GDP growth trend

% Annual GDP growth trend
12.0
9.8
10.0
8.5 8.3
7.9 8.0
7.4 7.6
8.0 6.8 7.0
6.4 6.5
6.0 5.2 5.5
3.9
4.0
2.0
(2.0)
(4.0)
(6.0)
-5.8
(8.0)
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24SAE
Source: CSO, CMIE Economic Outlook, NSE EPR. SAE = Second Advance Estimate.
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Market Pulse
Figure 100: Annual real GDP growth trend

%
Annual GVA growth trend
12.0
10.0 9.4
8.0 8.0 8.0
8.0 6.9 7.2 6.9
6.7
6.1 6.2 5.8
6.0 5.2 5.4
3.9
4.0
2.0
0.0
-2.0
-4.0
-4.2
-6.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24SAE
Table 22: Annual real GDP and GVA growth trend (% YoY)
Implied
FY20 FY21 FY22 FY23 FY24SAE
Q4FY24
Gross Domestic Product (GDP) 3.9 -5.8 9.8 7.0 7.6 6.4
Private Consumption (PFCE) 5.2 -5.2 11.6 6.8 3.0 1.1
Government Consumption (GFCE) 3.9 -0.9 0.1 9.0 3.0 7.4
Gross Capital Formation (GCF) -2.6 -7.9 21.8 5.5 10.2 7.2
Gross Fixed Capital Formation (GFCF) 1.1 -7.3 17.8 6.6 10.2 5.7
Exports of goods & services 16.1 -38.8 -51.5 -52.7 517.8 6.6
Imports of goods & services -3.4 -9.1 32.7 13.4 1.5 4.2
Gross Value Added (GVA) 3.9 -4.2 9.4 6.7 6.9 5.3
Agriculture 6.2 4.1 4.5 4.7 0.7 2.7
Industry -1.4 -0.9 12.7 2.1 9.0 3.7
Mining and Quarrying -3.0 -8.6 6.7 1.9 8.1 5.6
Manufacturing -3.0 2.9 10.1 -2.2 8.5 -0.4
Electricity 2.3 -4.3 10.5 9.4 7.5 8.7
Construction 1.6 -5.7 21.3 9.4 10.7 9.8
Services 6.4 -8.2 9.0 10.0 7.5 7.1
Trade, Hotels, Transport, Storage, Comm. 6.0 -19.7 14.9 12.0 6.5 4.4
Fin. Svcs, Real Estate & Business Svcs. 6.8 2.1 5.5 9.1 8.2 9.9
Public Administration, Defence & Other Svcs. 6.6 -7.6 7.6 8.9 7.7 7.2
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Table 23: Revisions in real GDP and GVA growth for the last three years
FY22 FY23 FY24SAE
%
Old New Old New Old New
Gross Domestic Product (GDP) 9.1 9.8 7.2 7.0 7.3 7.6
Private Consumption 11.2 11.6 7.5 6.8 4.4 3.0
Government Consumption 6.6 0.1 0.1 9.0 4.1 3.0
Gross capital formation 17.9 21.8 9.6 5.5 9.3 10.2
Gross Fixed Capital Formation 14.6 17.8 11.4 6.6 10.3 10.2
Net trade of goods & services -39.6 -51.5 79.7 -52.7 144.2 517.8
Exports of goods & services 29.3 32.7 13.6 13.4 1.4 1.5
Imports of goods & services 21.8 23.6 17.1 10.6 13.2 10.9
Gross Value Added (GVA) 8.8 9.4 7.0 6.7 6.9 6.9
Agriculture 3.5 4.5 4.0 4.7 1.8 0.7
Industry 11.6 12.7 4.4 2.1 7.9 9.0
Mining and Quarrying 7.1 6.7 4.6 1.9 8.1 8.1
Manufacturing 11.1 10.1 1.3 -2.2 6.5 8.5
Electricity 9.9 10.5 9.0 9.4 8.3 7.5
Construction 14.8 21.3 10.0 9.4 10.7 10.7
Services 8.8 9.0 9.5 10.0 7.7 7.5
Trade, Hotels, Transport, Storage, Comm. 13.8 14.9 14.0 12.0 6.3 6.5
Fin. Svcs, Real Estate & Business Svcs. 4.7 5.5 7.1 9.1 8.9 8.2
Public Admin, defence & Other Svcs. 9.7 7.6 7.2 8.9 7.7 7.7
Table 24: Revisions in real GDP and GVA growth for the first six quarters
Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
%
Old New Old New Old New Old New Old New Old New
Gross Domestic Product (GDP) 13.1 12.8 6.2 5.5 4.5 4.3 6.1 6.1 7.8 8.2 7.6 8.1
Private Consumption 19.8 18.5 8.3 8.2 2.2 1.8 2.8 2.8 6.0 5.3 3.1 2.4
Government Consumption 1.8 9.8 -4.1 3.4 -0.6 7.1 2.3 2.3 -0.7 -0.1 12.4 13.8
Gross capital formation 20.8 14.9 6.5 2.4 5.2 2.8 7.8 7.8 7.1 7.5 9.9 10.6
Gross Fixed Capital Formation 20.4 13.9 9.6 4.7 8.0 5.0 8.9 8.9 8.0 8.5 11.0 11.6
Net trade of goods & services -653.1 -193.2 216.8 117.2 6.8 -65.8 -90.4 -90.4 199.0 884.9 95.0 89.1
Exports of goods & services 19.6 19.1 12.2 11.7 11.1 10.9 11.9 11.9 -7.7 -6.5 4.3 5.3
Imports of goods & services 33.6 26.1 23.1 16.1 10.7 4.1 4.9 4.9 10.1 15.3 16.7 11.9
Gross Value Added (GVA) 11.9 11.3 5.4 5.0 4.7 4.8 6.5 6.5 7.8 8.2 7.4 7.7
Agriculture 2.4 2.7 2.5 2.3 4.7 5.2 5.5 5.5 3.5 3.5 1.2 1.6
Industry 9.4 6.8 -0.5 -2.4 2.3 0.6 6.3 6.3 5.5 6.0 13.2 13.6
Mining and Quarrying 9.5 6.6 -0.1 -4.1 4.1 1.4 4.3 4.3 5.8 7.1 10.0 11.1
Manufacturing 6.1 2.2 -3.8 -7.2 -1.4 -4.8 4.5 4.5 4.7 5.0 13.9 14.4
Electricity 14.9 15.6 6.0 6.4 8.2 8.7 6.9 6.9 2.9 3.2 10.1 10.5
Construction 16.0 14.7 5.7 6.9 8.3 9.5 10.4 10.4 7.9 8.5 13.3 13.5
Services 16.3 16.7 9.4 9.8 6.1 7.2 6.9 6.9 10.3 10.7 5.8 6.0
Trade, Hotels, Transport, Storage 25.7 22.1 15.6 13.2 9.6 9.2 9.1 9.1 9.2 9.7 4.3 4.5
Fin. Svcs, Real Estate, Business Svcs. 8.5 10.5 7.1 8.7 5.7 7.7 7.1 7.1 12.2 12.6 6.0 6.2
Public Admin, Defence, Other Svcs. 21.3 23.6 5.6 7.3 2.0 3.5 3.1 3.1 7.9 8.2 7.6 7.7
Source: CSO, CMIE Economic Outlook, NSE EPR.
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Market Pulse
Industrial activity moderated but sentiments remain strong

IIP growth eased to 3.8%YoY in January from an upwardly revised 4.2% in the previous month, undershooting market
expectations (consensus +4.1% YoY). This was on account of moderation in Manufacturing activity (+3.2% YoY), with
15/23 sub-sectors reporting expansion on a YoY basis, while Mining and Electricity production registered strong
growth. The use-based classification indicated stability in capex-related indicators following a slowdown in November,
with capital goods demonstrating growth, aided by strong government capital expenditure (+26.5% YoY in 10MFY24).
Infrastructure & construction goods, however, saw growth moderating slightly to 4.6%YoY, while intermediate goods
picked up momentum and grew by 4.8%. Consumption also seemed to have recovered, primarily led by Consumer
Durables that recorded a strong 10.9% YoY growth, albeit off a favourable base, while Consumer Non-durables
remained weak. Notwithstanding moderation in industrial activity, business sentiments remain strong as reflected in
the recent PMI readings. The Composite PMI remained north of the 60-level mark for two consecutive months, with
both the services and manufacturing sectors contributing positively.
Core sector output growth moderated to a 15-month low of 3.6% YoY in January from 4.9% YoY growth in the previous
month, with notable contractions in refinery products and fertilizers, even as the electricity sector and coal production
displayed strength. IIP growth in the first 10 months of this fiscal averaged 6.0%, slightly higher than 5.8% in the same
period last year. India’s economic resilience is visible in other high-frequency indicators as well, aided by recovery in
private investments, strong government capex and a gradual improvement in rural demand. That said, a durable
recovery in consumption is crucial for a credible recovery in industrial activity.
• IIP growth eased to 3.8% YoY in January: IIP growth eased to 3.8% YoY in
January from an upwardly revised growth of 4.2% in the previous month,
undershooting market expectations of 4.1%. This was primarily due to a drop-in
manufacturing activity—accounting for 78% of the total industrial production—to
3.2% YoY in Jan’24 from 4.5% in the previous month, owing to contraction in
computer & electronics (-11.9% YoY), tobacco (-7.4% YoY), and paper products
(-6.3% YoY). In contrast, the Mining production growth improved to 5.9% YoY in
Jan’24 from 5.2% in Dec’23, while the electricity sector registered a growth of
5.6% YoY vs 1.2% in Dec’23. Over the first ten months of this fiscal year, IIP
growth averaged 6.0% YoY, a slight improvement from 5.8% in the same period
last year, with mining leading with an 8.5% YoY increase.
• Capex-proxy indicators remained stable…: In accordance with the use-based

classification, capex proxy indicators, which had decelerated in Nov’24 after a
robust performance in the first seven months of this fiscal year, showed some
divergence in Jan’24. Capital goods production growth improved to 4.1% YoY in
Jan’24 from 3.6% YoY in the previous month, driven by an increase in order
books, more than 12% growth in highway construction during 10MFY24, and
strong Government capex (+26.5% YoY for 10MFY24). Conversely,
Infrastructure/Construction Goods growth softened to 4.6% YoY in Jan’24 vs.
5.1% YoY in Dec’23, and 11.3% YoY in the same period a year ago. Meanwhile,
Intermediate goods growth accelerated to 4.8% YoY in Jan’24 (vs 3.9% in
Dec'23) on the back of higher exports and a favourable base.
• …While consumption witnessed some improvement: According to the use-

based classification, all categories, barring consumer non-durables, showed
positive growth, led by consumer durables, intermediate, and infrastructure
goods. The recovery in consumption presents a divergence, with a three-year
CAGR of +3.0% for consumer non-durables, and -0.9% for consumer durables.
However, consumer durables witnessed a significant increase of 10.9% YoY in
Jan’24 (vs 5.3% YoY in Dec’23). This shift can be attributed to a revival in demand
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and the impact of a strong low base effect as growth was negative in the previous
year (-8.2% YoY in Jan’23). On the other hand, consumer non-durables
witnessed a slight dip, contracting by 0.3% YoY in Jan’24 (vs 2.4% YoY in
Dec’23), possibly indicating a slower recovery in consumption demand by low-
and middle-income households. It is interesting to note that the output level of
all use-based segments is above the pre-COVID level of Feb’20 after a gap of 33
months.
• Core sector output growth moderated in Jan’24: The core sector output growth
moderated to a 15-month low of 3.6% YoY in Jan'24 (vs. 9.7% YoY Jan’23). On a
sequential basis, the core sector growth moderated to 2.2% MoM in Jan'24 (vs.
7.0% MoM in Dec’23). This deceleration was primarily led by a contraction of
4.4% YoY in refinery products, which holds the highest weight (28%) in the index,
followed by fertilisers (-0.6% YoY). The Electricity sector, on the other hand, grew
by 5.2% YoY and 8.1% MoM, supported by the increase in coal production of
99.73 million tonnes, clocking its seventh consecutive month of double-digit
growth at 10.2% YoY. In addition, crude oil production broke a two-month
contraction streak and registered a modest 0.6% YoY growth in January. Notably,
in FY24TD (Apr-Jan), steel emerged as the best-performing sector, recording an
average growth of 13.3%, followed by coal at 12.5%. In the first ten months of
this fiscal, core sector output growth moderated slightly to 7.9% compared to
8.4% in the corresponding period of FY23TD.
• Composite PMI points to strong business confidence: India's economic outlook

remained positive in Feb '24, with the Composite PMI remaining above the 60-
mark for the second month in a row, even as it eased marginally from 61.2 in
January to 60.6 in February. The services sector PMI witnessed a slight
moderation and eased to 60.6 (vs 61.8 in Jan’24), owing to a marginal slowdown
in new order and output growth. However, the outlook for future business activity
in the services sector remained strongly positive, albeit weakening slightly. On
the pricing front, services witnessed the slowest price rise in 24 months as input
cost inflation moderated. Notably, the Services PMI recorded a reading above 60
in seven out of eleven months during FY24TD, maintaining an expansionary
trajectory for 31 consecutive months. The manufacturing PMI rose moderately to
from 56.5 in January to a five-month high of 56.9 in February. This growth was
spearheaded by the capital goods category and sustained optimism in the
production outlook. Importantly, India's Manufacturing PMI continued to
outshine its global counterparts (US: 52.2, UK: 47.5, China: 50.9, Eurozone: 46.5,
Japan: 47.2, Indonesia: 52.7).
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Market Pulse
Table 25: India industrial production for January 2024 (%YoY)

Avg growth Avg growth
%YoY Weight (%) Jan-24 Dec-23 Jan-23
FY24TD FY23TD
IIP 3.8 4.2 5.8 6.0 5.8
Mining 14.4 5.9 5.2 9.0 8.5 5.7
Sector-
based Manufacturing 77.6 3.2 4.5 4.5 5.5 5.3
indices
Electricity 8.0 5.6 1.2 12.7 7.0 10.4
Primary Goods 34 2.9 4.8 9.8 6.6 8.1
Capital Goods 8.2 4.1 3.6 10.5 7.0 15.1
Intermediate Goods 17.2 4.8 3.9 1.4 4.8 4.6
Use-based
Infra/Construction Goods 12.3 4.6 5.1 11.3 10.2 8.6
Goods
Consumer Goods 28.2 3.7 3.4 0.8 3.8 1.3
Consumer Durables 12.8 10.9 5.3 -8.2 2.2 5.1
Consumer Non-durables 15.3 -0.3 2.4 6.5 5.0 -0.3
Source: CSO, NSE EPR.
Figure 101: India industrial production (3MMA)
Source: Refinitiv DataStream, NSE EPR.
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Figure 102: India industrial production use-based goods (3MMA)
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Figure 103: Long-term industrial production trend (12MMA)
Figure 104: Eight core industries growth trend (% YoY)
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Figure 105: Manufacturing PMI across countries
Figure 106: India’s Manufacturing and Services PMI trend

Manufacturing PMI Services PMI
70
60.6
60
56.9
50
40
30
20
10
0
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Oct-22
Jul-23
Oct-16
Oct-17
Oct-18
Oct-19
Oct-20
Oct-21
Oct-23
Jan-19
Jan-17
Jan-18
Jan-20
Jan-21
Jan-22
Jan-23
Jan-24
Apr-16
Apr-17
Apr-18
Apr-19
Apr-20
Apr-21
Apr-22
Apr-23
Source: CMIE Economic Outlook, NSE EPR.
70/239
Market Pulse
Headline inflation remained steady; core moderated to series low levels

The CPI headline inflation remained unchanged at 5.1% YoY in February 2024, in line with market expectations
(Consensus est. 5.1%). While food inflation inched up from 7.6% in Jan’24 to 7.8% in Feb’24, this was offset by
marginal moderation in all other components. Core inflation moderated from 3.6% in January to 3.3% in February, the
lowest in this series (base year: 2012). On a sequential basis, headline inflation increased moderately by 0.2% MoM
after declining for two consecutive months. WPI inflation moderated to 0.2% YoY in Feb’24 (vs. 0.3% YoY in Jan’24)
on the back of moderation in both Fuel & Power (-1.6% YoY in Feb’24 vs. -0.5% YoY in Jan24) and Manufactured goods
(-1.3% in Feb’24 vs. -1.1% in Jan’24) inflation. All WPI subcomponents except Non-food articles and Coal exhibited
non-negative momentum in this month, compared to only two sub-components registering positive sequential growth
in January.
Headline CPI inflation seems to be on a downward trend, having peaked in Dec’23, on the back of broad-based
slowdown in prices. Importantly, the moderation in core inflation has been quite notable, reflecting the impact of weak
rural and external demand. The inflation outlook for next year looks comfortable, with the RBI expecting headline
inflation to fall to the 4% target by the second quarter of the next fiscal assuming a normal monsoon. Further, the
recent cut in LPG prices should provide further support. That said, low reservoir levels may provide some upside risk
to food prices going forward, partly offset by Rabi sowing on par with normal levels. With inflation expected to remain
north of the RBI’s 4% target in the near term and growth holding up strong, we expect no change in rates for now, with
a possibility of easing to emerge only in the later part of the year.
• Headline inflation remained at 5.1% in February…: Headline inflation for the

month of February 2024 came in at 5.1% YoY, the same as the February print.
While food inflation inched up marginally from 7.6% in Jan’24 to 7.8% YoY in
Feb’24, all other components saw a moderation, thereby keeping the headline
inflation contained. On a sequential basis, headline inflation inched up for the third
consecutive month by 0.2% MoM.
• …As vegetable prices rose by a seven-month high pace: The YoY increase in
food prices was driven largely by a 3.2pp rise in vegetable inflation to 30.3% YoY
and a 4pp expansion in Meat & Fish to 5.4% YoY in Feb’24, partly offset by decline
in fruit (-3.8pp to 4.8% YoY) and spices (-2.8pp to 13.5% YoY) inflation. On a MoM
basis, food prices inched up by a moderate 0.1% after declining for two
consecutive months. In spite of the YoY increase, vegetable prices declined by
0.1% MoM in February, suggesting that vegetable inflation is on the way down.
Onion prices moderated for the second consecutive month to 22.1% YoY in
Feb’24 (vs. 30% in Jan’24), while Tomato inflation inched up to 42% YoY (vs. 38%
YoY in Jan’23). Excluding vegetables, CPI inflation for January stood at 3.7%. Fuel
and light inflation remained in the deflationary zone for the sixth month in a row,
registering a 0.8% YoY decline (-0.1% MoM) in Feb’24.
• Core inflation fell to a 12-year low of 3.0%: Core inflation declined for the ninth
consecutive month, falling to 3.3% YoY in February, significantly below the 4%
level. This is the lowest core inflation print in this CPI series, dating back to 2012.
The dip was driven by moderation in prices across the board. On a sequential
basis, core prices inched up by 0.2% MoM in Feb’24.
• WPI inflation continued to remain benign: WPI inflation continued to decline for
the second consecutive month even as it remained in the deflationary zone,
coming in at 0.2% YoY in Feb’24 vs 0.3% YoY in Jan’24, reflecting the impact of
low global commodity prices. The decline in WPI inflation came on the back of
increased disinflation in the Fuel & Power component, which registered a 1.6%
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Market Pulse
YoY decline in February compared to a 0.5% YoY decline in January. At the same
time, Manufactured goods, which constitute more than half of the WPI, also
dipped by 1.3% YoY in Feb’24 (vs. 1.1% in Jan’24). Primary article prices grew by
4.5% YoY, up from 3.8% in the previous month, led by a sharp increase in crude
petroleum and natural gas prices (8.2% YoY in Feb’24 vs 0.2% YoY in Jan’24). On
a sequential basis, WPI registered expansion after two consecutive months of
moderation, increasing by 0.1% MoM. This was on the back of positive momentum
in both Primary articles (0.2% MoM) and Fuel & power (0.2% MoM) components.
• Inflation expected to soften going forward: Core inflation currently stands

significantly below the 4% mark at the series low of 3.3%, while vegetable prices,
which have been the primary drivers of headline inflation, continue to have a
slowing momentum. As a result, inflation appears to be on a downward trajectory.
Rabi sowing staying above normal levels provides some comfort to food prices,
while reservoir levels at 14.2% lower on a YoY basis offers potential for upward
risk. We expect RBI to keep rates unchanged for now since inflation is expected
to remain above the 4% target in the near term.
Table 26: Consumer price inflation in February 2024 (%YoY)

%YoY Weight (%) Feb-24 Jan-24 Feb-23 FY24TD FY23TD
CPI 5.1 5.1 6.4 5.4 7.1
Food & Beverages 45.9 7.8 7.6 6.3 7.0 7.1
Pan, Tobacco & Intoxicants 2.4 3.1 3.3 3.2 3.7 2.3
Clothing & Footwear2 6.5 3.1 3.4 8.8 4.9 10.4
Housing 10.1 2.9 3.2 4.8 4.0 4.6
Fuel & Light 6.8 (0.8) (0.6) 9.9 1.6 11.0
Miscellaneous 28.3 3.6 3.8 6.1 4.5 6.8
Core CPI inflation 1
44.9 3.3 3.6 6.1 4.4 6.5
Source: CSO, NSE EPR. NA = Not Available. Note: 1 Headline inflation excluding food & beverages, pan, tobacco & intoxicants and fuel & light.
Figure 107: Headline CPI inflation trend

%
Headline inlflation remained unchanged at 5.1% YoY
15
CPI Food & Beverages Fuel & Light Core inflation
13
11
9
7.8
7
5 5.1
3
3.3
1
(1) -0.8
(3)
(5)
Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24
Source: CMIE Economic Outlook, NSE EPR.
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Market Pulse
Figure 108: Category-wise contribution to India consumer price inflation (CPI)
Figure 109: Category-wise contribution to India Food and Beverages inflation (CPI)
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Market Pulse
Figure 110: Trend in retail prices of T.O.P. veggies Figure 111: Trend in retail prices of pulses (Rs/kg)
(Rs/kg)
TOP retail prices Pulses retail prices
Gram Urad dal Moong
Potato Onion Tomato (RHS)
70 150 130 Masoor Tur (RHS) 160
60 120
150
100 110
50
100 140
40
50 90
130
30 80
20 0 70 120
Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Oct-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Source: CMIE Economic Outlook. NSE EPR.
Table 27: Wholesale price inflation for February 2024 (%YoY)

Weight (%) Feb-24 Jan-24 Feb-24 FY24TD FY23TD
WPI 0.2 0.3 3.9 (0.8) 10.2
Primary articles 22.6 4.5 3.8 3.6 3.4 10.8
Food articles 15.3 7.0 6.9 3.8 6.6 7.4
Non-food articles 4.1 (6.3) (6.6) - (5.7) 10.2
Minerals 0.8 2.9 7.6 (3.3) 7.3 3.9
Crude petroleum & natural gas 2.4 8.2 0.2 14.5 (3.7) 49.5
Fuel & power 13.2 (1.6) (0.5) 14.0 (5.0) 30.1
Coal 2.1 0.3 1.4 3.6 2.5 3.4
Mineral oils 8.0 (3.8) (1.1) 15.8 (8.4) 40.5
Electricity 3.1 3.5 (0.1) 15.6 1.1 22.1
Manufactured products 64.2 (1.3) (1.1) 1.9 (1.8) 6.2
Food group 24.4 4.1 3.8 2.8 3.1 6.7
Source: CSO, CMIE Economic Outlook. NSE EPR.
Figure 112: Category-wise contribution to India wholesale price index (WPI)
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Market Pulse
Figure 113: India wholesale price inflation (WPI)
Figure 114: Gap between wholesale and retail inflation

percentage points
Gap between CPI and WPI inflation
15.0
9.88 9.64
10.0 8.67
5.0
4.83
0.0
-5.0
-10.0
Feb-14
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Aug-19
Aug-20
Aug-21
Aug-22
Aug-23
Source: CMIE Economic Outlook. NSE EPR.
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Market Pulse
Trade Deficit increased in February led by gold imports

India's trade deficit widened to US$18.7 bn in February, up from January's nine-month low of US$16.5 bn. This was
on the back of a relatively stronger sequential expansion in imports (+12.8% MoM) as compared to exports (+12.2%
MoM). On a YoY basis, imports and exports grew at similar rates of 12.2% and 12.0%, respectively. The surge in exports
was led by electronic goods and engineering products, accounting for more than 30% of total exports in the month. In
fact, electronic goods exports registered a strong 54.8% YoY growth in February (+27% in Apr’23-Feb’24), a large part
of which is attributed to the boost provided by the Production Linked Incentive (PLI) scheme. The Agri-exports also
continued to rise in the month of February with a 7.0%YoY growth, majorly driven by Tabacco (58.2%), Dairy & Poultry
(37.8%), Oilseeds (37.7%) and Spices (14.8%). Exports of ready-made textiles registered a growth of 4.9%YoY as the
situation has begun to stabilize following previous cargo shipment delays due to the Red Sea issue. On the other hand,
imports saw broad-based growth in all categories, led by gold in the light of surge in international gold prices. Crude
oil imports remained broadly steady on a YoY basis while expanded by 8.8% on a sequential basis. Excluding crude oil
and gold, imports grew by a strong 8.8% YoY—the highest growth in 17 months.
The services balance remained in surplus at US$16.8 bn in February, underpinned by service exports that stood at an
all-time high of US$32.2 bn. The sustained strength in services exports, alongside a contraction in services imports,
has helped keep current account deficit levels contained. Despite the complex global economic environment, including
geopolitical tensions such as the attacks in the Red Sea, the ongoing conflict in Ukraine, and rising shipping costs,
India's exports have shown resilience, contributing positively to the country's external sector balance. This, along with
strong foreign capital inflows, should translate into a strong BoP surplus this year.
• Trade deficit widened in Feb’24: India’s merchandise trade deficit reversed the
falling trend experienced till last month, rising to US$ 18.7bn in February. This was
on account of a slightly higher sequential rise in imports (+12.7% MoM) as against
exports (+12.2% MoM), indicating an improvement in domestic demand
conditions. In the first 11 months of this fiscal, the trade balance improved with
the deficit contracting by 8.5% YoY, bolstered by a higher contraction in imports of
5.3%YoY vs. the exports at 3.4%YoY in the corresponding period.
• Exports rebounded sharply in February: Merchandise exports grew by a strong

11.9% YoY in February—the highest YoY expansion in 20 months, to an 11-month
high of US$ 41.4bn. This was primarily driven by robust performances in electronic
goods (+54.8%), engineering goods (+15.9%) and Petroleum (+5.1%) with boost
in sales of drugs and pharmaceuticals. This surge mitigated the impact of a
contraction in gems & jewellery exports. Government initiatives such as the PLI
scheme significantly bolstered electronic goods exports, which rose by 23.3% YoY
in FY24TD to US$ 29.9bn.
• Merchandise imports grew faster than exports; Gold and Non-oil non-gold
demand rise: On a YoY basis, merchandise imports grew at a faster pace compared
to exports, recording a 12.2%YoY growth. This was primarily led by a steep rise in
gold (+133.8%) and strong non-oil non-gold (+8.8%) imports, with the former
partly reflecting the impact of surge in international gold prices. While the non-oil
sector benefitted from a robust demand for electronic goods and surgical
instruments, recording a double-digit growth at 23.2% YoY and 11.4% YoY
respectively, the spike in oil prices contributed significantly to the oil imports. The
surge in non-oil non-gold imports at a 17-month high pace is an indication of
recovery in domestic demand conditions.
• Services exports outperformed: India’s services trade with the world remained
robust, with the net services balance rising to US$ 16.8bn on the back a strong
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growth in exports (+17.3% YoY) which rose by 17.3% YoY to all-time high monthly
figure of US$ 32.1bn in February. Conversely, services imports showed a more
modest uptick, registering a growth of 2.8% YoY to US$ 15.4bn. On a MoM basis,
both services exports and imports grew by 3.6% each. As such, the services trade
surplus widened to a record high of US$ 16.8bn in February. The overall trade
deficit–merchandise plus services—expanded meaningfully on a MoM basis to US$
1.9bn, even as it fell by 52.9% on a YoY basis. In the current fiscal thus far (Apr-
Feb’24), the services exports growth moderated to 6.8% from 43% growth in the
same period last year, while service imports contracted by 2% (vs. +39.1%YoY
FY23TD).
• India’s external position to remain strong despite a weak global backdrop: The
current geopolitical climate, underscored by sustained attacks on shipping routes
and the ongoing conflict in Ukraine, continues to present formidable obstacles for
international trade, with increased shipping costs posing significant challenges.
Moreover, with continent tight monetary policies in western world and major
economies like Japan and UK facing recessionary pressure, the global demand
conditions are experiencing weakness. As a result, the World Trade Organization
(WTO) anticipates a modest 3.3% increase in global trade for 2024. That said,
India’s exports performance has shown resilience, with Government schemes such
as the PLI providing strong impetus to certain sectors. This, along with strong
services exports, is expected to keep current account deficit levels contained this
and the next year.
Table 28: India monthly trade balance for February 2024

Trade
Exports Imports
balance
Oil Non-oil Gold
Total
US$ bn %YoY %YoY imports %YoY imports %YoY Import %YoY US$ bn
(US$ bn)
(US$ bn) (US$ bn) (US$ bn)
Feb-24 41.4 11.9 60.1 12.2 16.9 0.0 43.2 17.8 6.1 133.8 -18.7
Jan-23 36.9 3.1 53.4 1.0 15.5 -2.2 37.8 2.4 1.9 173.6 -16.5
Feb-23 37.0 -0.4 53.6 -4.2 16.9 7.1 36.7 -8.6 2.6 -45.0 -16.6
FY23TD 409.1 8.4 655.0 19.1 191.4 36.1 463.6 13.3 31.7 -29.7 -245.9
FY24TD 395.0 -3.4 620.2 -5.3 162.6 -15.0 457.6 -1.3 44.0 38.8 -225.2
Source: Ministry of Commerce, CMIE Economic Outlook. NSE EPR.
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Figure 115: India monthly trade balance trend
Source: Refinitiv Datastream. NSE EPR.
Figure 116: Non-oil, non-gold imports Figure 117: Oil imports trend
US$bn % US$bn %
Non-oil non-gold imports % YoY (R) Oil Imports % YoY (R)
45 150 25 250
40
200
35 100 20
150
30
50 15
25 100
20 50
0 10
15
0
10 (50) 5
(50)
5
0 (100) 0 (100)
Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24
Source: Ministry of Commerce, CMIE Economic Outlook. NSE EPR.
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Figure 118: Oil imports vs. Brent crude oil prices trend
US$bn Oil imports vs. prices US$/bbl
Oil Imports (LHS) Brent Crude (RHS)

25 160
140
20
120
100
15
80
10
60
40
5
20
0 0
Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24
Source: Refinitiv DataStream. CMIE Economic Outlook, NSE EPR.
Figure 119: Forex reserves and import cover (months)

US$ bn # of months
FX reserves (US$mn) Import cover ratio (months, RHS)
700 20
650 619
18
600
550 16
500
14
450
12
400 10.9
350 10
300
8
250
200 6
Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24
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Figure 120: INR vs. other key Asian market currencies
Source: Refinitiv DataStream, NSE EPR. As on February 29th, 2024.
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Union finances: fiscal deficit at 63.6% of RE in 10MFY24, remains in check

The Centre’s total receipts rose by 13.9% YoY in 10MFY24, thanks to robust net tax collections (+11.3% YoY) and non-
tax revenue (+46.4% YoY)—dividends & profits witnessed robust expansion of 91.3% YoY. Among the indirect taxes,
while monthly overall GST collections remained robust, with February collections remaining steady at Rs 1.7 lakh crore
(+12.5% YoY), contraction in excise duties (-6% YoY) pulled the overall growth in indirect taxes down (+4.9% YoY in
10MFY24). The Centre remained focused on capital spending, with cumulative capex registering a growth of ~26.5%,
reaching 75.9% of the revised estimate. Revenue expenditure, on the other hand, saw further moderation in growth to
1.4% YoY in Apr-Jan’24 from 2.3% YoY as of December, driven by a contraction in the subsidy bill. The gross fiscal
deficit for the first ten months of the fiscal stood at ~Rs 11 lakh crore—63.6% of RE—falling by 7.4% YoY. The recent
interim Budget has maintained the Centre’s thrust on fiscal prudence. The revised estimate for FY24 fiscal deficit is
now pegged 10bps lower at 5.8% of GDP, and that for next year is budgeted to fall to 5.1%.
• Robust revenue receipts on strong tax and non-tax revenues: In the first ten
months of FY24, total revenue receipts rose by 15.5% YoY to Rs 22.2 lakh crore.
This growth was primarily fueled by a robust 11.3% rise in net tax revenues,
totaling Rs 18.8 lakh crore, and a significant 46.4% surge in non-tax revenues to
Rs 3.4 lakh crore due to a rise in dividends and profits (+91.3% YoY to Rs 1.5 lakh
crore). Meanwhile, corporate tax collections saw a 20.1% YoY increase to Rs 7.6
lakh crore, while income tax collections accelerated by 27.3% YoY to Rs 7.5 lakh
crore, resulting in a 23.6% YoY uptick in direct tax collections to Rs 15 lakh crore.
Additionally, monthly GST collections continued to show positive momentum,
reaching Rs 1.7 lakh crore in Febr’24—a 12.5% growth, compared to the 10.4%
growth observed in the previous month. Despite these gains, indirect taxes
recorded a modest 4.9% growth in the first ten months, primarily due to a 6.0%
YoY contraction in excise duties. However, divestment progress remained minimal,
with miscellaneous receipts, including divestments, contracting by nearly 68% YoY
to Rs 12,452 crore, which translate into just 41.5% of the FY24RE.
• Moderate revenue expenditure amidst robust capex growth: Cumulative

revenue expenditure in the first 10 months of the fiscal witnessed a modest
increase of 1.4% YoY, primarily influenced by a 21.0% YoY decline in the subsidy
bill. This reduction was driven by a notable drop in food (22.5% YoY) and fertilizer
subsidies (19.9% YoY) during this period. However, interest payments experienced
an 11.2% YoY increase over the first ten months of the fiscal year. On the capital
expenditure (Capex) front, there was a notable increase of 26.5% YoY, reaching
75.9% of the RE, though this was slightly below the previous year's allocation of
78.3% of RE. Despite this overall increase, capex in Jan’24 fell sharply by 40.5%
YoY to Rs. 47,557 crore, after a 24.4% rise in Q3FY24. Over the first ten months,
capex amounted to Rs 7.2 lakh crore (vs Rs 5.7 lakh crore in 10MFY23),
representing 21.5% of total expenditure compared to ~18% the previous year.
• FD at 63.6% of FY24RE, fisc in check: In the fiscal thus far, revenue receipt
growth (15.5% YoY) outpaced revenue expenditure growth (1.4% YoY). This led to
a reduction in the revenue deficit to Rs 4.2 lakh crore from Rs 6.8 lakh crore I nteh
same period of the previous year. The gross fiscal deficit also declined to ~Rs 11.0
lakh crore, falling 7.4% YoY from Rs 11.9 lakh crore in 10MFY23, amidst a 26.5%
YoY rise in capex, thanks to strong revenue receipts and lower revenue
expenditure. The recent interim Budget has maintained the Centre’s thrust on
fiscal prudence. The revised estimate for FY24 fiscal deficit is now pegged 10bps
lower at 5.8% of GDP, and that for next year is budgeted to fall to 5.1%.
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Figure 121: Yearly trend of India’s fiscal balances
Figure 122: Gross fiscal deficit as % of budget targets during April-January

%
FD as a % of BE Avg for Apr-Jan
250
197.2
200
163.4
155.0
150 140.0
123.8 123.5
105.4 107.0 105.7
92.4 98.2 95.8
100 87.2 90.7
83.2
75.5 74.7 71.7
66.4 63.5 61.7
58.3
50
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY11 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY23 FY24
Source: CMIE Economic Outlook, CGA, NSE EPR.
Figure 123: Centre’s gross fiscal trend (% GDP) Table 29: A quick glance at Centre’s fiscal balances
Fiscal deficit trend (% of GDP) Rs crore FY23 A FY24RE % YoY FY25BE % YoY
10.0 9.2 Net tax
9.0 20,97,785 23,23,918 10.8 26,01,573 11.9
revenues
8.0 Non-tax
2,85,420 3,75,795 31.7 3,99,701 6.4
6.6 6.7 revenues
7.0 6.4
5.9 5.95.8 Non-debt cap
6.0 72,196 56,000 -22.4 79,000 41.1
4.9 4.9 5.1 rec.
4.5 4.7
5.0 4.13.9 Total
24,55,401 27,55,713 12.2 30,80,274 11.8
4.0 3.53.53.4 receipts
3.0 Revenue Exp 34,53,132 35,40,239 2.5 36,54,657 3.2

2.0 Capital Exp 7,40,025 9,50,246 28.4 11,11,111 16.9
1.0 Total
41,93,157 44,90,485 7.1 47,65,768 6.1
0.0 expenditure
FY13
FY10
FY11
FY12
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23A
FY24BE
FY24RE
FY25BE
Fiscal deficit 17,37,756 17,34,772 -0.2 16,85,494 -2.8
% Of GDP 6.4 5.8 5.1
Source: CMIE Economic Outlook, CGA, NSE. BE = Budget Estimates, RE = Revised Estimates, A = Actual. * FY22 actual figures are provisional number released by CGA.
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Figure 124: Direct tax collections trend during Apr-Jan Figure 125: Indirect tax receipts trend during Apr-Jan
Rs. bn Direct tax collections trend % Rs. bn Indirect tax collections trend %
Direct Tax collections % YoY (RHS) Indirect tax collections % YoY (RHS)
16,000 60
14,000 40
14,000 50
12,000 20
12,000 40
10,000
10,000 30 0
8,000
8,000 20 -20
6,000
6,000 10 -40
4,000
4,000 0
2,000 -60
2,000 -10
0 -80
0 -20
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY14
FY12
FY13
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: CMIE Economic Outlook, CGA, NSE EPR.
Figure 126: Year average of monthly collections Figure 127: GST collections trend
Rs crore Rs lakh crore
Monthly average GST collections Monthly GST collections
1,80,000 1,67,072 FY18 FY19 FY20 FY21

FY22 FY23 FY24
1,60,000
2.0
1,40,000 1.8 1.68
1,20,000 1.6
1,00,000 1.4
80,000 1.2
60,000 1.0
0.8
40,000
0.6
20,000
0.4
-
0.2
FY23
FY18
FY19
FY20
FY21
FY22
FY24TD
0.0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Source: CMIE Economic Outlook, CGA, PIB, NSE EPR.
Figure 128: Revenue and capital exp during Apr-Jan Figure 129: Expenditure mix during Apr-Jan
Rs lakh crore Expenditure break-up % % Share of revenue and capital expenditure in total
Revenue Exp. expenditure trend
Capital Exp. Revenue Expenditure Capital Expenditure
100
40 % YoY growth in revex 50 11.8 11.7 13.3 10.7 14.5 12.6 14.4 11.5 11.8 14.4 15.7
90 17.9 21.5
Millions
% YoY growth in capex

35 80
30 7.2 70
5.6
4.4 25 60
25
3.6
2.7 50
20 88.2 88.3 86.7 89.3 85.5 87.4 85.6 88.5 88.2 85.6 84.3
2.3 82.1 78.5
2.6 40
15 2.0
2.1 23.7 25.5 0 30
1.7 1.4
10 1.2
1.3 20.0 21.6 26.3 20
17.7
14.1 15.8
5 11.0 11.9 12.3 10
8.8 9.8
0
0 -25
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: CMIE Economic Outlook, CGA, PIB, NSE EPR.
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Table 30: A snapshot of government finances for Provisional estimates for Jan’24
Items (Rs crore) April-Jan FY23 April-Jan FY24 Implied for Feb-Mar’24
Rs crore Rs crore % YoY Rs crore % YoY
Net tax revenues 16,88,710 18,79,840 11.3 4,44,078 8.7
Gross tax revenues 23,62,677 27,06,197 14.5 7,31,014 5.8
Of which:
Direct Tax 12,16,628 15,03,821 23.6 4,41,179 5.7
Corporation tax 6,29,013 7,55,569 20.1 1,67,106 (15.1)
Income tax 5,87,615 7,48,252 27.3 2,74,073 24.2
Indirect Tax 11,46,049 12,02,376 4.9 2,89,835 5.9
Goods and service tax 7,02,626 7,65,943 9.0 1,90,657 26.4
Custom Duties 1,73,375 1,75,052 1.0 43,628 9.1
Excise Duties 2,43,608 2,28,968 (6.0) 74,632 (1.0)
States Share (6,67,770) (8,20,250) 22.8 (2,84,243) 1.3
Transferred to NCCD (6,197) (6,107) (1.5) (2,693) 49.4
Non-Tax Revenue 2,30,939 3,38,069 46.4 37,726 -31.7
Dividends and profits 77,303 1,47,848 91.3 6,559 (70.9)
Other non-tax revenues 1,53,636 1,90,221 23.8 31,167 (4.5)
Central govt. revenue receipts 19,19,649 22,17,909 15.5 4,81,804 3.9
Non-Debt Capital Receipts 57,194 34,219 (40.2) 21,781 45.3
Recovery of Loans 18,523 21,767 17.5 4,233 (44.5)
Misc. receipts (inc. divestment) 38,671 12,452 (67.8) 17,548 138.3
Total Receipts 19,76,843 22,52,128 13.9 5,03,585 5.2
Revenue Expenditure 25,97,756 26,33,543 1.4 9,06,696 6.1
Interest Payments 7,38,658 8,21,731 11.2 2,33,696 23.1
Major subsidies 3,99,400 3,15,559 (21.0) 1,24,978 (5.0)
Food 1,91,232 1,48,140 (22.5) 64,192 (21.3)
Fertilizer 2,06,606 1,65,549 (19.9) 23,345 (47.8)
Petroleum 1,562.0 1,870.2 19.7 10,369.8 97.3
Other revenue expenditure 14,59,698 14,96,253 2.5 5,48,022 2.7
Capital Expenditure 5,69,892 7,21,187 26.5 2,29,059 37.6
Total Expenditure 31,67,648 33,54,730 5.9 11,35,755 11.2
Fiscal Deficit 11,90,805 11,02,602 -7.4 6,32,170 16.6
Source: CMIE Economic Outlook, CGA, Budget Documents, NSE EPR.
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Table 31: A snapshot of Government finances in 2024-25

Items FY23A FY24 FY25
BE RE BE % YoY
Rs lakh % chg.
% YoY (Rs lakh % YoY (Rs lakh % YoY (Rs lakh over
crore from BE
crore) crore) crore) FY22RE
Central govt. net tax revenue 21.0 16.2 23.3 10.9 23.3 10.8 (0.1) 26.1 11.9
Gross tax revenues 30.5 12.7 33.6 9.9 34.4 12.5 2.4 38.4 11.4
Of which:
Direct Tax 16.6 17.8 18.2 9.6 19.5 17.2 6.9 22.0 13.0
Corporation tax 8.3 16.0 9.2 11.7 9.2 11.7 0.0 10.4 13.0
Income tax 8.3 19.7 9.0 8.1 10.2 22.7 13.5 11.6 13.1
Indirect Tax 14.0 7.2 15.4 10.2 14.9 7.0 (3.0) 16.3 9.4
Goods and service tax 8.5 21.6 9.6 12.7 9.6 12.7 0.0 10.7 11.6
Custom Duties 2.1 6.8 2.3 9.2 2.2 2.5 (6.2) 2.3 5.8
Excise Duties 3.2 (19.2) 3.4 6.3 3.0 (4.8) (10.4) 3.2 5.0
States Share (9.5) 5.6 (10.2) 7.7 (11.0) 16.5 8.1 (12.2) 10.4
Transferred to NCCD (0.1) 30.5 (0.1) 9.7 (0.1) 10.0 0.2 (0.1) 7.3
Non-Tax Revenue 2.9 (21.8) 3.0 5.7 3.8 31.7 24.6 4.0 6.4
Dividends and profits 1.0 (37.8) 0.9 (8.9) 1.5 54.5 69.7 1.5 (2.9)
Central govt. revenue receipts 23.8 9.8 26.3 10.2 27.0 13.3 2.7 30.1 11.2
Non-Debt Capital Receipts 0.7 83.4 0.8 16.3 0.6 (22.4) (33.3) 0.8 41.1
Divestment proceeds 0.5 214.5 0.6 32.5 0.3 (34.8) (50.8) 0.5 66.7
Total Receipts 24.6 11.1 27.2 10.4 27.6 12.2 1.6 30.8 11.8
Revenue Expenditure 34.5 7.9 35.0 1.4 35.4 2.5 1.1 36.5 3.2
Interest Payments 9.3 15.3 10.8 16.3 10.6 13.7 (2.3) 11.9 12.8
Subsidy outgo 5.8 14.7 4.0 (30.3) 4.4 (23.8) 9.3 4.1 (7.0)
Capital Expenditure 7.4 24.8 10.0 35.3 9.5 28.4 (5.1) 11.1 16.9
Total Expenditure 41.9 10.5 45.0 7.4 44.9 7.1 (0.3) 47.7 6.1
Fiscal Deficit (17.4) 9.7 (17.9) 3.1 (17.3) (0.2) (3.2) (16.8) (2.9)
Fiscal Deficit/GDP (6.4) (5.9) (5.8) (5.1)
Source: Budget Documents, NSE EPR. BE: Budget Estimates; RE: Revised Estimates; A = Actual. Growth in FY24BE and FY24RE figures are on FY23 actual figures.
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Global macro snippets: Time for cautious optimism

The global economy is currently navigating through a period of cautious optimism, marked by a patchwork of recovery
signals and lingering uncertainties. In the United States, a steady GDP growth rate and a stable unemployment rate
reflect an economy that is resilient. China's modest GDP growth and improving inflation dynamics indicate a gradual
economic rebound. The UK's economy also shows positive signs, with moderate GDP growth after a contraction in
Dec’23, while consumer sentiment shows improvement.
Going forward, the growth for this year is expected to be at a slower pace compared to 2023, even as the likelihood of
a global recession is remote. While the major central banks have continued to remain cautious about premature easing
even as inflationary pressures are coming off, weakening growth and demand conditions advances the possibility of
policy rate cuts. Along with persistent global inflation, the geopolitical tensions arising from the continued Russia-
Ukraine conflict and disruptions in global shipping due to the Red Sea attacks will continue to act as headwinds facing
global economy.
• US economy stays resilient: The US economy continued to show strong economic

activity as the economy expanded by annualized 3.2% in Q4FY23 (vs 4.9% in
Q3FY23) on the back of strong government & consumer spending and investments.
The S&P Global US Composite PMI inched up higher standing at 52.5 in Feb’24-
the highest since June 2023- as both manufacturing and services sector activity
grew. The headline inflation also increased marginally to 3.2% in Feb’24 (vs 3.1%
in Jan’24) and gaining momentum sequentially even as the core inflation continued
to ease. The labour market continued to beat expectations adding 75K jobs in
Feb’24 (vs 229K in Jan’24) primarily led by additions in healthcare and government
sector. The continued strong performance of the economy despite the tight
monetary conditions has led to some revisions in rate cut expectations with the
federal reserve leaving the policy rate unchanged at 5.25%-5.5% in the March
meeting. The recent FOMC dot plot indicated three rate cuts later this year and
three in 2025 as the economy heads for a soft landing.
• Chinese economy continues to recover: In the fourth quarter, China's GDP
expanded by 5.20% (vs. 4.9% in Q3FY24) on the back of strong industrial
production which grew by 7% YoY in Feb’24, fastest in two years. The
manufacturing sector showed resilience with the composite PMI Output Index
holding steady at 50.9 in Feb’ 24 marking fourth straight month of expansion and
at the highest level since August 2023. The headline inflation turned positive rising
by 0.7% YoY in Feb’24 (vs -0.8% in Jan’24) as the People's Bank of China (PBOC)
stayed accommodative indicating further rate cuts. Despite the recovery, the
country continues to face major challenges, including an unemployment rate in
urban areas that stood at approximately 5.3 % in Feb’24 and continued weakness
in the property sector.
• The Eurozone economy stays weak: The growth in the eurozone remained feeble
as it expanded marginally by 0.1% YoY in Q4FY24. After recovering in early 2024,
the manufacturing PMI fell to a three-month low of 45.7 in Mar’24 marking the 20th
consecutive month of contraction, while the services PMI improved to 51.1 in
Mar’24 from 50.2 in the previous month marking second month of expansion after
six month of continuous contraction. The inflation rate continued to inch
downwards falling to 2.6% YoY in Feb’24 with core falling to the lowest levels since
March 2022. The European Central Bank revised both the inflation and growth
projections downwards as it kept the policy rate unchanged at 4.5% in the march
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Market Pulse
meeting indicating its adherence to bringing inflation to the 2% target despite the
looming recession fears.
• Japan exits zero interest rate policy: Japan saw a momentous shift in its
monetary policy, with the Bank of Japan exiting its negative interest rate policy and
setting the interest rate at 0.1%. This move is significant as it marks the first rake
hike in Japan in 17 years and signals the BoJ’s commitment to curbing rising price
pressures. In line with expectations, the headline inflation rate rose to 2.8% in
Feb’24 (vs. 2.2% in Jan’24), the highest since November last year with core also
rising remaining above the central bank’s 2% target. The unemployment rate
remains low at 2.40 % as of December 2023, reflecting the resilience of the
Japanese labour market. Services PMI rose sharply to 54.9 in Mar’24, marking the
19th straight month of expansion. The manufacturing sector also showed signs of
recovery even while remaining in the contractionary zone with PMI increasing to
48.2 in March, up from the 42-month low of 47.2 recorded in February. Overall,
Japan's economy is showing signs of stability and resilience, with a low
unemployment rate and improving inflation dynamics.
• UK economy in sluggish recovery: The monthly UK GDP grew by 0.2% in Jan’24

after falling by 0.1% in December last year. The services PMI remained in the
expansionary zone for the fifth straight month at 53.4 in Mar’24, edging down from
53.8 in the previous month. The manufacturing sector also showed signs of
recovery, nearly entering the expansionary zone with PMI rising to 49.9 in March
from 47.5 in February. Headline inflation came down sharply, dropping from 4% in
Jan’24 to 3.4% in Feb’24 (lowest since Sep’21) with core inflation also slowing to
4.5%. The Bank of England decided to keep the policy rate unchanged at 5.25%
with members indicating the need to keep the monetary conditions tight until clear
signs are visible that inflationary pressures have subsided.
Figure 130: Global Growth and Outlook by the IMF
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Figure 131: Inflation Across Major Economies
Figure 132: Growth Across Major Economies
Source: Refinitiv DataStream, NSE EPR
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Figure 133: Policy rates across major central banks
Figure 134: Policy rates across emerging markets central banks
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Figure 135: Unemployment Rates
Figure 136: Trend in PMI manufacturing across countries
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Figure 137: Consumer Confidence Index across major economies
Source: Refinitiv DataStream, NSE EPR
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Insights
Highly cited research paper 1 in the field of Behavioural Science
Reducing Algorithm Aversion through Experience5
Ibrahim Filiz 6 Jan René Judek 7 Marco Lorenz 8 Markus Spiwoks 9
Research Paper summary prepared by Kathryn Nicole Sam 10 and Varuna Joshi 11 7F 8F 8F
1. Introduction
Customers are becoming increasingly concerned about bank charges and this puts pressure on banks to reduce their
costs. In the field of asset management, banks try to reduce personnel costs when serving customers with low-to-
medium amounts of assets. One method of cost-reduction is to use robo-advisors. Besides being cheaper, these
automated advisors avoid errors in investment decisions that human advisors make when relying on gut feelings.
Many people, however, have algorithm aversion—a reluctance to use algorithms, even when they perform better than
humans. Research suggests that many individuals trust themselves more than algorithms despite indications that
algorithms will make better decisions in the long run. The authors observe that overconfidence in one’s own abilities
may play a role in algorithm aversion. However, it is possible that individuals can learn how to be more realistic in
assessing their abilities. Previous research suggested that financial incentives, multiple instances of feedback, and
gradually developing individuals’ experiences help reduce overconfidence.
The aim of this study is to investigate whether algorithm aversion could be reduced by providing individuals with
repeated decision-making situations, clear feedback, and financial incentives. This has been done in the context of
forecasting share prices, through a task where subjects could either make the forecasts themselves or trust an
algorithm.
2. Hypothesis
H1. Some subjects will—at least sometimes—choose not to delegate forecasting to the algorithm.
H2. In the last 5 (10/15/20) rounds of forecasting, the subjects will trust the algorithm significantly more often than
they did in the first 5 (10/15/20) rounds.
3. Data and Methodology

143 subjects took part in a computerized experiment. The experiment had 40 rounds or time periods. In each period,
subjects had to predict whether the price of a stock would increase or decrease and received €0.50 for each correct
answer.
Subjects were provided with information about how the price was determined. The stock price was influenced by four
factors (A, B, C, and D), as well as a random influence, ɛ. The random influence had given properties (an expected value
of 0 and a specific probability distribution). Subjects were also informed of the formula for calculating the stock price.
5
Filiz, I., Judek, J. R., Lorenz, M., & Spiwoks, M. (2021). Reducing algorithm aversion through experience. Journal of Behavioral and Experimental Finance, 31, Article
100524
6
Faculty of Business, Ostfalia University of Applied Sciences
7
8
Faculty of Economic Sciences, Georg August University Göttingen
9
10
Research Associate, Indian Institute of Management, Ahmedabad (IIMA)
11
Coordinator, NSE-Centre for Behavioral Science, Indian Institute of Management, Ahmedabad
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In each round, subjects were given the values of A, B, C, and D. They could then make the prediction themselves or rely
on an algorithm. The algorithm used the given data optimally, leading to a correct prediction 70% of the time.
There were, therefore, three possible strategies that subjects could use:
1. Guess the trend of price based on intuition, which would lead to a correct answer in roughly 50% of cases.
2. Calculate the price based on all available information (a pen, paper, and pocket calculator were provided to aid
this strategy). This would lead to a correct answer roughly 70% of the time.
3. Delegate the task to the algorithm. This would also lead to a correct answer roughly 70% of the time.
Strategy 1 results in the lowest payment. Strategies 2 and 3 yield equivalent compensation; however, strategy 2 is time-
consuming and error prone. The rational approach would thus be to choose strategy 3.
The researchers used a t-test to test hypothesis 1. They used regression analysis (linear regression and logarithmic
regression) and a Wilcoxon signed-rank test to test hypothesis 2. They also reported descriptive statistics. The effect
sizes of the learning processes were assessed using both Pearson’s r and Cohen’s d.
4. Summary of Results
• Subjects delegated to the algorithm only 45.9% of the time. The t-test was significant and provided support for
hypothesis 1—subjects chose not to delegate in some cases.
• There was a significant increase in decisions supporting the algorithm over time, supporting hypothesis 2.
Regardless of whether one compares the first 5 rounds with the last 5, the first 10 with the last 10, the first 15
with the last 15, or the first 20 with the last 20, algorithm aversion declined over time.
• The size of the learning effect was moderate when assessed using Cohen’s d, and strong when assessed using
Pearson’s r.
• There were still subjects who continued to use their own decisions towards the end of the experiment. In rounds
36-40, a little less than 49% of decisions were made without the algorithm.
5. Conclusion and Implications

The study indicated that learning processes can weaken algorithm aversion. The researchers contended that many
subjects recognized their intuitive decisions were inferior to the algorithms’ decisions within the first ten rounds and
were ready to trust the algorithm more. They learnt to be less overconfident, and hence their algorithm aversion
reduced. However, there are other factors contributing to algorithm aversion that cannot be addressed by recognizing
that algorithms are superior. For many, algorithm aversion did not reduce over the 40 rounds. This study has
implications for future research on algorithm aversion and for the banking sector.
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COVID‑19 Vaccination Effect on Stock Market and Death Rate in India12
Jyotirmayee Behera 13 Ajit Kumar Pasayat 14 Harekrushna Behera 15
Research Paper summary prepared by Ram Prasad Behera 16 and Varuna Joshi 17 14F
1. Introduction
The Coronavirus pandemic, declared by the World Health Organization in March 2020, has led to a global health crisis
and economic disaster. Researchers have extensively studied its impact on financial markets, showing adverse effects
on stock prices and other asset classes. However, the arrival of COVID-19 vaccines offered a beacon of hope in India's
fight against the pandemic. Examining their effects, this study finds that immunization positively correlates with a
stable stock market and a decrease in the death rate. Machine learning techniques and statistical data analysis were
employed to analyze this relationship, suggesting that continued vaccination efforts are vital for public health and
economic recovery. With ongoing government and monetary support, India can pave the way for a brighter future.
2. Hypothesis
The study revolves around two main objectives: first, to explore the impact of COVID-19 immunization on the Indian
stock market, and second, to predict the mortality rate in response to the vaccination process.
The study assumes that there is a relationship between COVID-19 immunization efforts and the performance of the
Indian stock market, for which two hypotheses as, Null (H0) and Alternative hypothesis (Ha), are defined –
H0: There will be no significant relationship between vaccination and the stock market in India.
Ha: There will be a significant relationship between vaccination and the stock market in India.
Similarly, for vaccination and death rate, two hypotheses are defined –
H0: There will be no significant relationship between vaccination and the death rate in India.
Ha: There will be a significant relationship between vaccination and the death rate in India.

The impact of the COVID-19 vaccination on the stock market in India is examined using daily S&P SENSEX data from
February 1, 2021, to July 30, 2021. Additionally, information on immunization and death rates is obtained from the
MoHFW website.
Exploratory Data Analysis (EDA) examines the relationships between vaccination, stock market performance, and
mortality rates. Descriptive statistics summarize dataset characteristics, while correlation analysis reveals
associations between variables, indicating a positive correlation between vaccination and stock market performance
but a negative correlation between vaccination, and death rate. Hypotheses testing confirms significant relationships
between vaccination, the stock market and death rates. Correlation analysis and descriptive statistics are carried out
using the Statistical Package for the Social Sciences (SPSS) program.
12
Jyotirmayee Behera, A. K. (2022). COVID 19 Vaccination Effect on Stock Market and Death Rate in India. Asia-Pacifc Financial Markets, 29: 651-673.
doi:https://doi.org/10.1007/s10690-022-09364-w.
13
Department of Mathematics, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu, Tamil Nadu 603203, India
14
Indian Institute of Technology, Kharagpur, Kharagpur, West Bengal 721302, India
15
Department of Mathematics, SRM Institute of Science and Technology, Kattankulathur, Chengalpattu, Tamil Nadu 603203, India
16
Research Assistant, Indian Institute of Management, Ahmedabad (IIMA)
17
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Machine Learning models, including Linear Regression, Support Vector Regression, KNN Regression, and Random
Forest Regression, are employed to predict stock market closing prices and mortality rates based on vaccination data.
Regression analysis assesses model performance using metrics like R2 value, Mean Squared Error (MSE), and Mean
Absolute Error (MAE). Using statistical and machine learning techniques, the study aims to comprehend the effect of
COVID-19 immunization on the Indian stock market and death rates.
4. Summary of results
Descriptive statistics reveal mean and standard deviation values, indicating no missing data with a sample size of 119.
Correlation analysis shows a significant positive correlation (r = 0.627) between total vaccinated people and stock
market closing prices with a level of significance less than 0.001, suggesting that as vaccination rates increase, stock
prices tend to rise. The null hypothesis was thus rejected in this instance since there is a noteworthy correlation
between immunization and the Indian stock market.
Additionally, a negative correlation (r = -0.389) exists between total vaccinated people and death rates with a level of
significance less than 0.001, indicating that higher vaccination rates correspond to lower mortality rates. Likewise, this
instance also rejects the null hypothesis.
Machine Learning models, including Linear Regression, Support Vector Regression, Random Forest Regression, and
KNN Regression, are applied to predict stock market closing prices and mortality rates based on vaccination data. The
models' performance is evaluated using metrics such as R 2 score, MSE, and MAE. Results show that Support Vector
Regression performs the best for stock market prediction (R 2 = 91%, MSE = 0.006, MAE = 0.058) while the Random
Forest Regression model performs best for mortality rate prediction (R 2 = 87%, MSE = 0.078, MAE = 0.067).

The study investigates the impact of COVID-19 vaccination on the Indian economy, focusing on the stock market and
mortality rates. EDA and statistical data analysis are employed to visually analyze key features of the dataset and
demonstrate correlations between vaccination, stock market performance, and mortality rates. The results show a
negative link between vaccination and mortality rates and a positive correlation between the total number of
vaccinated people and closing stock market prices. The Machine Learning Regression models' findings demonstrate
the beneficial effects of vaccination on India's mortality rates and stock market. The study concludes that increasing
vaccination rates contributes to stock market stability and reduced mortality rates, suggesting a positive outlook for
the Indian economy. Limitations of the study include the relatively short and recent dataset, with suggestions for future
research to explore additional indicators, conduct micro and macro-level analyses, and employ alternative statistical
or econometric methods.
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Naïve Buying Diversification and Narrow Framing by Individual Investors 18
John Gathergood 19 David Hirshleifer20 David Leake21 Hiroaki Sakaguchi22
Neil Stewart23
Research Paper summary prepared by S Vishwath 24 and Varuna Joshi 25 1 9F
1. Introduction
This paper is a data study into the buying behavior of retail investors. The paper introduces a term called Naïve Buying
Diversification (NBD). NBD is defined as the behavior exhibited by investors when they balance the values of same-day
purchases of multiple assets. NBD is contrasted to Naïve Portfolio Diversification (NPD), wherein the investor balances
the value of assets in their portfolio.
The study postulates that an average investor uses a 1/N heuristic to divide the amount for the same buy-day
investments such as stocks, funds etc., as opposed to dividing the investment amount using the 1/N heuristic for the
overall portfolio. NBD affects the balance of the portfolio since it is prone to increasing the proportion of a few stocks
as opposed to NPD where the investor is actively rebalancing the portfolio. Portfolio theory states that the balance of
the portfolio is directly proportional to the risk burden of the investor. Despite theory suggesting that NPD is better, this
paper aims to prove that the average investor engages in NBD far more commonly than in NPD.
2. Hypothesis
• H1: Investors engage in Naïve Buying Diversification (NBD) significantly more than Naïve Portfolio
Diversification (NPD).

The authors used data from Barclays Wealth, a U.K-based broker. The data consisted of transaction histories of
182,569 accounts held with the broker between April 2012 and June 2016. They defined a baseline sample of 118,169
accounts eliminating accounts with no activity. The data included stock identification numbers, transaction dates,
transaction types, transaction quantities and transaction prices. Stock identification numbers were used to match
stock product and performance information.
To analyze NBD, the analysis required multiple-stock buy days to determine whether investors use 1/N heuristic to
divide investment amount into stock products. In the sample, multiple-stock buy days accounted for 30.8% of the total
amount invested over the considered period in the sample. To analyze investor behavior contrasting NBD and NPD, the
study required complete portfolio position before any transaction by the investor. For this part of the study, a
subsample with accounts opened within the data period. This restriction provided 8,982 accounts which constitutes
43.1% of total accounts. This subsample included 25,507 multiple-stock buy days which was 16.3% of buy days in
the subsample.
To test the existence of NBD, the percentage of investment for each stock in the total buy day investment was
calculated. This is to examine whether investors used the 1/N heuristic for investment decisions on the same buy day.
18
Gathergood, J., Hirshleifer, D., Leake, D., Sakaguchi, H., & Stewart, N. (2023). Naive buying diversification and narrow framing by individual investors. The Journal of
Finance, 78(3), 1705-1741. https://doi.org/10.1111/jofi.13222
19
University of Nottingham
20
Marshall School of Business
21
Barclays Wealth and Investment Management, Behavioral Finance Group
22
University of Warwick
23
University of Warwick, Warwick Business School
24
Research Associate, Indian Institute of Management, Ahmedabad (IIMA)
25
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The paper also examined multiple products buy days where the investor bought stocks and other products like ETFs.
The study also extended NBD studies to weeks and months where they studied multiple stock buy weeks and buy
months.
4. Summary of Results
The team’s analysis found that investor’s fund allocation exhibited NBD in 39.1% cases of the considered sample when
allowed an error of 0.1 i.e., if the investor had bought 2 stocks on a single day, the fund allocation was within 45-55%.
This range is to include fund allocation where equal allocations would be impossible to indivisible stock values. The
analysis also revealed NBD in stock and fund buy days sample where the prevalence rate was 36.3%. For multiple-
stock buy weeks and multiple-stock by months, NBD prevalence was 14.3% and 10% respectively. The study then
analyzed top-up days to find out whether investors engage in portfolio rebalancing to achieve NPD. From the analysis
of the sample, they found out that only 0.2% of cases engage in NPD while 28.6% engage in NBD. Further analysis with
multiple stock buy weeks and buy months showed the absence of NPD in these cases as well.
The research analyzed all buy days from the overall sample and found that only 0.8% of the portfolio had 1/N balancing.
Even in this case, the occurrence of NBD is much greater than that of NPD. To determine why investors, use the 1/N
heuristic, the study examined investor behavior using two theories, stock-picking hypothesis, and diversification
hypothesis. In the stock-picking hypothesis, investors are attracted to multiple stocks based on media buzz,
information etc., and proceed to invest equal amount in each of these stocks irrespective of the correlation between
them. In the diversification hypothesis, the investor actively chooses stocks with low correlation with the intention of
reducing risk. Empirical data revealed that the investors engage in picking attractive stocks and investing equal
amounts in them.
The team proceeded to analyze the portfolio performance of NBD investors. The analysis of the data revealed that
investors who never engaged in NBD earn approximately one-third higher than investors who engage in NBD. Further
analysis proved that NBD investors do not consider risk reduction. Another way to achieve NPD is through selling stocks
to rebalance the portfolio. The data analysis shows that this phenomenon, which is termed Naïve Selling Diversification
(NSD), is very rare. The research also determined that investors use the 1/N heuristic as a simple way to buy stocks
and distribute the amount easily. This was proved by observing the fact that the invested amount on multiple buy days
was a multiple of the number of stocks invested in. This also rejects the notion that NBD arises due to investors always
investing a constant amount per stock.

The paper proves investors use the 1/N heuristic to simplify the investment approach of their buy days by allocating
equal amounts to all products. This is termed NBD. The propensity to use NBD reduces with investor experience and
financial stakes. However, even in cases with high investor experience, NBD prevalence was higher than 20%.
Investors engage in narrow framing i.e., they diversify stocks only within their buy days and fail to consider their
portfolio diversification. This phenomenon can also be called transactional framing. The results also show that
investors engage in narrow framing on incremental purchases of stock in their portfolio thereby affecting the relative
weights of the products in their portfolio. The research suggests that transactional framing should be incorporated into
behavioral models of investment research. The research also explores the impact of the findings on post-retirement
savings schemes such as pension schemes. Investors in such schemes would be prone to engage in NBD and thus
ignore their portfolio diversification. The scheme suggesting portfolio rebalancing while the investors make their
monthly transaction would improve the investor’s portfolio quality. Future research scope would be to study whether
such a scheme would improve investor performance.
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Market performance
Market round-up
India equities take a breather amidst global risk-on
Global equities rebounded in February, aided by robust corporate earnings in the US and a strong rally in Chinese equity
markets, notwithstanding adjustments to rate-cut expectations. Developed equities (MSCI World Index) generated a
return of 4.1% in February (YTD: +7.1%, As of March 19th, 2024), thanks to strong gains reported by the US and
Japanese equity markets. Emerging markets, however, outperformed after remaining on the sidelines over the
previous few months. The MSCI EM Index ended the month 4.6% higher, a large part of which is attributed to strong
rebound in the Chinese equities on the back of economic stabilization efforts and policy support. Global debt remained
under pressure in February, weighed down by recalibrated rate-cut expectations in the light of resilient economic
performance and higher-than-expected inflation readings. The US 10-year yield has surged by 44bps in 2024 thus far
to 4.3% (As of March 19th, 2024), while that in the UK and Europe rose by 52bps and 42bps to 4.1% and 2.4%
respectively.
Indian equities edged marginally higher in February, supported by strong economic fundamentals, and robust
domestic participation. That said, it underperformed the global emerging as well as developed market counterparts
during the month, as stretched valuations resulted in some profit booking, particularly in mid- and small-cap
companies. The benchmark Nifty 50 Index ended the month of February with a modest gain of 1.2%, only to correct
marginally this month (YTD: +0.4%, as of March 19th, 2024). The rally in small- and mid-caps, however, came to a half
last month, with the Nifty Midcap 100 and Nifty Smallcap 250 Indices falling by 0.5% and 0.7% in February and further
by 5% and 8.3% in March thus far respectively. The Indian debt, on the other hand, traded in a range-bound manner
despite the sell-off in global bond markets, aided by a higher-than-expected pace of fiscal consolidation, lower-than-
expected planned borrowings by the Centre and robust foreign capital inflows.
• Domestic markets remained on sidelines in February: Indian equities edged
The benchmark Nifty 50
marginally higher in February, and touched all-time high levels during the month, Index ended the month of
aided by a pro-growth Interim budget, strong economic growth, favourable global February with a modest
cues and strong domestic participation. That said, it underperformed the global gain of 1.2%, only to
emerging as well as developed market counterparts during the month, as stretched correct marginally this
valuations resulted in some profit booking, particularly in mid- and small-cap month, translating into an
YTD gain of 0.4%
companies. The benchmark Nifty 50 Index ended the month of February with a
(FY24TD: +25.7%, As of
modest gain of 1.2%, touching a fresh all-time high of 22,217 during the month, March 19tt, 2024).
only to correct marginally this month. The small and mid-cap stocks, however, have
seen some correction over the last month or so, thanks to stretched valuations and
the resultant profit booking. The Nifty Midcap 100 and Nifty Smallcap 250 Indices
fell by 0.5% and 0.7% in February and further by 5% and 8.3% in March thus far,
even as the FY returns still remain quite strong at 52.9% and 56.1% respectively
(As of March 19th, 2024).
Average daily turnover (ADT) in NSE’s cash market rose for the fourth month in a
row by 3.4% MoM in February to fresh record high of Rs 1.17 lakh crore. This
translates into ADT of Rs 80,381 crore in the first 11 months of FY24, nearly 50%
higher than ADT in the previous fiscal year. Average daily turnover (premium) in the
equity options segment rose by 4.7% MoM to a fresh monthly high of Rs 79,889
crore in February, translating into ADT of Rs 61,424 crore in the first 11 months of
FY24, up 29% from ADT in FY23. In the equity futures segment, ADT rose by a
marginally higher 5.3% MoM in February, leading to an ADT of Rs 1.30 lakh crore
during the period Apr-Feb’24, up by 13.5% from that in the previous fiscal year.
• Indian debt continued to trade in a range-bound manner: The global fixed
income markets this year have been characterised by cautious optimism. This is
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reflected in the recalibration of rate cut expectations after hawkish commentary by

global central banks, particularly the US Fed, in the light of tight labour markets and
higher-than-expected inflation readings, even as the anticipation of potential rate
adjustments later in the spring remained high. As such, all major central banks
maintained the status quo on policy rates, citing the need to see a durable decline
in inflation to target levels before implementing rate cuts. This resulted in sovereign
bond yields rising across major advanced economies over the last two months,
further weighed down by stronger-than-expected economic resilience. The US 10-
year yield rose by a steep 30bps in February and another 6bps in March thus far to
4.3%, while that in the UK and Europe rose by 33bps and 24bps in February to
4.1% and 2.4% respectively.
The Indian bond markets have been trading in a tight range since the last few
months despite heightened volatility in global bond markets, as a higher-than-
expected pace of fiscal consolidation and lower-than-expected planned
borrowings by the Centre, coupled with easing inflation trajectory, made up for tight
domestic liquidity conditions and surge in global bond yields last month. Further,
foreign capital inflows into Indian debt markets have remained fairly strong over
the last few months, thereby providing downside support. Consequently, the 10-
year G-sec yield fell by a modest 7bps in February but has remained broadly steady
in March thus far at 7.1%. In fact, the domestic 10-year G-sec yield has fallen by
26bps in the last 12 months as opposed to a steep 91bps increase in the US 10-
year yield.
• FIIs resumed buying in Indian equities this month; remained strong buyers of
Indian debt: Improving sentiments in China, thanks to policy efforts by the
Government aimed at stabilizing the economy and positive developments in the
manufacturing sector and home prices, led to some shift in foreign capital from
other emerging markets to Chinese equities. India felt the brunt too, with FIIs
turning to modest buyers of Indian equities in February after being heavy sellers in
the previous month. That said, FIIs have resumed the buying spree this month, with
net inflows crossing US$4.8bn in March thus far (As of March 19th, 2024), resulting
in net FII inflows of US$25.9bn in FY24 till date. As far as Indian debt is concerned,
FIIs have remained net buyers of Indian debt for the 12 th month in a row in March,
averaging at US$2.3bn/month during Nov-Feb’24 and translating into total net
inflows of US$14.2bn in FY24 thus far (As of March 19 th, 2024)—the highest in six
years. In fact, net FII inflows of US$2.7bn in Indian debt in February was the
highest in last 79 months. DIIs have also remained strong buyers of Indian equities
for the eighth month in a row in March. Net DII inflows remained broadly steady at
nearly Rs 25k crore in February, only to strengthen further in the current month,
with net inflows tracking a cumulative figure of Rs 38k crore in March thus far. This
translates into total net DII inflows of Rs 1.88 lakh crores in FY24 till date.
• Global equities rebounded in February: The month gone by was marked by
Developed equities (MSCI
significant activity and divergent trends across global equity markets. In the U.S., a World Index) ended
positive earnings outlook and tech sector strength propelled markets higher, February with a strong gain
despite ongoing adjustments to Federal Reserve rate expectations. Japan's equity of 4.1%, while emerging
market faced headwinds from a stronger yen, while China's markets rebounded on markets outperformed with
economic stabilization efforts and policy support. Europe's markets navigated a marginally higher return
of 4.7% during the month.
through inflation concerns and banking sector uncertainties, reflecting the region's
complex economic landscape. These movements underscore the multifaceted
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influences on global equity markets, including monetary policy expectations,

economic indicators, and regional challenges.
Developed equities (MSCI World Index) registered a strong gain of 4.1% on top of
a 1.1% return in the previous month (YTD: +7.1%, as of March 19th, 2024).
Emerging equities (MSCI EM Index), on the other hand, ended the month slightly
higher at 4.6% after registering an equivalent loss in the previous month 4.7%
(YTD: +0.4%), benefiting from a significant rebound in Chinese equities (Accounting
for 25.8% of the Index as of February 2024)
US: In February 2024, U.S. equity markets demonstrated resilience and robust
performance, driven by positive earnings outlooks and investor optimism about
technological innovation and corporate earnings growth. The Dow Jones Industrial
Average, the tech-heavy Nasdaq Composite Index and S&P 500 Composite Index
generated gains of 2.2% (YTD: +3.8%, As of March 19th, 2024), 6.1% (YTD: +7.7%)
and 5.2% (YTD: +8.6%) respectively. Furthermore, sector-specific movements,
particularly in technology and energy, underscored the market's response to
evolving economic conditions and policy expectations. However, underlying these
gains were also nuanced considerations about monetary policy, as investors
recalibrated expectations around Federal Reserve interest rate movements.
On the macro front, recent economic data releases pointed to strong economic
activity. The S&P Global US Manufacturing PMI moved further deep into the
expansion zone and stood at 52.2 in February—the highest since July 2022. The
Services PMI also remained in the expansion zone at 52.3 in February, even as it
came off marginally from 52.5 in the previous month. This marked the 13th
consecutive month of expansion in the Services sector (50+ reading). The headline
inflation rate inched up marginally from 3.1% in January to 3.2% in February. This,
along with strong labour markets as visible in strong payroll additions (275K in
February vs. 200K expected), led to further recalibration of rate cut expectations.
On the policy front, the US Fed expectedly kept the policy rate unchanged at 5.25-
5.5% in the March meeting for the fifth time in a row and maintained indication of
three cuts this year, and another three next year, down from four in December. This
was despite the recent uptick in inflation figures and an upward revision in the core
PCE inflation estimate for this year. Additionally, the Fed Chair also guided for a
slower pace of quantitative tightening this year to ease financial conditions.
Europe: European equities also rallied in February, but lagged US equities,
influenced by several factors including concerns over banking sector stability,
inflation expectations and the economic outlook. The rally was led by Consumer
Discretionary, Industrials and Technology sectors, while rate-sensitive sectors
such as Real Estate and Utilities remained on the sidelines owing to deferred rate
cut expectations. Among key market indices, Germany’s DAX and France’s CAC 40
reported gains of 4.6% and 3.5% in February, and further by 1.7% and 3.5% in
March till date (As of March 19th, 2024), translating into YTD gains of 7.4% and
8.7% respectively. The UK equities, on the other hand, continued to underperform
and remained unchanged in February after falling 1.3% in the previous month
(2024TD: +0.1%), weighed down by technical recession in the light of high inflation
and interest rates.
On the macro front, high frequency indicators pointed to continued weakness in the
Eurozone economy. The Manufacturing PMI remained deep in the contraction zone
for the 20th consecutive month and stood at 46.5 in February. The Services PMI,
however, improved to 50.2 in February—the highest in seven months. This marked
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the first expansion in the services sector in the last seven months. The headline
inflation rate in the Euro area fell for the second consecutive month to 2.6% in
February, with core inflation easing for the seventh month in a row to 3.1%—the
lowest reading since March 2022. On the policy front, the ECB kept the policy rates
unchanged for the third policy in a row at 4.5% and has committed to keeping
interest rates at restrictive levels for as long as required to bring down inflation.
The UK economy remained sluggish and entered into a technical recession in the
second half of 2023. The Manufacturing PMI remained deep in the contraction zone
for the 12th month in a row at 47.5 in February. The Services PMI, on the other hand,
remained in the expansion zone for the fourth month in a row and stood at 53.8 in
February, marginally lower than 54.3 in the previous month. The headline inflation
rate remained unchanged at 4% in January, undershooting market expectations.
On the policy front, the Bank of England by a 6:3 majority voted to keep the policy
interest rate unchanged at 5.25% for the fourth time in a row, citing the need to
keep interest rates restrictive for long to bring down inflation in a sustainable
manner. Out of the other three, two voted for a 25bps hike while one voted for a
25bps cut.
Asia: After a sluggish start to the new year, Asian equities rebounded in February,
aided by strong gains registered by Chinese equities. The Chinese equity market,
after enduring a period of volatility, witnessed a recovery, helped by policy support
measures and positive signals regarding economic stabilization. The Shanghai
Composite Index surged by 8.1% in February, more than reversing the loss in the
previous month. This turnaround was supported by improvements in
manufacturing and home prices, suggesting a gradual strengthening of the
domestic economy weighed down by deferred rate cut expectations and ongoing
growth concerns in China. Among other markets, Taiwan and South Korea also
registered strong gains of 6.0% (TAIEX, YTD: +10.7%) and 5.8% (KOSPI, YTD:
+0.3%) respectively. While strong demand for semiconductors supported Korean
equities, optimism around AI technology boosted investor sentiments for Taiwan
equities. Indian markets remained on sidelines during the month, the benchmark
Nifty50 Index rising modestly, while mid- and small-caps ended the month in red.
This was primarily due to profit booking amid stretched valuations, even as strong
economic growth, robust corporate earnings and strengthened domestic
participation provided downside support.
On the macro front, the Indian economy continued to display resilience, as
reflected from high-frequency indicators. The GDP growth for Q3FY24 at 8.4%
significantly surprised on the upside. This, with upward revisions in the previous
two quarters (40bps each, 8.2% in 9MFY24), now leads to the Second Advance
Estimate (SAE) of 7.6% in FY24, up 30bps from the First Advance Estimate (FAE).
The Manufacturing PMI inched up further to 59.2 in February from 56.9 in the
previous month, marking the 32nd month of expansion in a row. The Services PMI
also remained deep in the expansion zone at 60.3 in February, indicating favourable
demand conditions. Industrial production growth came in at 3.8% in January,
marginally undershooting market expectations of 4.1%. Headline inflation
expectedly remained steady at 5.1% in February, marking the sixth month to see a
sub-6% reading. On the policy front, the RBI’s MPC expectedly kept policy rates
unchanged for the sixth time in a row, reiterating its focus to decisively bring down
inflation to its 4% target.
101/239
Market Pulse
• Commodity prices rebounded this year: Following a 12.2% drop in CY2023, the
The S&P GSCI Index rose
S&P GSCI Index—a composite commodity index, rose by 0.5% in February, and
by a modest 0.5% in
inched up by another 4.5% in March, translating into an 8.8% return on a YTD basis February and further by
(As on March 19th, 2024). The surge was primarily led by Energy commodity, with 4.5% in March thus far.
Brent crude oil rising by 2.3% in February (CY24TD: +12.5%) on account of
continued Middle East tensions and attack on red sea driving up the cost of
transporting energy products. Going forward, oil prices may remain under pressure
on the back of increased Chinese travel demand during the Lunar Holiday season,
roll-over of oil production cuts by OPEC+ till mid-2024 and increased demand for
oil on account of rate cuts this year. In February, Industrial commodities excluding
Nickel (+10.3%) and Tin (+1.3%) contracted, however, the trajectory has changed
in the current month, with most of them, barring Nickel and Iron Ore, reporting
considerable gains. Likewise, the precious commodities including Gold and Silver
that sold-off in the first two months of this year reported considerable gains thus
far in March. On the other hand, agri-commodity prices contracted irrespective of
the disruption in the Red-sea route, barring Cotton that rose by 16.4% in Feb’24.
• Rupee maintained stability despite dollar strengthening: The Indian rupee

continued to display strength and appreciated against all four major currencies in
the month gone by. In fact, it fell below the 83-mark for the first time in five months
and ended the month 0.15% higher at 82.92 against the dollar, despite a 0.5% rally
in the latter thanks to subsided rate cut expectations and strong economic
resilience. The strength in the domestic currency can be attributed towards
narrowing current account deficit (CAD), strong domestic economic fundamentals,
robust foreign capital inflows and comfortable forex reserves which stood at US$
636bn as on March 8th, 2024—just 1% shy of the all-time high level.
102/239
Market Pulse
Market performance across asset classes

Table 32: Performance across equity, fixed income, currency, and commodity markets (As on Feb 29th, 2024)
Indicator Name Feb-24 1M ago 3M ago 12M ago 1M (%) 3M (%) 6M (%) 12M (%) YTD (%)
Equity Indices
NIFTY 50 21,983 21,726 20,133 17,304 1.2 9.2 14.2 27.0 1.2
NIFTY 500 20,090 19,802 17,988 14,519 1.5 11.7 18.7 38.4 3.4
MSCI INDIA 2,604 2,541 2,306 1,910 2.5 12.9 19.5 36.4 4.7
India Volatility Index (%) 16 16 13 14 -3.0 22.7 29.1 11.1 7.4
MSCI WORLD 3,337 3,205 3,024 2,715 4.1 10.4 11.8 22.9 5.3
S&P 500 COMPOSITE 5,096 4,846 4,568 3,970 5.2 11.6 13.1 28.4 6.8
DOW JONES INDUSTRIALS 38,996 38,150 35,951 32,657 2.2 8.5 12.3 19.4 3.5
HANG SENG 16,511 15,485 17,043 19,786 6.6 -3.1 -10.2 -16.6 -3.1
FTSE 100 7,630 7,631 7,454 7,876 -0.0 2.4 2.6 -3.1 -1.3
NIKKEI 225 39,166 36,287 33,487 27,446 7.9 17.0 20.1 42.7 17.0
Fixed Income
India 10YR Govt Yield (%) 7.08 7.14 7.28 7.43 -7bps -20bps -9bps -36bps -10bps
India 5YR Govt Yield (%) 7.06 7.03 7.29 7.42 3bps -23bps -10bps -36bps -1bps
India 1YR Govt Yield (%) 7.04 7.10 7.23 7.32 -6bps -19bps 3bps -28bps -7bps
India 3Month T-Bill Yield (%) 7.07 7.23 7.18 7.13 -16bps -11bps 11bps -6bps -1bps
US 10YR Govt Yield (%) 4.24 3.95 4.34 4.00 30bps -10bps 15bps 25bps 38bps
Germany 10YR Govt Yield (%) 2.40 2.16 2.45 2.71 24bps -4bps -7bps -31bps 38bps
China 10YR Govt Yield (%) 2.36 2.44 2.69 2.91 -7bps -32bps -23bps -55bps -22bps
Japan 10YR Govt Yield (%) 0.71 0.72 0.67 0.50 -2bps 4bps 7bps 21bps 8bps
Currency
USD/INR 82.9 83.0 83.4 82.7 -0.2 -0.6 0.2 0.3 -0.4
EUR/USD 1.08 1.09 1.1 1.1 -0.4 -0.8 -0.3 2.0 -2.0
GBP/USD 1.26 1.27 1.3 1.2 -0.7 -0.1 -0.2 4.5 -0.8
USD/YEN 149.7 146.2 147.8 136.2 2.4 1.2 2.8 9.9 6.2
USD/CHF 1.1 1.2 1.2 1.1 -2.6 -1.2 0.3 6.4 -4.4
USD/CNY 7.2 7.2 7.1 6.9 0.2 0.9 -1.3 3.7 1.4
Commodities
Brent Crude Oil (US$/bbl) 83.8 81.9 80.7 84.0 2.3 3.8 -3.6 -0.3 7.8
LME Aluminium (US$/MT) 2,186.7 2,241.4 2,155.8 2,327.6 -2.4 1.4 1.0 -6.1 -6.8
LME Copper (US$/MT) 8,401.5 8,500.5 8,387.5 8,951.0 -1.2 0.2 -0.0 -6.1 -0.7
LME Lead (US$/MT) 2,057.8 2,167.0 2,092.2 2,103.0 -5.0 -1.7 -8.4 -2.2 1.1
LME Nickel (US$/MT) 17,669.5 16,013.0 16,438.0 24,591.0 10.3 7.5 -12.0 -28.2 7.9
LME Tin (US$/MT) 26,364.6 26,017.0 22,984.0 24,741.0 1.3 14.7 5.0 6.6 4.7
LME Zinc (US$/MT) 2,381.8 2,517.9 2,466.8 3,030.5 -5.4 -3.5 -1.4 -21.4 -9.8
SHC Iron Ore Spot (US$/MT) 117.5 133.0 132.5 126.0 -11.7 -11.3 0.0 -6.8 -17.5
Gold Spot Price (US$/troy ounce) 2,045.5 2,048.4 2,037.8 1,826.0 -0.1 0.4 5.3 12.0 -1.0
Silver Spot Price (US$/troy ounce) 22.7 22.9 25.3 20.9 -1.1 -10.3 -7.3 8.4 -4.7
Platinum Spot Price (US$/ounce) 887.0 924.0 937.0 951.0 -4.0 -5.3 -9.5 -6.7 -11.8
Palladium Spot Price (US$/ounce) 952.0 972.0 1,025.0 1,413.0 -2.1 -7.1 -22.3 -32.6 -14.9
Soyabeans (US$/bushel) 11.1 12.0 13.0 14.7 -7.5 -14.9 -19.8 -24.8 -12.6
Corn (c/lb) 416.8 448.0 460.5 630.0 -7.0 -9.5 -9.7 -33.9 -11.5
Wheat (US$/bushel) 6.0 6.0 5.9 6.9 -0.4 2.1 16.0 -13.4 -5.1
Cotton (US$/lb) 1.0 0.8 0.8 0.8 16.4 25.6 13.1 15.9 23.3
Raw Sugar (c/lb) 21.9 23.4 25.1 20.6 -6.2 -12.7 -11.7 6.6 7.1
Source: Refinitiv Datastream, Cogencis, NSE EPR.
103/239
Market Pulse
Table 33: Performance across global asset classes (As on February 29th, 2024)
Source: Refinitiv Datastream, NSE EPR. Note: Returns for equity indices are based on total return index values except for Shanghai SE Composite Index.
104/239
Market Pulse
Equity market performance and valuations

Table 34: Performance across NSE equity indices (As on February 29th, 2024)
February-24 PR Index Returns (%) TR Index Returns (%)
Index Name 1M 3M 1Y 3Y 5Y 1M 3M 1Y 3Y 5Y
Broad Market Indices
Nifty 50 1.2 9.2 27.0 14.8 15.3 1.3 9.4 28.5 16.2 16.7
Nifty Next 50 6.7 22.9 58.4 19.9 17.3 6.8 23.0 59.3 20.9 18.4
Nifty 100 2.2 11.5 31.9 15.4 15.5 2.3 11.7 33.3 16.7 16.8
Nifty 200 1.7 11.7 35.7 17.0 16.6 1.9 11.9 37.0 18.3 17.9
Nifty 500 1.5 11.7 38.4 18.2 17.5 1.6 11.9 39.7 19.4 18.8
Nifty Midcap 50 0.9 12.7 62.5 26.5 24.4 1.0 12.8 63.8 27.8 25.8
Nifty Midcap 100 -0.5 12.7 60.5 27.6 23.7 -0.4 12.8 61.6 28.7 24.8
Nifty Midcap 150 -0.3 11.7 56.3 26.5 24.4 -0.2 11.8 57.3 27.5 25.5
Nifty Midcap Select 1.2 11.8 59.5 21.0 20.6 1.3 12.0 60.7 22.0 21.7
Nifty Smallcap 50 -1.1 12.4 78.1 21.6 20.7 -1.0 12.6 79.4 22.7 21.8
Nifty Smallcap 100 -0.3 12.7 74.5 25.7 21.9 -0.2 12.9 75.6 26.8 23.1
Nifty Smallcap 250 -0.7 12.9 67.7 29.5 25.0 -0.6 13.1 68.8 30.6 26.2
Nifty LargeMidcap 250 0.9 11.6 43.8 20.9 20.0 1.0 11.8 45.0 22.1 21.2
Nifty MidSmallcap 400 -0.4 12.1 60.2 27.5 24.6 -0.3 12.3 61.2 28.5 25.7
Nifty500 Multicap 50:25:25 0.8 11.9 46.4 21.7 20.2 0.9 12.1 47.7 22.9 21.5
Nifty Microcap 250 -1.4 13.0 95.8 45.1 31.8 -1.3 13.1 96.8 46.1 32.9
Nifty Total Market 1.4 11.7 39.8 18.8 17.9 1.5 11.9 41.1 20.0 19.2
Thematic Indices
Nifty India Consumption 1.9 9.1 37.8 19.2 15.8 2.0 9.3 39.0 20.6 17.2
Nifty MidSmall India Consumption 1.5 7.8 51.1 21.5 22.5 1.6 7.9 51.8 22.2 23.4
Nifty Non-Cyclical Consumer 1.5 7.3 36.0 19.1 16.9 1.6 7.5 37.1 20.3 18.0
Nifty India Manufacturing 4.1 14.0 47.9 22.8 20.1 4.2 14.1 48.9 24.1 21.5
Nifty Infrastructure 2.9 22.8 61.2 25.3 22.6 3.1 23.0 62.6 26.8 24.4
Nifty Services Sector 1.1 8.2 20.5 10.5 13.2 1.2 8.3 22.1 11.7 14.5
Nifty Commodities 2.1 18.7 51.5 23.7 19.8 2.3 19.0 52.9 25.5 21.7
Nifty CPSE 6.8 36.2 100.5 46.3 23.0 7.9 37.6 105.6 51.6 27.2
Nifty PSE 5.4 34.8 108.2 41.8 23.1 6.1 35.7 112.2 46.6 27.3
Nifty Energy 5.7 32.6 79.1 27.4 21.3 6.2 33.3 81.7 29.9 24.0
Nifty MNC 3.2 10.7 32.0 16.8 13.9 3.3 10.8 33.3 18.3 15.5
Nifty India Digital 1.8 13.7 49.7 16.4 18.7 1.8 13.9 51.2 17.8 20.3
Nifty India Defence 3.2 22.0 110.9 68.0 45.0 3.5 22.3 113.0 70.3 47.3
Nifty Mobility 5.8 22.1 69.6 25.0 21.5 5.9 22.1 70.7 26.2 22.9
Nifty100 Liquid 15 2.8 14.3 43.4 18.8 11.1 2.8 14.4 44.5 20.0 12.2
Nifty Midcap Liquid 15 -0.5 9.8 53.5 24.8 23.5 -0.3 10.1 55.1 26.3 24.8
Nifty Aditya Birla Group -3.4 6.8 36.9 16.5 16.8 -3.4 6.8 37.5 17.1 17.4
Nifty Mahindra Group 6.6 10.6 35.3 24.0 16.4 6.6 10.6 36.5 26.2 18.4
Nifty Tata Group 6.2 18.8 45.3 23.2 23.2 6.2 19.2 47.1 24.6 25.1
Nifty Tata Group 25% Cap 6.1 20.5 61.4 29.4 28.6 6.1 20.7 62.7 30.7 30.1
Nifty Shariah 25 2.8 13.8 35.6 15.2 13.9 3.0 14.1 37.7 17.1 15.7
Nifty50 Shariah 2.0 12.5 28.4 13.5 15.0 2.1 12.8 30.6 15.5 17.0
Nifty500 Shariah 1.9 12.7 36.6 18.1 18.7 2.0 12.9 38.3 19.6 20.3
Nifty SME EMERGE 1.6 18.5 93.6 90.3 53.1 1.6 18.5 93.9 90.7 53.6
Nifty100 ESG 2.2 11.3 34.9 14.8 16.2 2.3 11.4 36.3 16.1 17.6
Nifty100 Enhanced ESG 2.2 11.2 34.7 14.8 16.0 2.3 11.3 36.1 16.1 17.3
Nifty100 ESG Sector Leaders 2.1 10.6 30.2 14.0 14.7 2.1 10.8 31.7 15.3 16.1
105/239
Market Pulse
February-24 PR Index Returns (%) TR Index Returns (%)

Index Name 1M 3M 1Y 3Y 5Y 1M 3M 1Y 3Y 5Y
Strategy Indices
Nifty Alpha 50 -1.2 18.9 83.9 29.4 31.9 -1.2 19.0 85.3 30.3 32.8
Nifty100 Alpha 30 7.3 24.9 71.8 22.6 20.1 7.5 25.1 73.5 23.9 21.3
Nifty Alpha Low-Volatility 30 4.8 19.1 54.5 23.8 17.9 5.1 19.4 56.5 25.4 19.4
Nifty Alpha Quality Low-Volatility 30 4.2 16.3 50.7 20.4 17.1 4.5 16.7 52.8 22.3 18.9
Nifty Alpha Quality Value Low-Volatility 30 1.9 18.0 62.9 27.1 20.8 2.2 18.4 65.4 29.6 23.1
Nifty200 Alpha 30 3.4 19.9 82.9 32.7 25.9 3.6 20.1 84.5 34.1 27.1
Nifty Dividend Opportunities 50 2.0 17.6 50.0 24.8 17.7 2.3 18.2 52.6 27.8 20.7
Nifty Growth Sectors 15 2.2 9.7 30.4 16.9 12.9 2.5 10.1 32.4 18.8 14.4
Nifty High Beta 50 0.7 20.6 78.0 26.8 19.3 0.8 20.7 79.1 28.1 20.5
Nifty Low Volatility 50 2.5 12.5 41.6 18.4 17.6 2.6 12.7 43.1 20.1 19.3
Nifty100 Low Volatility 30 3.2 13.1 39.5 17.9 16.3 3.5 13.4 41.2 20.0 18.3
Nifty100 Quality 30 1.8 8.9 33.1 16.0 14.4 2.0 9.2 34.8 17.8 16.1
Nifty Quality Low-Volatility 30 2.5 10.0 34.6 16.6 14.6 2.6 10.2 36.3 18.5 16.4
Nifty200 Quality 30 0.9 8.6 33.1 16.1 14.5 1.1 9.0 35.1 18.2 16.5
Nifty50 Equal Weight 2.2 12.0 42.2 20.7 18.4 2.4 12.2 43.8 22.5 20.1
Nifty100 Equal Weight 4.4 17.2 49.7 19.6 17.9 4.5 17.3 51.0 21.0 19.3
Nifty50 Value 20 2.6 14.5 33.7 20.2 18.2 2.9 15.0 36.0 22.8 20.9
Nifty500 Value 50 3.0 26.4 87.4 38.0 25.6 3.4 26.9 89.8 41.4 28.5
Nifty Midcap150 Quality 50 -1.0 6.3 31.3 14.4 16.3 -0.9 6.5 32.4 15.5 17.6
Nifty200 Momentum 30 3.2 19.7 67.6 28.1 23.0 3.5 19.9 68.9 29.4 24.1
Nifty Midcap150 Momentum 50 -0.4 14.5 68.0 35.5 31.3 -0.3 14.7 69.2 36.4 32.2
Sector Indices
Nifty Auto 6.2 16.3 60.3 26.1 19.6 6.2 16.3 61.5 27.3 21.0
Nifty Bank 0.3 3.7 14.5 9.8 11.5 0.3 3.7 15.5 10.6 12.0
Nifty Private Bank -2.1 -0.1 12.2 7.6 8.6 -2.1 -0.1 13.1 8.2 9.1
Nifty PSU Bank 10.5 37.5 89.4 42.6 20.2 10.5 37.5 90.8 44.2 21.0
Nifty Financial Services -0.4 1.8 13.4 8.3 12.7 -0.4 1.8 14.6 9.1 13.4
Nifty Financial Services Ex-Bank -0.5 3.9 41.5 13.2 14.9 -0.4 4.0 42.9 14.3 15.8
Nifty Financial Services 25/50 -0.3 4.5 28.9 12.1 14.8 -0.2 4.5 30.2 13.2 15.6
Nifty MidSmall Financial Services -2.1 7.7 63.1 17.4 12.4 -2.0 7.8 64.6 18.8 13.5
Nifty FMCG -1.9 1.9 20.2 18.5 13.0 -1.4 2.4 21.8 20.7 15.0
Nifty IT 3.0 15.8 27.2 15.8 19.1 3.0 16.1 29.6 18.0 21.5
Nifty MidSmall IT & Telecom 3.3 16.9 69.2 35.7 34.8 3.4 17.0 70.6 37.1 36.6
Nifty Media -4.7 -10.7 20.3 8.1 -3.6 -4.6 -10.6 20.7 8.8 -2.8
Nifty Metal -0.6 12.9 50.4 27.5 22.5 -0.6 13.0 51.0 29.8 24.7
Nifty Pharma 5.9 17.0 61.8 16.8 16.4 6.2 17.3 63.0 17.7 17.4
Nifty Realty 6.4 27.6 131.6 37.6 31.7 6.4 27.6 132.5 38.0 32.2
Nifty Consumer Durables 1.8 8.9 33.7 15.1 18.1 1.9 8.9 34.3 15.7 18.7
Nifty Oil & Gas 6.8 35.2 65.1 23.0 19.5 7.1 35.5 66.2 24.9 21.7
Nifty Healthcare Index 4.6 16.2 59.4 18.8 18.5 4.8 16.4 60.5 19.6 19.5
Nifty MidSmall Healthcare 1.3 12.4 69.0 16.4 21.8 1.4 12.5 69.9 17.2 22.7
Nifty Transportation & Logistics 5.8 19.4 66.2 26.8 22.2 5.8 19.4 67.3 27.9 23.5
Nifty Housing 1.2 12.3 41.0 18.6 18.5 1.3 12.4 42.3 19.8 19.8
Source: NSE Indices, NSE EPR.
Note: Returns for the period up to one year are absolute returns. Returns for a period greater than one year are CAGR returns.
106/239
Market Pulse
Table 35: Performance across NSE sector indices based on Price Return Index (As on February 29th, 2024)
Indicator Name Feb-24 1M ago 3M ago 12M ago 1M (%) 3M (%) 6M (%) 12M (%) YTD (%)
Sector indices
Auto 20,412 19,227 17,552 12,732 6.2 16.3 30.3 60.3 9.6
Bank 46,121 45,997 44,482 40,269 0.3 3.7 4.8 14.5 -4.5
Energy 38,838 36,748 29,295 21,682 5.7 32.6 51.0 79.1 16.0
FMCG 54,016 55,071 53,014 44,940 -1.9 1.9 5.7 20.2 -5.2
IT 37,720 36,638 32,582 29,664 3.0 15.8 21.0 27.2 6.2
Infrastructure 8,086 7,860 6,586 5,017 2.9 22.8 36.0 61.2 10.7
Media 2,050 2,151 2,297 1,705 -4.7 -10.7 -10.6 20.2 -14.2
Metals 7,922 7,973 7,017 5,269 -0.6 12.9 19.0 50.3 -0.7
Pharma 19,003 17,939 16,239 11,747 5.9 17.0 25.9 61.8 12.9
Real Estate 911 856 714 393 6.3 27.6 63.1 131.6 16.3
Thematic Indices
CNX PSE 9,139 8,670 6,779 4,390 5.4 34.8 67.5 108.2 16.3
CNX Consumption 9,806 9,628 8,987 7,116 1.9 9.1 18.2 37.8 2.4
CNX Services 27,684 27,386 25,596 22,973 1.1 8.2 12.0 20.5 -0.0
Source: Cogencis, NSE EPR.
Figure 138: NIFTY sector performance in February 2024

Rebased to 0 on February 1st, 2024
107/239
Market Pulse
Figure 139: NIFTY sector performance in Jan-Feb 2024

Rebased to 0 on January 1st, 2024
108/239
Market Pulse
Nifty 50 performance attribution analysis

Domestic markets remained on sidelines in February: Indian equities edged marginally
higher in February, and touched all-time high levels, aided by a pro-growth Interim
budget, strong economic growth and favourable global cues. That said, it underperformed
the global emerging as well as developed market counterparts during the month, as
stretched valuations resulted in some profit booking, particularly in mid- and small-cap
companies. While FIIs were modest buyers of Indian equities in February after selling
heavily in the previous month, they resumed their buying spree in the current month, with
net inflows of US$4.9bn in March thus far (As of March 19 th, 2024), translating into total
net inflows of US$25.9bn in the fiscal till date (Source: Refinitiv Datastream). Domestic
participation, on the other hand, has remained strong, with net DII inflows remaining
broadly steady at nearly Rs 25k crore in February, only to strengthen further in the current
month, with net inflows tracking a cumulative figure of Rs 38k crore in March thus far.
This translates into total net DII inflows of Rs 1.88 lakh crores in FY24 till date.
The Nifty 50 Index ended the month of February with a modest gain of 1.2%, touching
fresh all-time high of 22,217 during the month, only to correct marginally this month,
translating into a 25.7% return in FY24 thus far (As of March 19th, 2024). The small and
mid-cap stocks, however, have seen some correction over the last month or so, thanks to
stretched valuations and the resultant profit booking. The Nifty Midcap 100 and Nifty
Smallcap 250 Indices fell by 0.5% and 0.7% in February and further by 5% and 8.3% in
March thus far, even as the FYTD returns still remain quite strong at 52.9% and 56.1%
respectively (As of March 19th, 2024). Within the Nifty 50 companies, strong gains in
Consumer Discretionary, Energy and IT companies were partly offset by sell-off in
Consumer Staples, Materials and Financials in the month gone by. In the last 12 months,
Financials, Energy, Consumer Discretionary and IT together accounted for ~66.5% of the
gain in the Nifty 50 Index in the last 12 months.
Figure 140: Sector-wise contribution to Nifty 50 price return in February 2024
Source: Refinitiv Datastream, CMIE Prowess, NSE Indices, NSE EPR.
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Market Pulse
Figure 141: Sector-wise contribution to absolute Nifty 50 Index change (points) in February 2024
Figure 142: Sector-wise contribution to Nifty 50 price return in 2024 till date (Jan-Feb’24)
Figure 143: Sector-wise contribution to Nifty 50 Index change (points) in 2024 till date (Jan-Feb’24)
110/239
Market Pulse
Figure 144: Sector-wise contribution to Nifty 50 price return in last one year (Mar’23-Feb’24)
Figure 145: Sector-wise contribution to Nifty 50 Index change (points) in last one year (Mar’23-Feb’24)
Figure 146: Nifty 50 Index monthly movement across sectors over last 12 months
Index points NIFTY 50 index movement across sectors
Comm. Cons. Disc Cons. Stap Energy Financials Health
2,000 Industrials IT Materials Utilities Change
1,500
1,000
500
-500
-1,000
Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
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Figure 147: Nifty 50 Index monthly return across sectors over last 12 months
NIFTY 50 index (%) returns across sectors
Comm. Cons. Disc Cons. Stap Energy Financials Health
10% Industrials IT Materials Utilities Change
8%
6%
4%
2%
0%
-2%
-4%
-6%
Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Figure 148: Sector-wise Nifty50 Index attribution (2004-)

Points Sector-wise Nifty50 Index attribution
25,000 Communication Services Consumer Discretionary Consumer Staples Energy

Materials Utilities Real Estate
20,000
15,000
10,000
5,000
0
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Aug-04
Aug-05
Aug-06
Aug-07
Aug-08
Aug-09
Aug-10
Aug-11
Aug-12
Aug-13
Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Aug-19
Aug-20
Aug-21
Aug-22
Aug-23
Source: Refinitiv Datastream, CMIE Prowess, NSE EPR.
Relative outperformance of Consumer Discretionary, Industrials, and Utilities during the

last 12 months ending February 29th, 2024, has led to the respective sector’s weight in
the Nifty50 Index rising by 183bps, 177bps, and 95bps to 8.7%, 6.2%, and 3.0%
respectively. In fact, while the weight of the Industrial sector in the Nifty 50 Index rose to
a 115-month high level in February, that of Consumer Discretionary and Utilities rose to
a 66-month and 64-month high levels. This was at the expense of a steep 491bps drop in
the weight of Financials to an 83-month low of 32.5%, followed by a 103 bps fall in the
weight of Consumer Staples sector to a 21-month low of 8.3%.
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Figure 149: Nifty 50 sector weightage (February 2023) Figure 150: Nifty 50 sector weightage (February 2024)
February 2023 February 2024

Comm., 3.0
Utilities, 2.1 Comm., 2.4 Utilities, 3.0
Materials, 6.7 Cons. Disc, 6.9 Materials, 6.4 Cons. Disc, 8.7
Cons. Stap,
9.4 IT, 14.5 Cons. Stap, 8.3
IT, 14.7
Industrials, Industrials, 6.2

Energy, 12.3 Energy, 13.0
4.4
Healthcare,
3.7 Healthcare, 4.5
Financials,
37.4 Financials, 32.5
Figure 151: Sector weights in the Nifty 50 Index (2003-)

% Sector weights in Nifty50 Index
Materials Utilities Real Estate
100
90
80
70
60
50
40
30
20
10
0
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Aug-04
Aug-05
Aug-06
Aug-07
Aug-08
Aug-09
Aug-10
Aug-11
Aug-12
Aug-13
Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Aug-19
Aug-20
Aug-21
Aug-22
Aug-23
Table 36: Top five Nifty 50 Index gainers in February 2024

Index % return Index change
Security name Security symbol Return (%)
contribution (%) contribution (points)
Tata Consultancy Services Ltd. TCS 7.3 0.3 65
Mahindra & Mahindra Ltd. M&M 17.0 0.3 57
Reliance Industries Ltd. RELIANCE 2.4 0.2 53
Sun Pharmaceutical Inds. Ltd. SUNPHARMA 11.2 0.2 39
I C I C I Bank Ltd. ICICIBANK 2.3 0.2 39
Total 1.2 253
Nifty 50 Index NIFTY 50 1.2 1.2 257
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Table 37: Top five Nifty 50 Index losers in February 2024

Index % return Index change
Security name Security symbol Return (%)
contribution (%) contribution (points)
H D F C Bank Ltd. HDFCBANK -4.0 -0.47 -102
I T C Ltd. ITC -8.0 -0.34 -73
Kotak Mahindra Bank Ltd. KOTAKBANK -7.4 -0.22 -48
Bharti Airtel Ltd. BHARTIARTL -4.0 -0.12 -27
Hindalco Industries Ltd. HINDALCO -13.0 -0.11 -24
Total -1.3 -274
Nifty 50 Index NIFTY 50 1.2 1.2 257
Earnings and valuation analysis
Consensus earnings CAGR for the period 2023-25 pegged at 13.8%: Notwithstanding
a resilient Q3FY24 corporate earnings performance, consensus earnings estimates have
seen downgrades for this and the next year, reflecting the impact of a delayed rural
recovery, rising cost of funds and macroeconomic headwinds in the US and Europe. The
Nifty50 earnings estimates (Source: Refinitiv Datastream) for 2024/2025 were
downgraded further by 1.5%/0.5% in February, translating into total downgrades of
3.2%/1.2% in the last six months ending February 29th, 2024. This translates into an
expected earnings growth of 13.7% and 13.9% for 2024 and 2025 as on February 29th,
2024, vs. 13.0% and 12.6% as of December-end, respectively, resulting in a two-year
CAGR (2023-25) of 13.8% vs. 12.8% as of December-end.
Our analysis of earnings estimates of top 200 companies by market cap 26 paints a 25F
contrasting picture. The aggregate consensus earnings estimate for this universe for FY24
has been upgraded by 2.1% since December-end, primarily led by upgrades in Energy.
Excluding Energy, the aggregate profit estimate for FY24, however, was cut by a modest
0.6%, led by downgrades in Materials, Financials and Consumer Staples. While Material
companies saw their realisations falling in the light of easing global commodity prices,
Financials are expected to feel the brunt of rising cost of funds, and delayed rural recovery
has kept the topline of Consumer Staples sector muted. Earnings estimate for FY25 also
saw a modest 1.6% increase since December-end, primarily led by upgrades in Energy
and Financials, partly offset by downgrades in Materials and Consumer Staples.
Sustained margin tailwinds, strong urban demand and robust credit growth provided a
boost to corporate profitability in the quarter gone by, even as the top-line growth has
remained in single digits, weighed down by a slower recovery in rural demand and
headwinds from weak global demand. That said, margin tailwinds are expected to fade
from next quarter onwards amid an unfavourable base, thereby necessitating a durable
recovery in domestic demand.
26
The sample set consists of top 200 companies by one-year average market cap ending June 30th, 2023 covered by at least five or more analysts during the previous
12 months using IBES estimates from Refinitiv Datastream.
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Table 38: Earnings growth and forward-looking multiples for Nifty 50 Index
As on Change (%/bps)
Metric Periods
29-Feb-24 1M 3M 6M YTD 1Y
12-month forward 1049.9 -0.7% 0.6% 3.1% -0.7% 11.2%
2023 932.5 -2.5% -2.9% -3.2% -3.2% -2.5%
% YoY 17.1% -302bps -258bps -247bps -275bps -114bps
EPS (Rs) 2024 1060.4 -1.5% -2.2% -3.2% -2.5% -2.4%
% YoY 13.7% 116bps 81bps 1bps 73bps 10bps
2025 1208.3 -0.5% -0.9% -1.2% -1.4%
% YoY 13.9% 110bps 158bps 232bps 135bps
Price to 12-month forward 21.1 5.2% 10.9% 11.3% 4.2% 12.0%

earnings 2024 20.9 6.1% 14.2% 18.6% 6.3% 27.6%
(P/E) (x) 2025 18.4 5.1% 12.6% 16.2% 5.0%
Price to Book 12-month forward 3.4 4.9% 10.6% 12.5% 2.5% 15.6%
value 2024 3.4 5.8% 13.6% 19.0% 4.7% 28.0%
(P/B) (x) 2025 3.0 5.7% 13.5% 19.0% 6.4%
Source: Refinitiv Datastream, NSE EPR. NTM = Next Twelve Months.
Figure 152: Sector-wise revision in FY24 earnings estimates for top 200 companies since December 2023
% Sector-wise revision in FY24 earnings estimates since December 2023
140.0
Share in aggregate profit upgrades since Dec-end
119.4
120.0 Profit change since Dec-end
100.0
80.0
60.0
40.0
20.0 10.3
4.8 1.8 2.1 0.8 1.9 1.5 2.1
0.4 0.5 0.2 0.3
0.0
(0.1)(0.0) (0.1)(0.0) (0.6)
(4.8)(2.0) (3.8)
20.0 (9.6)
(14.3)
40.0
Energy Utilities Industrials Health Comm. Real EstateCons. Disc. IT Cons. Financials Materials Total
Care Svcs. Staples
Note: Based on IBES earnings estimates of top 200 companies by one-year average market cap ending June 30th, 2023, covered by at least five analysts at any given
point of time over the last one year. Data is as on March 20th, 2024.
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Figure 153: Sector-wise revision in FY25 earnings estimates for top 200 companies since December 2023
% Sector-wise revision in FY25 earnings estimates since December 2023
Share in aggregate profit upgrade since Dec-end
100.0
Profit change since Dec-end
81.7
80.0
60.0
40.0
21.0
20.0
6.1 5.1 3.3 1.9
0.9 1.4 3.2 0.9 2.0 0.5 1.6 1.9 1.4 0.7 1.6
0.4 0.1
0.0
(1.7) (3.1)
(9.2) (10.5)
20.0
Energy Financials Utilities Comm. Industrials Cons. Disc. Real Health IT Materials Cons. Total
Svcs. Estate Care Staples
point of time over the last one year. Data is as on March 20th, 2024.
Figure 154: Sector-wise share in earnings

%
Sector-wise share in earnings
40.0
FY22 FY23 FY24E FY25E FY26E
35.7
35.0 33.3
30.0
26.9
25.0
20.7
20.0
15.0
10.0 7.5 8.1

5.7 6.1 5.4 6.1 5.7 5.6 5.0 5.0
4.9 5.0
5.0 2.8 3.1 3.1
2.0
1.1 1.5
0.0
Financials Energy Materials IT Cons. Disc. Industrials Utilities Cons. Health Care Real Estate Comm.
Staples Svcs.
point of time over the last one year. Data is as of March 20th, 2024.
Valuations improved further in February: Following a range-bound movement in

January, a modest rally in the benchmark Nifty 50 Index resulted in forward valuations
inching up marginally last month. The Nifty50 Index currently trades at a 12-month
forward P/E of 21.1x, 32% higher than long-term average multiple (15.9x) and 8.7%
higher than the one standard deviation above the long-term multiple.
Valuations have improved on price-to-book (P/B) basis as well over the last few months,
with Nifty50 currently trading at a 12-month forward P/B of 3.4x—the highest since
November 2021. This implies a premium of ~40% to the average P/B of 2.4x over the last
15-year period.
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…Accompanied with a decline in valuation premium to EM equities: Indian equities

have perennially traded at a premium to EM equities, thanks to India’s strong economic
fundamentals. That said, the recent underperformance of Indian equities vis-à-vis its
emerging market peers has resulted in India’s valuation gap to MSCI EM falling sharply
last month from a 13-month high of 91% last month to 82% currently. On 12-month
forward P/B, MSCI India is trading at a much higher premium of 133% vs. last 15-year
average premium of 79%, even as it has fallen sharply from 188% in the previous month.
Figure 155: Nifty 50 NTM P/E trend for last 15 years Figure 156: Nifty 50 NTM P/B trend for last 15 years
Figure 157: Nifty 50 NTM P/E (Last three-year trend) Figure 158: Nifty 50 NTM P/B (Last three-year trend)
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Figure 159: Five-year trend of Nifty 50 values at different 12-month forward P/E bands
Figure 160: NTM P/E of MSCI India vs. MSCI EM (15-year Figure 161: NTM P/B of MSCI India vs. MSCI EM (15-
trend) year trend)
MSCI India currently trades at a premium of 82% to MSCI On 12m forward P/B as well, India’s valuation premium
EM on 12-month forward P/E, down from the recent peak to MSCI EM is much higher at 133%.
of 94% in January 2024.
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Figure 162: NTM P/E of MSCI India vs. MSCI EM (Last Figure 163: NTM P/B of MSCI India vs. MSCI EM (Last
three-year trend) three-year trend)
Figure 164: Nifty 50 forward earnings yield* vs. 10-year G-sec yield
Source: Refinitiv Datastream, NSE EPR. * Forward earnings yield for Nifty 50 is calculated as (1/12-month forward PE).
Valuations corrected for several sectors in February: We have also looked at long-term
trends of 12-month forward P/E and P/B multiples across MSCI India sector indices. The
month gone by saw a divergent movement in forward valuations across sectors.
Financials continued to derate, with the 12-month forward P/E falling further closer to
one standard deviation below the long-term average mean. In fact, barring Financials, all
other sectors continued to trade well above their long-term average multiples despite
correction for some of them including Consumer Staples, Healthcare, Information
Technology and Materials.
119/239
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Figure 165: 12-month forward P/E for MSCI India sector indices (Three-year trend)
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Figure 166: 12-month forward P/E for MSCI India sector indices (Long-term trend)
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Figure 167: 12-month forward P/B for MSCI India sector indices (Three-year trend)
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Figure 168: 12-month forward P/B for MSCI India sector indices (Long-term trend)
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126/239
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Market correlation analysis
In this section, we analyze how different sectoral Nifty indices move in relation to each
other and the benchmark Nifty 50 Index across different time periods. A similar study has
been done for major global indices as well where we compare the movement of the
benchmark Nifty 50 Index with other major developed and emerging market indices.
Sector indices showed a mixed performance last month. The Nifty PSU Bank index
outperformed other sectoral indices by delivering a monthly return of ~10.5 %, The rise
in PSU Bank stocks can be attributed to the improvement in asset quality and lower
valuations compared to private peers. This has been followed by a rise in the oil and gas
index at 6.8 % and Nifty Realty at 6.3%. Nifty Auto showed the worst performance,
declining by 4.7% due to weak demand outlook going forward.
Figure 169: Correlation of sectoral Nifty indices in February 2024
Source: NSE EPR.

Note: Correlation cells marked with asterik (*) signify statistically insignificant values.
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Figure 170: Correlation of sectoral Nifty indices in January 2024
Source: NSE EPR.

Note: Correlation cells marked with asterik (*) signify statistically insignificant values.
128/239
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Figure 171: Correlation of sectoral Nifty indices in 2024 till date (Jan- Feb 2024)
Across indices, NIFTY

Healthcare and NIFTY
PSU had the strongest
positive correlation while
NIFTY FMCG and
Consumer Durables had
the strongest negative
correlation.
Source: NSE EPR.

Note: 1. Correlation cells marked with asterik (*) signify statistically insignificant values. 2. Sectoral Index price chart is rebased to 100 on January 1 st, 2023.
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All the major global indices ended up in green with SSE Composite rising the most by 8.1
% followed by Nikkei at 7.9%. The divergence between indices was the most pronounced
between MOEX Russia and Nifty 50 at -0.60 and is statistically significant. The correlation
between The MSCI World and MSCI EM Indices turned positive at 0.87 in February from
-0.23 in January. The MOEX Russia Index had a negative relationship with most of the
indices.
Figure 172: Correlation of major global indices in January 2024

Note: 1. Correlation cells marked with asterik (*) signify statistically insignificant values.
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Figure 173: Correlation of major global indices in February 2023

Note: 1. Correlation cells marked with asterik (*) signify statistically insignificant values.
131/239
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Figure 174: Correlation of major global indices in 2024 till date (Jan-Feb 2024)
Nikkei 225 Index

outperformed with the
highest return since 2024
with Hang Sang recovering
in February.
MSCI EM has shown also

recovered from its lows in
early January on the back
of rise in Hang Sang which
showed the strongest
positive correlation with
index at 0.87.
132/239
Market Pulse
Fixed income market performance

Table 39: Performance of key Nifty debt indices (As of February 29th, 2024)
Absolute returns (%) CAGR returns (%)
Category Index name
1M 3M 6M 1Y YTD 2Y 3Y 5Y
Nifty 5yr Benchmark G-sec Index 0.5 2.5 3.9 8.6 9.2 5.5 5.5 7.1
G-sec Nifty 10 yr Benchmark G-Sec 1.0 3.2 3.9 9.7 10.1 5.8 4.4 6.1
Nifty Composite G-sec Index 1.1 3.5 4.4 9.7 10.3 6.2 5.7 7.3
SDL NIFTY 10 Year SDL Index 1.9 3.9 3.8 9.3 9.9 6.1 6.6 8.6
NIFTY AAA Ultra Short Duration Bond Index 0.6 1.9 3.7 7.8 8.9 6.7 5.8 6.1
NIFTY AAA Short Duration Bond Index 0.6 2.0 3.3 7.5 8.3 5.2 5.2 7.0
NIFTY AAA Low Duration Bond Index 0.6 1.7 3.3 7.4 8.5 6.0 5.3 6.2
AAA credit
NIFTY AAA Medium Duration Bond Index 0.8 2.1 3.5 7.6 7.9 4.5 5.2 7.5
NIFTY AAA Medium to Long Duration Bond Index 1.2 2.6 3.6 8.0 8.3 4.8 5.4 7.9
NIFTY AAA Long duration Bond Index 2.0 3.2 3.8 8.9 9.4 5.0 5.6 8.1
NIFTY Liquid Index 0.6 1.8 3.6 7.3 8.5 6.4 5.5 5.3
NIFTY Money Market Index 0.6 1.9 3.6 7.6 8.7 6.5 5.5 5.6
NIFTY Ultra Short Duration Debt Index 0.6 1.9 3.7 7.8 9.0 6.8 5.9 6.0
NIFTY Short Duration Debt Index 0.6 2.0 3.5 7.7 8.5 5.7 5.5 6.8
NIFTY Low Duration Debt Index 0.7 1.8 3.5 7.7 8.9 6.4 5.6 6.2
Composite
NIFTY Medium Duration Debt Index 0.7 2.1 3.6 8.0 8.6 5.2 5.6 7.4
NIFTY Medium to Long Duration Debt Index 1.1 2.8 3.8 8.6 9.1 5.6 5.9 7.8
NIFTY Long Duration Debt Index 1.7 4.1 4.7 9.9 10.5 6.4 6.3 8.3
NIFTY Composite Debt Index 1.0 2.8 3.9 8.6 9.3 5.8 5.9 7.7
NIFTY Corporate Bond Index 0.7 2.0 3.5 7.9 8.6 5.6 5.8 7.4
Source: NSE Indices, NSE EPR.
Global debt remained under pressure in February…: The global fixed income markets
this year have been characterised by cautious optimism. This is reflected in the
recalibration of rate cut expectations after hawkish commentary by global central banks,
particularly the US Fed, in the light of tight labour markets and higher-than-expected
inflation readings, even as the anticipation of potential rate adjustments later in the spring
remained high. As such, all major central banks maintained status quo on policy rates,
citing the need to see a durable decline in inflation to target levels before implementing
rate cuts. This resulted in sovereign bond yields rising across major advanced economies
over the last two months, further weighed down by stronger-than-expected economic
resilience. The US 10-year yield rose by a steep 30bps in February and another 6bps in
March thus far to 4.3%, while that in the UK and Europe rose by 33bps and 24bps in
February to 4.1% and 2.4% respectively.
…While domestic bond markets traded in a narrow band: The Indian bond markets
have been trading in a tight range since the last few months despite heightened volatility
in global bond markets, as a higher-than-expected pace of fiscal consolidation and lower-
than-expected planned borrowings by the Centre, coupled with easing inflation
trajectory, made up for tight domestic liquidity conditions and surge in global bond yields
last month. Further, foreign capital inflows into Indian debt markets have remained fairly
strong over the last few months, thereby providing downside support. FIIs have remained
net buyers of Indian debt for the 12th month in a row in March, averaging at
US$2.3bn/month during Nov-Feb’24 and translating into total net inflows of US$14.2bn
in FY24 thus far (As of March 19th, 2024)—the highest in six years. In fact, net FII inflows
of US$2.7bn in Indian debt in February was the highest in last 79 months. Consequently,
the 10-year G-sec yield fell by a modest 7bps in February but has remained broadly
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Market Pulse
steady in March thus far at 7.1%. In fact, the domestic 10-year G-sec yield has fallen by
26bps in the last 12 months as opposed to a steep 91bps increase in the US 10-year yield.
Figure 175: India 10Y G-sec yield—long-term trend Figure 176: India 10Y G-sec yield—last one-year trend
% %
India 10-year benchmark g-sec yield-long-term trend India 10-year benchmark g-sec yield movement over
10 7.8 last 12 months
9 7.6
8
7.4
7
7.2
6
5 7.0
4 6.8
Mar-04
Mar-05
Mar-06
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
6.6
Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24
Figure 177: India sovereign yield curve

% India sovereign yield curve
31-Mar-22 31-Mar-23 31-Dec-23 19-Mar-24
8.40
7.4
7.60
7.3
7.0
6.80
6.9
6.00
5.20
4.40
3.83
3.60
2.80
2.00
3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 11Y 12Y 13Y 14Y 15Y 19Y 24Y 30Y
Source: Cogencis, NSE EPR.
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Figure 178: Change in sovereign yields across the curve

bps Change in yields across the curve so far in FY24
5 3 3 3 3 Feb-24 FYTD*
2
-5 -2-2 -2 -2 -3
-6 -7 -7 -7
-10 -7
-8 -8 -8 -9
-10 -10 -9
-12 -12 -11
-15 -12
-15 -16
-16 -16
-20 -19
-20 -19
-22 -21 -21
-25 -22 -22
-23
-25
-30
3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 11Y 12Y 13Y 14Y 15Y 19Y 24Y 30Y
Source: Cogencis, NSE EPR. * As on March 19th, 2024.
Figure 179: India sovereign bonds term premia

bps
Sovereign bond spreads
10Y-2Y 10Y-3Y
300
250
200
150
100
50
-50
-100
-150
Jan-10 Feb-11 Mar-12 Apr-13 May-14 Jun-15 Jul-16 Aug-17 Sep-18 Nov-19 Dec-20 Jan-22 Feb-23 Mar-24
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Figure 180: Inflation, yields and spreads in India vs. US
SDL spreads fell sharply in February: Higher-than-indicated borrowings led to a sharp

surge in spreads between SDLs and their G-sec counterparts in the last quarter of 2023.
Total borrowings by states in the last quarter at Rs 2.46 lakh crore was nearly 1.7% higher
than the indicated amount of Rs 2.42 lakh crore. Consequently, spreads between 10-year
SDL and corresponding G-sec yields rose from ~40bps in September-end to 60bps by
December-end. The trend, however, has reversed in the first quarter of 2024. Total
market borrowings by states at Rs 1.06 lakh crore in February was nearly 30% lower than
the indicative amount after a shortfall of 20% of the indicative amount in the previous
month. In fact, total borrowings in the first quarter thus far (As of March 12th, 2024) at Rs
2.55 lakh crore is 22% lower than the amount indicated at the beginning of the quarter.
This has resulted in the 10-year SDL spread to its G-sec counterpart falling sharply from
the peak of 68bps in early January to 47bps by the end of February.
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Figure 181: Spreads between 10-year SDL and G-sec yields

% bps
10-year SDL vs. G-sec yield
9.0 10-year SDL yield 10-year G-sec yield Spread 120
8.5
100
8.0
80
7.5
7.0 60
6.5
40
6.0
20
5.5
5.0 0
May-19
Sep-19
May-20
Sep-20
May-21
Sep-21
Jan-19
Jan-20
Jan-21
Jan-22
Oct-22
Feb-23
Oct-23
Feb-24
Jun-22
Jun-23
Source: NSE Data and Analytics (NDAL), Refinitiv Datastream, CCIL, NSE EPR.
Corporate bond market performance

The yield curve inversion in corporate bonds further strengthened last month, primarily
due to a relatively higher drop in long-end yields, while the short-end has remained
broadly steady. This movement at the short-end has been starker as compared to similar
tenor G-secs, weighed down by tight liquidity conditions, thereby resulting in widening of
spreads between the two over the last few months. For instance, the average spread
between 1Y AAA-rated NBFCs and the G-sec of corresponding tenor has been steadily
rising, averaging at 124bps in February vs. 111bps in January, ~100bps in December,
94bps in November, and 70bps in October. A similar trend was observed in other
categories and lower rated bonds as well. Total corporate bond issuances in the current
fiscal until February end through public as well as private placement routes have touched
Rs 7.5 lakh crore, nearly 12.4% higher than the amount issued during the same period
last year.
Figure 182: Spreads for one-year AAA-rated corporate bonds across segments
bps Spreads for 1-year corporate bonds across segments
1Y Corp (-) 1Y G-sec 1Y NBFC (-) 1Y G-sec 1Y PSU (-) 1Y G-sec 1Y HFC (-) 1Y G-sec
450
400
350
300
250
200
150
100
50
0
-50
-100
Jan-19 Jul-19 Jan-20 Jun-20 Dec-20 May-21 Nov-21 Apr-22 Oct-22 Mar-23 Sep-23 Feb-24
Source: NSE Data and Analytics (NDAL), Refinitiv Datastream, NSE EPR.
137/239
Market Pulse
Figure 183: Spreads for three-year AAA-rated corporate bonds across segments
360
320
280
240
200
160
120
80
40
0
-40
-80
Figure 184: Spreads for five-year AAA-rated corporate bonds across segments
360
320
280
240
200
160
120
80
40
0
-40
-80
138/239
Market Pulse
Figure 185: Spreads for 10-year AAA-rated corporate bonds across segments
320
280
240
200
160
120
80
40
0
Figure 186: AAA-rated corporate bond yield curve Figure 187: AA+ rated corporate bond yield curve
% AAA PSU yield curve % AA+ PSU yield curve
31-Mar-22 31-Mar-23 29-Feb-24 31-Mar-22 31-Mar-23 29-Feb-24
8.5 8.5
8.0
7.5
7.5
6.5 7.0
6.5
5.5
6.0
5.5
4.5
5.0
3.5 4.5
1Y 2Y 3Y 5Y 10Y 1Y 2Y 3Y 5Y 10Y
Source: NSE Data and Analytics (NDAL).
Figure 188: Change in AAA corporate bond and G-sec Figure 189: Change in AA+ corporate bond and G-sec
yields in FYTD (Apr’23-Feb’24) bond yields in FYTD (Apr’23-Feb’24)
bps Change in AAA vs. G-sec yields in Apr-Feb 2024 bps Change in AA+ vs. G-sec yields in Apr-Feb 2024
AAA PSUs AAA NBFCs G-Secs AA+ PSUs AA+ NBFCs G-secs
30 20
23 14
11 12
20
12 13 14 10
8 1 1
10
0
0 -2
-1 -10 -5
-2 -8
-10 -10 -9
-7 -7 -11
-10 -9 -11 -11
-20
-20 -16 -19
-21 -20
-24 -24
-30 -30
1Y 2Y 3Y 5Y 10Y 1Y 2Y 3Y 5Y 10Y
139/239
Market Pulse
Figure 190: Corporate bond term premia between 10-year and 1-year yields
bps Corporate bond term premia
400 AAA-PSU AAA-HFCs AAA-NBFCs AAA-Corp
350
300
250
200
150
100
50
0
-50
-100
Jul-21
Jul-22
Mar-21
Mar-22
Mar-23
Nov-21
Nov-22
Oct-23
Jan-19
Jun-23
Feb-24
Apr-19
Aug-19
Dec-19
Apr-20
Aug-20
Dec-20
140/239
Market Pulse
Commodity market performance

Commodity prices rebounded this year: Following a 12.2% drop in CY2023, the S&P
GSCI Index—a composite commodity index, rose by 0.5% in February, and inched up by
another 4.5% in March, translating into an 8.8% return on a YTD basis (As on March 19th,
2024). The surge was primarily led by Energy commodity, with Brent crude oil rising by
2.3% in February (CY24TD: +12.5%) on account of continued Middle East tensions and
attack on red sea driving up the cost of transporting energy products. Going forward, oil
prices may remain under pressure on the back of increased Chinese travel demand during
the Lunar Holiday season, roll-over of oil production cuts by OPEC+ till mid-2024 and
increased demand for oil on account of rate cuts this year. In February, Industrial
commodities excluding Nickel (+10.3%) and Tin (+1.3%) contracted, however, the
trajectory has changed in the current month, with most of them, barring Nickel and Iron
Ore, reporting considerable gains. Likewise, the precious commodities including Gold and
Silver that sold-off in the first two months of this year reported considerable gains thus
far in March. On the other hand, agri-commodity prices contracted irrespective of the
disruption in the Red-sea route, barring Cotton that rose by 16.4% in Feb’24.
Figure 191: Movement in key commodity indices

(As on March 19th, 2024)
141/239
Market Pulse
Figure 192: Movement in key commodity indices since 2020

Rebased to 100 on March 31st, 2020 (As on March 19th, 2024)
142/239
Market Pulse
Figure 193: Returns of key hard commodities in 2022, 2023 and 2024 till date
143/239
Market Pulse
Figure 194: Returns of key agricultural commodities in 2022, 2023 and 2024 till date
144/239
Market Pulse
Figure 195: Returns of key energy commodities in 2022, 2023 and 2024 till date
145/239
Market Pulse
Table 40: Annual performance across commodities

146/239
Market Pulse
Currency market performance

Indian rupee remained resilient amid dollar appreciation: The Indian rupee continued
to display strength and appreciated against all four major currencies in the month gone
by. In fact, it fell below the 83-mark for the first time in five months and ended the month
0.15% higher at 82.92 against the dollar, despite a 0.5% rally in the latter thanks to
subsided rate cut expectations and strong economic resilience. The strength in the
domestic currency can be attributed towards narrowing current account deficit (CAD),
strong domestic economic fundamentals, robust foreign capital inflows and comfortable
forex reserves which stood at US$ 636bn as on March 8th, 2024—just 1% shy of the all-
time high level. During the month gone by, all major developed market currencies
depreciated against the dollar led by the Swiss Franc that witnessed an erosion of 2.6%,
followed by the Japanese Yen with a depreciation of 2.4%, Pound Sterling of about 0.7%
and Euro of about 0.4%.
Figure 196: Movement in INR vs. major DM currencies in 2023 and 2024
(Rebased to 100 on December 30th, 2022)
INR EURO GBP JPY CAD
110
105
100
95
90
85
80
Dec-22 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24
Source: Cogencis, NSE EPR. Data is updated till March 18th, 2024.
Figure 197: Movement in INR vs. major EM currencies in 2023 and 2024
(Rebased to 100 on December 30tht, 2022)
INR Rand Real Lira Rouble Rupiah
120
110
100
90
80
70
60
50
Dec-22 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24
Source: Cogencis, NSE EPR. Data is updated till March 18th, 2024.
147/239
Market Pulse
The Indian rupee continued to exhibit lowest and declining annualized volatility among
major developed and emerging market currencies. The INR’s annualized volatility stood
at 2.2% as of the end of February 2024, down from 2.4% in the previous month,
compared to the Turkish Lira at 11.5%, Brazilian Real at 10.7%, Japanese Yen at 9.1%,
Pound Sterling at 7.5%, Euro at 6.9% and Chinese Yuan at 4.0%.
Figure 198: Annualized volatility of INR vs other developed and EM currencies
Figure 199: Change in INR vs other major currencies (As on February 29th, 2024)
148/239
Market Pulse
Figure 200: RBI forex reserves and USDINR
149/239
Market Pulse
Rupee overvaluation in real terms gained strength in February: Except for a brief
period of undervaluation in the early months of last year, the Indian rupee, as measured
by the 40-currency real effective exchange rate (REER), has remained in the overvaluation
zone over the past five years. After reaching its peak in July '23 at 105.5, there was a
gradual reduction in the level of overvaluation in the subsequent months, except for Oct-
2023. After remaining steady in January, the extent of rupee overvaluation in real terms
inched up in February, with a REER of 104.7 As of February 2024, implying a 4.7%
overvaluation against a basket of 40 currencies.
Figure 201: Real and nominal effective exchange rates of INR
Source: Refinitiv Datastream, NSE EPR
150/239
Market Pulse
The forward premium of USDINR stayed within a tight range in February 2024: The
forward premium of the INR experienced a notable decline since the onset of interest rate
hiking cycle in both the US and India. Reaching its minimum in November 2023, the forward
premium for one-month, three-month, and six-month periods stabilized between 1.2% and
1.6% in the following months. In February 2024, the forward premium for these periods
traded slightly lower, averaging at 1.2%, 1.5%, and 1.5%, respectively.
Figure 202: USDINR and forward premium

% USDINR and forward premium Price
7
1M 3M 6M USDINR (RHS) 84
6
82
5 80
4 78
76
3
74
2
72
1 70
0 68
Feb-19
Oct-19
Feb-20
Oct-20
Feb-21
Oct-21
Feb-22
Oct-22
Feb-23
Oct-23
Feb-24
Jun-19
Jun-20
Jun-21
Jun-22
Apr-19
Aug-19
Dec-19
Apr-20
Aug-20
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Jun-23
Dec-22
Apr-23
Aug-23
Dec-23
Source: CMIE Outlook, NSE EPR.
151/239
Market Pulse
Institutional flows across market segments in India

FIIs turned moderate net buyers of equity in February…: FIIs had largely remained
buyers of Indian equities in FY24, barring the two months of moderate selling in
September and October. However, the new year saw FIIs selling Indian equities as global
yields hardened on the back of rate cut expectations getting pushed back, with net
outflows of US$ 3.1bn in January. February saw a reversal, with FIIs turning moderate
buyers of Indian equities, leading to net inflows of US$ 196mn in the month. FIIs have
been buying aggressively yet again in March so far, with net inflows of US$ 4.9bn already
in the month so far (as on March 19th, 2024). On a FYTD basis, FIIs have injected a net
amount of US$ 25.9bn into the Indian equity market (as on March 19th, 2024), compared
to net outflows of US$ 4.7bn during the same period last fiscal year.
…while inflows into debt market scaled new highs: FIIs have been net buyers of Indian
debt since the beginning of this fiscal, and February 2024 saw the largest quantum of
buying in FY24 with net inflows of US$ 2.7bn (79-month high). This strengthened buying
in Indian debt comes on the back of the upcoming inclusion of India in the JP Morgan
Bond Index as well as high interest yield differential between Indian and US bond yields.
On a FYTD basis, FIIs have injected a net amount of US$ 14.2bn (as on March 19th, 2024),
compared to net outflows of US$ 1.1bn during the same period last fiscal year.
Figure 203: Net inflows by FIIs in Indian equity and debt markets
DIIs remained strong buyers of Indian equities: DIIs continued to buy in the Indian
equity market, with net inflows of Rs 25,379 crore in the month of February 2024. March
has seen an uptick in the buying sentiment among DIIs, with net inflows of Rs 37,757
crore in the month so far (as on March 19 th, 2024). This translates to cumulative net
inflows of Rs 1.9 lakh crore in FY24 thus far (as on March 19th, 2024), slightly lower than
net inflows of Rs 2.4 lakh crore in the same period last year.
152/239
Market Pulse
Figure 204: Net inflows by DIIs in Indian equity markets

Rs lakh crore
Cumulative net DII flows over last eight years (FY)
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
153/239
Market Pulse
Fund mobilization
Market Statistics: Primary market
The overall fundraising recorded robust growth in February: The overall fundraising
recorded a robust 81% MoM rise to Rs 1.5 lakh crore during previous month, of which
equity funds raised stood at Rs 20,127 crore (+100% MoM), debt funds raised stood at
Rs 1.3 lakh crore (+88% MoM) and the remaining Rs 880 crore were through fresh listing
of InvITS.
Among equity issuances, 25 new IPOs (+79% MoM) mobilized Rs 7,624 crore (+133%
MoM), of which fresh issuances amounted to Rs 5,977 crore or 78% of the funds raised
and Offer for Sale (OFS) amounted to Rs 1,647 crore. On the other hand, total fund
mobilization from debt issuances recorded a growth of 88% MoM to Rs 1.3 lakh (incl.
reissuances), of which CP issuances amounted to Rs 72,461 crore, followed by NCD
private placements of Rs 52,086 crore and NCD public issues of Rs 1,635 crore.
The total fund mobilization for the current fiscal (As on February 29 th, 2024) stood at Rs
12.3 lakh crore, of which equity raising stood at Rs 1.9 lakh surpassing Rs 1.6 lakh crore
equity raised in FY23, while debt issuances and business trusts stood at Rs 10.2 lakh
crore and Rs 26,206 crore respectively.
Table 41: Resource mobilization through equity and debt in the last seven months
Segments Modes Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Fresh listing 1,944 4,785 4,179 2,949 3,814 1,512 5,334
OFS 2,703 3,974 300 9,578 5,118 1,443 1,586
Equity (Main Board) Fresh listing + OFS 4,646 8,760 4,479 12,527 8,932 2,956 6,920
- Primary markets Rights 1,061 241 6 49 - 148 7,891
Preferential allotment 1,274 1,685 1,834 2,277 15,960 1,029 1,160
QIPs 7,400 3,102 5,609 11,364 15,533 3,255 3,400
Fresh listing 313 433 556 331 405 309 643
OFS - 41 29 7 25 13 60
Equity (SME) - Fresh listing + OFS 313 473 585 338 430 323 704
Primary markets Rights - 12 73 31 - - -
Preferential allotment 14 87 44 53 18 22 10
QIPs - - - - 80 - -
Equity (Main Board)
- Secondary OFS - 2,031 1,132 473 1,234 2,320 41
markets
Equity (SME) -
OFS - - - - - - -
Secondary markets
Total equity raised 14,709 16,391 13,763 27,112 42,187 10,054 20,127
Fresh listing - - - - - 2,263 880
Rights 2,862 - 514 - - - -
InvITS
Preferential allotment - 404 - 200 - 2,190 -
QIPs - - - - 669 - -
Fresh listing - - - - - - -
Rights - - - - - - -
REITs
Preferential allotment 400 - - - - - -
QIPs 2,305 - - - - - -
Total business trusts raised 5,567 404 514 200 669 4,453 880
CPs 44,230 70,090 26,609 38,905 35,365 26,794 72,461
Debt NCDs (Private) 31,293 26,803 16,689 55,556 83,626 40,211 52,086
NCDs (Public) 1,455 1,103 2,000 641 1,510 - 1,635
Total debt raised 76,978 97,996 45,298 95,102 1,20,500 67,005 1,26,182
Total fund mobilisation 97,254 1,14,790 59,575 1,22,414 1,63,357 81,512 1,47,188
Source: NSE EPR. Note: In case of debt issuances, data includes reissuances as well.
154/239
Market Pulse
Table 42: Resource mobilization through equity and debts during last three years (Year-wise)
Segments (Rs Cr) Modes FY22 FY23 FY24TD
Fresh listing 40,641 14,359 27,212
OFS 70,979 38,080 31,047
Equity (Main Board) - Primary Fresh listing + OFS 1,11,620 52,440 58,259
markets Rights 25,555 5,267 13,301
Preferential allotment 57,883 80,952 33,077
QIPs 31,441 8,212 58,504
Fresh listing 481 1,181 3,910
OFS 23 149 273
Fresh listing + OFS 504 1,330 4,184
Equity (SME) - Primary markets
Rights 355 149 120
Preferential allotment 79 119 302
QIPs - - 80
Equity (Main Board) -
OFS 14,210 11,033 18,224
Secondary markets
Equity (SME) - Secondary
OFS - - -
markets
Total equity raised 2,41,646 1,59,503 1,86,049
Fresh listing 13,841 1,166 8,368
Rights 1,284 - 3,376
InvITs
Preferential allotment - 1,088 7,887
QIPs - 1,216 669
Fresh listing - - 3,200
Rights - - -
REITs
Preferential allotment 950 - 400
QIPs - - 2,305
Total funds raised by business trusts 16,075 3,470 26,206
CPs 8,31,120 7,03,755 5,24,941
Debt NCDs (Private) 3,58,911 5,09,338 4,87,161
NCDs (Public) 5,398 4,343 10,491
Total debt raised 11,95,428 12,17,436 10,22,594
Total fund mobilization 14,53,148 13,80,409 12,34,849
Source: NSE EPR. Note: In case of debt issuances, data includes reissuances as well.
Data for FY24 is as of February 2024.
155/239
Market Pulse
New listings in the month

Equities of 27 new companies were added on NSE in February: New listings witnessed
robust MoM growth with 25 new companies getting listed on NSE. Of which, nine (9) were
listed on the mainboard and 16 were listed on the emerge platform. Two (2) companies
of BSE mainboard also got listed on NSE mainboard during the month. Of these 27
companies, 22 companies recorded gains on listing.
The total number of SME companies’ listings on Emerge platform reached 435 with a total
fund mobilisation of Rs 9,315 crore as of end of Feb-24, of which 138 companies have
already migrated to the mainboard of the exchange. Maharashtra ranks 1 st in terms of
companies listed on Emerge platform with 124 listings, followed by Gujarat with 123
listings and Delhi with 52 listings.
Table 43: NSE Mainboard during February 2024

Listing Gain Market Cap Traded value * Issue Size
Listing Date Name of the company
(%) (Rs Cr) (Rs Cr) (Rs Cr)
Feb 06, 24 BLS E-Services Limited 125.9 3,325 1,687 309

Feb 12, 24 Apeejay Surrendra Park Hotels Limited 20.0 4,343 1,115 920
Feb 14, 24 Capital Small Finance Bank Limited -8.1 1,959 136 523
Feb 14, 24 FORCE MOTORS LTD# -0.6 5,827 40 #N/A
Feb 14, 24 Jana Small Finance Bank Limited -4.3 3,850 217 570
Feb 14, 24 Rashi Peripherals Limited 9.2 2,119 512 600
Feb 16, 24 Entero Healthcare Solutions Limited -2.3 5,000 215 1,600
Feb 20, 24 Vibhor Steel Tubes Limited 181.5 846 97 72
Feb 27, 24 Saurashtra Cement Limited# 1.0 1,299 2 #N/A
Feb 28, 24 Juniper Hotels Limited 1.4 8,933 875 1,800
Feb 29, 24 GPT Healthcare Limited 15.6 1,647 430 525
Source: NSE EPR. * Traded value provided here represents the value on the listing date. #BSE Mainboard to NSE Mainboard.
Table 44: NSE Emerge platform during February 2024

Listing Gain Market Cap Traded value * Issue Size
Listing Date Name of the company
(%) (Rs Cr) (Rs Cr) (Rs Cr)
Feb 02, 24 Delaplex Limited 60.9 296 36 46.1
Feb 02, 24 Docmode Health Technologies Limited 140.8 57 11 6.7
Feb 02, 24 Fonebox Retail Limited 185.7 215 32 20.4
Feb 05, 24 Megatherm Induction Limited 83.3 392 37 53.9
Feb 06, 24 Baweja Studios Limited 1.7 320 17 97.2
Feb 12, 24 Italian Edibles Limited -19.1 85 5 26.7
Feb 15, 24 Alpex Solar Limited 186.1 845 96 74.5
Feb 16, 24 Polysil Irrigation Systems Limited 3.7 62 5 17.4
Feb 19, 24 Wise Travel India Limited 32.7 488 51 94.7
Feb 23, 24 Atmastco Limited 18.2 236 39 56.3
Feb 23, 24 Esconet Technologies Limited 245.2 341 36 28.9
Feb 23, 24 Interiors & More Limited 18.9 198 18 42.0
Feb 23, 24 Kalahridhaan Trendz Limited 4.8 85 12 22.5
Feb 23, 24 Thaai Casting Limited 141.4 451 66 47.2
Feb 27, 24 Deem Roll Tech Limited 55.0 175 33 29.3
Feb 27, 24 Zenith Drugs Limited 39.2 180 23 40.7
Source: NSE EPR. * Traded value provided here represents the value on the listing date
156/239
Market Pulse
Table 45: Top 10 State-wise issuances on NSE Emerge platform as of February 2024
State-wise Number of companies Amount Raised (Rs Cr) M-Cap # (Rs Cr)
MAHARASHTRA 124 2,554 33,084
GUJARAT 123 2,446 29,946

DELHI 52 1,448 20,413
MADHYA PRADESH 22 446 7,816
TAMIL NADU 12 382 5,794
KARNATAKA 11 355 2,806
TELANGANA 14 294 1,889
WEST BENGAL 18 282 3,591
RAJASTHAN 19 243 7,371

UTTAR PRADESH 6 147 1,415
Source: NSE EPR, # CMIE Prowess
157/239
Market Pulse
Investor growth
Region-wise distribution of total registered investors
Total registered investors reached 9 crore in Feb’24: The total number of registered
investors stood at an all-time high crossing 9 crore at the end of February, up from around
7.3 crore at the same time last year. Region-wise, North India remained on top with a
registered investor base of 3.2 crore, followed by West India at 2.8 crore, South India at
1.9 crore, and East India at 1.1 crore. The number of investors has shown an accelerated
trend, while it took about nine months to reach from 6 to 7 crore unique investors, it took
eight months to reach from 7 to 8 crore and the rise to 9 crore took only five months.
Figure 205: Region-wise distribution of total registered investors- Long term trend
lakh Total registered investors (in lakh)
East India North India South India West India Total
1000
Feb-24, 900.0
900
800
Jan-23, 705.7
700
Apr-22, 607.0
600
Oct-21, 506.7
500
Mar-21, 400.3
400
Jan-20, 301.5
300
Jun-16, 201.3
200
100
0
May-20
May-10
Mar-11
Sep-13
Jul-14
May-15
Sep-18
Jul-19
Sep-23
Nov-12
Nov-17
Nov-22
Oct-10
Jan-12
Oct-15
Mar-16
Jan-17
Oct-20
Mar-21
Jan-22
Feb-14
Feb-24
Aug-11
Jun-12
Aug-16
Jun-17
Feb-19
Aug-21
Jun-22
Apr-13
Dec-14
Apr-18
Dec-19
Apr-23
Source: NSE EPR.

Note: East India includes Mizoram, Odisha, West Bengal, Assam, Manipur, Arunachal Pradesh, Tripura, Nagaland, Meghalaya, Sikkim, Chhattisgarh; West India includes
Maharashtra, Gujarat, Madhya Pradesh, Daman & Diu, Goa, Dadra & Nagar Haveli; North India includes Bihar, Jharkhand, Uttar Pradesh, Uttarakhand, Haryana, Delhi,
Punjab, Jammu & Kashmir, Himachal Pradesh, Chandigarh And Rajasthan; South India includes Telangana, Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Pondicherry,
Lakshadweep and Andaman & Nicobar.
Table 46: Region-wise distribution of total registered investors at end of each fiscal year (in lakhs)
Region FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24TD*
East India 19.0 21.2 24.1 27.0 30.4 39.3 65.7 82.8 105.5
North India 54.3 59.9 68.2 76.7 88.4 117.6 189.4 243.5 317.2
South India 48.4 53.1 59.7 66.6 75.1 97.0 132.5 157.3 186.3
West India 67.7 75.3 87.2 96.7 108.4 139.0 198.1 234.8 281.9
Others #
8.1 7.9 7.8 7.8 7.7 7.5 8.0 8.4 9.1
Total 197.4 217.3 247.0 274.9 310.0 400.3 593.7 726.9 900.0
Source: NSE EPR. *Data for FY24TD is as of February 2024. #Others include Army Personnel Officers and investors for whom state mapping is unavailable.
Maharashtra continues to have the highest share of registered investors: Maharashtra

continued to lead in terms of registered investors, accounting for 1.5 crore investors
(17.3% of total investor base). Uttar Pradesh overtook Gujarat in November 2022 to take
the second spot and has maintained that position since, with an investor base of 96.8 lakh
158/239
Market Pulse
as of February end. This was followed by Gujarat at 80.7 lakhs, West Bengal at 51.0 lakh
and Karnataka at 50.8 lakh. These five states together accounted for 48.3% of the
investor base as of February 2024.
Table 47: State-wise distribution of total registered investors at end of each fiscal year
States FY10 FY15 FY20 FY24TD
Count (‘000) Share (%) Count (‘000) Share (%) Count (‘000) Share (%) Count (‘000) Share (%)
Maharashtra 2,277 19.7 3,575 19.9 5,963 19.2 15,557 17.3
Uttar Pradesh 701 6.1 1,248 6.9 2,302 7.4 9,677 10.8
Gujarat 1,498 13.0 2,055 11.4 3,797 12.2 8,068 9.0
West Bengal 711 6.2 1,175 6.5 1,990 6.4 5,096 5.7
Karnataka 708 6.1 1,165 6.5 1,949 6.3 5,078 5.6
Rajasthan 426 3.7 667 3.7 1,328 4.3 5,027 5.6
Tamil Nadu 747 6.5 1,287 7.2 2,182 7.0 4,959 5.5
Madhya Pradesh 289 2.5 518 2.9 984 3.2 4,305 4.8
Andhra Pradesh 583 5.0 1,002 5.6 1,581 5.1 4,153 4.6
Delhi 780 6.8 1,197 6.7 1,853 6.0 4,133 4.6
Bihar 145 1.3 294 1.6 670 2.2 3,728 4.1
Haryana 327 2.8 531 3.0 971 3.1 3,073 3.4
Punjab 229 2.0 389 2.2 704 2.3 2,318 2.6
Kerala 345 3.0 583 3.2 942 3.0 2,212 2.5
Telangana 156 1.3 279 1.6 813 2.6 2,165 2.4
Assam 55 0.5 109 0.6 221 0.7 2,044 2.3
Orissa 121 1.1 250 1.4 494 1.6 1,945 2.2
Jharkhand 140 1.2 258 1.4 444 1.4 1,550 1.7
Chhattisgarh 67 0.6 129 0.7 252 0.8 1,065 1.2
Uttarakhand 66 0.6 123 0.7 234 0.8 920 1.0
Himachal Pradesh 31 0.3 60 0.3 123 0.4 550 0.6
Jammu & Kashmir 40 0.3 65 0.4 112 0.4 472 0.5
Chandigarh 38 0.3 63 0.3 100 0.3 207 0.2
Goa 30 0.3 48 0.3 82 0.3 203 0.2
Tripura 7 0.1 13 0.1 24 0.1 129 0.1
Pondicherry 12 0.1 22 0.1 41 0.1 92 0.1
Manipur 1.1 0.01 4.7 0.03 18 0.1 91 0.1
Meghalaya 3.1 0.03 5.9 0.03 12 0.04 54 0.1
Nagaland 1.0 0.01 2.6 0.01 7.6 0.02 42 0.05
Arunachal Pradesh 1.1 0.01 2.4 0.01 5.7 0.02 38 0.04
Dadra & Nagar Haveli 3.5 0.03 5.8 0.03 9.5 0.03 37 0.04
Sikkim 1.3 0.01 3.2 0.02 7.3 0.02 29 0.03
Andaman & Nicobar 1.8 0.02 3.3 0.02 4.7 0.02 22 0.02
Daman & Diu 2.6 0.02 3.9 0.02 6.2 0.02 20 0.02
Mizoram 0.3 0.00 0.8 0.00 2.6 0.01 16 0.02
Lakhswadeep 0.04 0.00 0.1 0.00 0.2 0.00 1.7 0.00
Ladakh 0.01 0.00 0.03 0.00 0.2 0.00 0.8 0.00
Others 1,007 8.7 823 4.6 773 2.5 924 1.0
Total 11,549 100 17,960 100 31,004 100 90,004 100
Source: NSE EPR. Note: Data for FY24TD is as of February 29th, 2024.
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Market Pulse
Figure 206: State-wise distribution of total registered investors as of February 2024
Source: NSE EPR.

Note: The maps above are created using the state-level shapefile from https://geographicalanalysis.com/gis-blog/download-free-india-shapefile-including-kashmir-
and-ladakh/
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Market Pulse
Region-wise distribution of new investor registrations

New investor registrations increased at a slower pace: The month of February saw 19.6
lakh new investor registrations, down 16% MoM from the all-time high of 23.3 lakh
registrations in Jan’24. With the addition of these new investors, the investor base
crossed 9 crore mark by the end of February.
The fall in Feb’24 was led by 19% MoM contraction in registrations from West India (6.5
lakh to 5.3 lakh), followed by an 11% contraction in East India (2.9 lakh to 2.6 lakh) and
16% in both North India (10.0 lakh to 8.4 lakh) and South India (3.9 lakh to 3.3 lakh).
Despite the MoM dip in Feb’24, North India’s share of new investor registrations inched
up marginally from 42.7% to 42.8% in February. East India also recorded an increase in
its share, moving from 12.5% to 13.3% in the month gone by. The share of South India
remained constant at 16.8% while West India saw a 90bps loss in its share, slipping back
to the Nov’23 level of 27.1%. Total investor registrations in the first 11 months of FY24
(Apr-Feb’24) stood at 1.7 crore, which is 40.2% higher than total registrations in the same
period last year (Apr-Feb’23).
Figure 207: Region-wise distribution of new investors registered each month
Number of new investors (lakhs)

25.0
23
20
21
20
19
20.0 1918
16
16 16 16
15 15 14
1515 15 15 14
15.0 14
13
13
12 1211 12
11 11
1010 10 10 11
9 10 9 10
10.0 9 8
8
8
7 6 6
5 6
5.0 4 4 4 4 4
3
3 2 3 3
2
0.0
Oct-19
Oct-20
Oct-21
Oct-22
Oct-23
Jun-19
Feb-20
Jun-20
Feb-21
Jun-21
Feb-22
Jun-22
Feb-23
Jun-23
Feb-24
Aug-19
Dec-19
Apr-20
Aug-20
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Source: NSE EPR.

Note: East India includes Mizoram, Odisha, West Bengal, Assam, Manipur, Arunachal Pradesh, Tripura, Nagaland, Meghalaya, Sikkim, Chhattisgarh; West India includes
Maharashtra, Gujarat, Madhya Pradesh, Daman & Diu, Goa, Dadra & Nagar Haveli; North India includes Bihar, Jharkhand, Uttar Pradesh, Uttarakhand, Haryana, Delhi,
Punjab, Jammu & Kashmir, Himachal Pradesh, Chandigarh And Rajasthan; South India includes Telangana, Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Pondicherry,
Lakshadweep and Andaman & Nicobar.
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Market Pulse
Figure 208: Region-wise distribution of new investors registered each financial year
lakh New investor registrations per FY
250
193.0
200
171.3
150 132.6
89.8
100
50 38.5
0
FY20 FY21 FY22 FY23 FY24TD*
Source: NSE EPR. * Data for FY24TD is as of February 2024.
Uttar Pradesh maintains the lead in the new investor registrations: In February, Uttar
Pradesh continued to lead with 3.2 lakh new registrations, registering a significant 6.7%
MoM dip from the last month (3.5 lakh in Jan’24, +102% YoY). Maharashtra yet again took
the second place with close to 3 lakh new registrations in Feb’24 translating into a 86%
YoY growth (-12.6% MoM). While Uttar Pradesh’s share rose marginally to 14.9% (vs
14.8% in Jan’24), Maharashtra saw a significant dip in its share from 14.5% in Jan’24 to
13.7% in February.
New registrations in Gujarat also saw a dip in February, with an 11% MoM decline from
1.8 lakh in Jan’24 to 1.6 lakh in Feb’24, resulting further fall in its share of new
registrations from 11.2% in Dec’23 to 7.6% in Feb’24. Among other top 10 states,
Rajasthan with 1.4 lakh new investors (6.7% share, -7.2% MoM), West Bengal with 1.5
lakh new investors (6.8% share, 0% MoM), Madhya Pradesh (5.5% share, -4.2% MoM,
1.2 lakh new investors), Tamil Nadu (4.5% share, -1.8% MoM, 97k new investors) and
Delhi (4.0% share, -2.3% MoM, 87k new investor) all saw increase in their share for the
month of February. On the other hand, Karnataka (5.0% share, -11% MoM, 1.1 lakh new
investors), saw a decline in its shares of new registrations pan-India and Bihar (5.2%
share, + 27% MoM, 1.2 lakh new investors) sustained with the same share as last month
at 5.2%. The top five states together contributed 48.9% of all new registrations in the first
eleven months of FY24.
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Market Pulse
Table 48: Number of new investors registered in top 25 states (in ‘000)
State Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Uttar Pradesh 245.6 212.6 203.2 295.2 345.7 322.7

Maharashtra 204.0 188.7 200.0 301.0 339.0 296.4
Gujarat 119.2 103.1 107.5 235.9 184.1 164.4
West Bengal 102.8 86.2 88.8 121.2 146.7 146.7
Rajasthan 104.9 87.0 85.1 147.0 155.0 143.8
Bihar 92.6 83.7 79.4 111.6 131.1 121.2
Madhya Pradesh 94.2 78.9 78.0 114.2 124.0 118.8
Karnataka 74.3 67.4 71.2 95.7 121.2 107.9
Tamil Nadu 82.8 73.0 80.0 90.7 99.2 97.4
Delhi 63.2 52.3 51.5 77.0 89.5 87.4
Haryana 60.8 48.9 52.1 83.5 85.9 71.0
Punjab 54.7 49.3 51.6 70.1 67.8 61.5
Andhra Pradesh 38.1 37.5 42.1 52.0 61.9 60.3
Telangana 37.0 35.0 38.0 47.4 59.8 54.6
Assam 41.1 40.4 39.3 48.3 55.9 51.7
Jharkhand 33.5 30.4 29.6 41.0 46.6 44.4
Kerala 32.5 32.4 33.1 35.4 47.7 42.0
Odisha 34.5 31.1 30.6 37.4 44.1 41.8
Chattisgarh 23.5 21.3 21.1 29.6 32.7 33.2
Uttarakhand 20.1 16.3 16.2 25.6 30.9 29.4
Jammu & Kashmir 11.4 9.5 10.2 16.4 20.1 20.4
Himachal Pradesh 13.0 10.1 10.1 16.7 20.8 19.6
Goa 2.8 2.7 2.7 3.8 5.2 5.0
Tripura 3.4 2.6 2.8 3.8 4.5 4.5
Chandigarh 2.5 2.0 1.9 3.2 3.7 3.5
Source: NSE EPR.
Note: Top 25 states are chosen based on last month’s data.
Contribution of top 10 districts remained broadly steady in February 2024: New

investor registrations continued to remain concentrated in a few districts. The
contribution of top 10 districts remained the same at 20.2% in the first two months of
2024, even as the number of registrations in these districts contracted by 7.2% MoM to
4.4 lakh. Delhi recorded the highest number of new investor registrations again in
February out of all districts with 1.4 lakh registrations (-4% MoM), followed by Mumbai
with 97 thousand registrations (-9% MoM). Average contraction in the top 10 districts was
recorded at 8% MoM with Pune (-13% MoM to 32k registrations), Bangalore (-10% MoM
to 30k registrations), Ahmed Nagar (-10% MoM to 16k registrations) and Nagpur (-11%
MoM to 15.7k registrations) witnessing double-digit contraction in new investor
registrations. Only 112 districts registered a MoM rise in new investor registrations in
February.
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Market Pulse
Figure 209: Number of new investors registered in top ten districts (in ‘000)
'000
Number of new investors registered in top 10 districts (in thousands)
160.0
144.9
Sep Oct Nov Dec Jan Feb
140.0
120.0
96.9
100.0
80.0
60.0
40.0 32.4 29.8 28.8 28.4

23.9 20.6
16.0 15.7
20.0
0.0
Delhi-NCR Mumbai Pune Bangalore Ahmedabad Surat Jaipur North 24 Ahmed Nagpur
(MH/TN/RG) Parganas Nagar
Source: NSE EPR.
Note: Top 10 districts are chosen based on last month’s data.
Table 49: Number of new investors registered in top ten districts (in ‘000)
('000) Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Delhi-NCR 105.7 88.0 86.4 129.3 150.9 144.9
Mumbai (MH/TN/RG) 64.8 59.1 62.3 93.8 106.5 96.9
Pune 21.9 20.3 22.3 32.6 37.5 32.4
Bangalore 20.2 17.7 19.6 25.7 33.2 29.8
Ahmedabad 20.3 15.9 19.2 45.1 30.9 28.8
Surat 18.9 14.7 17.3 39.3 31.2 28.4
Jaipur 17.7 14.2 14.8 26.4 25.2 23.9
North 24 Parganas 14.4 12.1 13.2 17.9 20.7 20.6
Ahmed Nagar 10.3 9.1 9.6 15.2 17.8 16.0
Nagpur 11.9 11.2 11.8 16.7 17.5 15.7
Source: NSE EPR.
Note: Top 10 districts are chosen based on last month’s data.
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Market Pulse
Market activity across segments and investor categories

Total turnover across segments
CM segment turnover witnessed marginal drop after registering a record in January:
The overall turnover of NSE’s capital market (cash market) segment stood at Rs 24.6 lakh
crore (-1.3% MoM) during Feb-24 after reaching a peak of Rs 24.9 lakh crore in the month
of January. The aggregate turnover had reached Rs 16.8 lakh crore in Aug-23, nearly
double the turnover in Apr-23. However, the turnover dropped in the subsequent two
months until the recovery started from Nov-23 and reached an all-time high during Jan-
24, supported by strong economic environment and growing participation across all
investor categories. The overall turnover witnessed a marginal moderation during the
month gone by.
FO turnover demonstrated an uptick during the month: In contrast with the trend in CM
segment, equity derivatives turnover witnessed moderate growth in the month of
February. NSE equity futures witnessed a marginal increase to Rs 38.1 lakh crore (+0.5%
MoM) in Feb-24, with stock futures registering a 1% MoM increase to Rs 29.7 lakh crore,
and index futures, on the other hand, recording a 1.1% MoM drop to Rs 8.4 lakh crore.
Equity options premium turnover, however, registered a marginal drop to Rs 16.8 lakh
crore, of which index options premium turnover stood at Rs 15.1 lakh crore (0.3% MoM
jump) and stock options premium turnover stood at Rs 1.7 lakh crore (-3% MoM drop).
Currency derivatives turnover recorded a significant drop during the month: The
overall currency futures turnover experienced a drop to Rs 4.6 lakh crore (-24.3% MoM)
and currency options premium turnover declined to Rs 1,698 crore (-25% MoM), which
was also the lowest monthly turnover recorded since Sept-21. While a recovery in trading
activity of currency derivatives was underway for three consecutive months post Nov-23,
the month of February marked a significant contraction in trading activity, thanks to a
decline in proprietary trading.
Commodity options premium turnover recorded growth: The total premium turnover in
commodity options recorded a healthy increase of 42.2% MoM to Rs 161 crore signifying
a rising interest for the instrument. On the other hand, the turnover in commodity futures
witnessed a drop of 41.5% to Rs 19 crore during Feb-24. NSE offers 28 derivatives
contracts covering 10 commodities such as bullion, base metals, and energy on its
platform.
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Market Pulse
Table 50: Total turnover across segments in the last six months (Sep’23–Feb’24)
Segment (Rs Cr) Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Cash market 16,70,807 13,43,519 14,82,906 20,79,594 24,91,181 24,57,671
Equity Futures 25,89,944 23,98,283 24,04,714 31,88,631 37,89,859 38,09,270

Stock Futures 20,39,494 18,94,018 19,27,121 25,24,107 29,41,231 29,69,909
Index Futures 5,50,450 5,04,265 4,77,593 6,64,524 8,48,629 8,39,361
Equity Options (Premium) 12,10,542 10,64,060 9,78,201 14,16,841 16,77,880 16,77,660

Stock Options 1,03,149 84,111 92,658 1,80,315 1,77,503 1,72,161
Index Options 11,07,393 9,79,949 8,85,543 12,36,526 15,00,376 15,05,499
Currency derivatives
Currency Futures 6,73,079 5,72,990 5,73,571 6,10,933 6,12,806 4,64,005
Currency Options (Premium) 2,962 1,736 1,702 1,957 2,265 1,698
Interest rate derivatives 3,139 3,367 2,706 2,169 1,978 1,808
Commodity derivatives
Commodity Futures 651 258 99 33 32 19
Commodity Options (Premium) - 18 15 58 113 161
Source: NSE EPR.
Table 51: Total turnover across segments in the last five years (FY20 to FY24TD)
Segment (Rs Cr) FY20 FY21 FY22 FY23 FY24TD
Cash market 89,98,811 1,53,97,908 1,65,66,237 1,33,05,073 1,82,46,400
Equity Futures 2,15,52,041 2,71,46,011 2,94,68,316 2,85,92,989 2,95,93,003
Stock Futures 1,48,74,729 1,80,98,365 2,10,38,938 1,90,72,304 2,29,01,602
Index Futures 66,77,312 90,47,646 84,29,378 95,20,685 66,91,401
Equity Options (Premium) 13,07,932 32,08,778 68,81,160 1,18,88,256 1,39,43,246
Stock Options 2,28,353 5,79,352 10,38,830 9,32,701 12,51,362
Index Options 10,79,578 26,29,426 58,42,330 1,09,55,556 1,26,91,884
Currency Futures 48,43,160 57,17,820 70,56,916 1,01,15,658 66,06,928
Currency Options (Premium) 13,202 14,764 24,994 47,540 28,251
Interest rate derivatives 3,60,818 97,391 26,357 26,296 28,053
Commodity Futures 6,362 5,484 2,273 14 5,409
Commodity Options (Premium) - 284 131 112 386

Source: NSE EPR. Data for FY24TD is as of February 2024.
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Market Pulse
Average daily turnover (ADT) across segments

ADT exhibited healthy growth across segments barring currency derivatives: NSE CM
segment ADT touched record Rs 1.2 lakh crore (+3.4% MoM) in Feb-24, significantly
higher than Rs 80,381 crore recorded during FY24 (As on February 29 th, 2024). The ADT
in equity derivatives segment registered a higher growth, equity futures ADT stood at 1.8
lakh crore (+5.3% MoM) in Feb-24, significantly higher than Rs 1.3 lakh crore recorded
during FY24, while equity options average daily premium turnover grew to Rs 79,889
crore (+4.7% MoM) in Feb-24 compared to Rs 61,424 crore recorded during the fiscal.
On the other hand, ADT in NSE’s currency futures contracted to Rs 23,200 crore (-20.5%
MoM) in Feb-24 – the lowest in last 29 months – significantly lower than Rs 29,627 crore
recorded in FY24 and Rs 41,288 crore recorded in the previous fiscal year. While ADT in
currency futures was the lowest since Sep-21, average daily premium turnover for
currency options touched a 3-month low of Rs 85 crore (-21.3% MoM) in Feb-24,
compared to Rs 127 crore recorded during FY24 (as of February 29 th, 2024) and Rs 194
crore during FY23.
Interest rate futures ADT touched Rs 90 crore (-4% MoM) in Feb-24 – the lowest in last
18 months – lower than Rs 126 crore recorded in FY24. While commodity futures ADT
stood at Rs 0.9 crore (-41.5% MoM) in Feb-24 compared to Rs 23.1 crore recorded in
FY24, average daily premium turnover in currency options increased to Rs 7.7 crore
(+42.2% MoM), higher than Rs 1.6 crore recorded in FY24.
Table 52: Average daily turnover across segments in the last six months (Sep’23–Feb’24)
Segment (Rs Cr) Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Cash market 83,540 67,176 70,615 1,03,980 1,13,236 1,17,032
Equity Futures 1,29,497 1,19,914 1,14,510 1,59,432 1,72,266 1,81,394
Stock Futures 1,01,975 94,701 91,768 1,26,205 1,33,692 1,41,424
Index Futures 27,522 25,213 22,743 33,226 38,574 39,970
Equity Options (Premium) 60,527 53,203 46,581 70,842 76,267 79,889
Stock Options (Premium) 5,157 4,206 4,412 9,016 8,068 8,198
Index Options (Premium) 55,370 48,997 42,169 61,826 68,199 71,690
Currency Futures 33,654 28,649 27,313 30,547 29,181 23,200
Currency Options (Premium) 148 87 81 98 108 85
Interest rate derivatives 157 168 129 108 94.18 90
Commodity Futures 31.0 12.3 4.3 1.6 1.5 0.9
Commodity Options (Premium) - 0.8 0.6 2.9 5.4 7.7

Source: NSE EPR.
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Market Pulse
Table 53: Average daily turnover across segments (FY17 to FY24TD)

Segment (Rs Cr) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24TD
Cash market 20,387 29,410 32,052 36,432 61,839 66,799 53,434 80,381
Equity Futures 62,361 82,959 87,564 87,255 1,09,020 1,18,824 1,14,831 1,30,366
Stock Futures 44,877 63,405 65,109 60,222 72,684 84,834 76,596 1,00,888
Index Futures 17,484 19,555 22,455 27,034 36,336 33,989 38,236 29,478
Equity Options (Premium) 1,797 2,475 3,444 5,295 12,887 27,747 47,744 61,424
Stock Options 385 603 806 925 2,327 4,189 3,746 5,513
Index Options 1,411 1,873 2,637 4,371 10,560 23,558 43,998 55,911
Currency Futures 10,288 10,726 19,156 19,931 23,338 29,282 41,288 29,627
Currency Options (Premium) 30 31 60 54 60 104 194 127
Interest rate derivatives 1,272 1,327 1,010 1,485 398 109 107 126
Commodity Futures - - 28.5 24.6 21.5 8.8 0.1 23.1
Commodity Options (Premium) - - - - 1.1 0.5 0.4 1.6

Source: NSE EPR.
Note: Data for FY24TD is as of February 2024.
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Market Pulse
NSE CM segment ADT recorded another high in February 2024: ADT in NSE CM Segment
registered 3.4% MoM rise to Rs 1.2 lakh crore, which was 1.5x the ADT recorded in FY24
(Apr-23 to Feb-24) and more than 2x the ADT recorded in FY23. The growth in the trading
activity can be attributed increased investor participation and stable macroeconomic
conditions in the country which has improved investor sentiments for Indian equities.
Across products, trading activity has improved in main board equities, SMEs, ETFs, InvITs,
REITs and SGBs over last year same period.
Table 54: Average daily turnover in NSE’s CM Segment

% MoM Apr-23 to Apr-22 to % YoY
Products (Rs Cr) Feb-24 Jan-24 FY23 CY24TD
change Feb-24 Feb-23 change
Capital Market 117,032 113,235 3.4 80,381 53,844 49.3 53,434 115,090
Equities (Main Board) 115,480 111,673 3.4 79,257 53,167 49.1 52,753 113,532
Exchange Traded Funds 975 1,070 (8.9) 725 481 50.8 486 1,023
SME Emerge 249 257 (3.1) 139 35 302.4 34 253
Sovereign Gold Bonds 13 8 63.7 9 7 31.1 7 10
InvITs 33 21 57.9 31 12 166.8 13 27
REITs 64 61 4.1 49 46 6.6 45 62
Mutual Funds (Close Ended) 0 0 NA 0 0 (80.0) 0 0
Others 219 146 50.1 171 98 75.2 95 181
Source: NSE EPR.
Notes: 1. Average daily turnover (ADT) excludes auction market turnover. Equities (Main Board) include stocks in EQ, BE, BL and BZ series.
2. Others include corporate and government debt instruments (excl. SGBs), preferential shares, partly paid-up shares, warrants etc., among others.
3. Figures in brackets indicate negative numbers.
4. CY24TD is as of February 2024.
Figure 210: Trends in average daily turnover in NSE’s CM segment

Rs cr
90,000
80,381
80,000
70,000
60,000
50,000
40,000
30,000
20,000 14,148
10,000
0
FY09
FY08
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

Note: Average daily turnover (ADT) excludes auction market turnover. FY24 is as of February 2024.
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Market Pulse
NSE equity derivatives ADT registered growth: NSE equity futures ADT grew to Rs 1.8
lakh crore (+5.3% MoM) in Feb-24 which was ~1.4x the ADT recorded during FY24 (Apr-
23 to Feb-24), of which, stock futures ADT increased to Rs 1.4 lakh crore (+5.8% MoM)
and index futures ADT touched Rs 39,970 crore (+3.6% MoM) during the month.
Similarly, equity options average daily premium turnover (ADPT) increased to Rs 79,889
crore (+4.7% MoM) in Feb-24 which was 1.3x of ADT recorded during FY24 (Apr-23 to
Feb-24). Among equity options, the average daily premium turnover for stock options
grew to Rs 8,198 crore (+1.6% MoM) while ADT in index options expanded to Rs 71,690
crore (+5.1% MoM).
Table 55: Average daily turnover in NSE’s equity derivatives segment

Product (Rs Cr) Feb-24 Jan-24 FY23 CY24TD
Equity Futures 1,81,394 1,72,266 5.3% 1,30,366 1,15,308 13.1% 1,14,831 1,76,724
Stock futures 1,41,424 1,33,692 5.8% 1,00,888 77,387 30.4% 76,596 1,37,468
Index futures 39,970 38,574 3.6% 29,478 37,921 -22.3% 38,236 39,256
BANKNIFTY 17,966 16,679 7.7% 13,655 17,274 -21.0% 17,617 17,307
NIFTY 20,814 20,999 -0.9% 15,323 20,614 -25.7% 20,578 20,909
FINNIFTY 320 279 14.7% 226 32 607.3% 40 299
MIDCPNIFTY 868 617 40.7% 274 0 NM 0 740
Equity Options 79,889 76,267 4.7% 61,424 46,240 32.8% 47,744 78,036
Stock options 8,198 8,068 1.6% 5,513 3,801 45.0% 3,746 8,132
Index options 71,690 68,199 5.1% 55,911 42,439 31.7% 43,998 69,904
BANKNIFTY 35,863 34,704 3.3% 30,306 26,582 14.0% 27,516 35,270
NIFTY 26,066 23,669 10.1% 18,183 14,753 23.2% 15,017 24,840
FINNIFTY 6,523 6,889 -5.3% 6,115 1,104 453.8% 1,465 6,710
MIDCPNIFTY 3,238 2,936 10.3% 1,308 0 NM 0 3,083
Source: NSE EPR. NM means not measurable.
Note: 1. Above table reports premium turnover for Options contracts.
2. Data for CY24TD is as of February 2024.
Figure 211: Trends in average daily turnover in NSE’s equity derivatives segment
Rs Cr Rs Cr
Index Futures Index Options
1,40,000 70,000
Stock Futures Stock Options
1,20,000 60,000 5,513
1,00,000 50,000
80,000 1,00,888 40,000

60,000 30,000
55,911
40,000
20,000
20,000
29,478 10,000
-
-
FY23
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY24
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

Source: NSE EPR. Note: Above figure reports premium turnover for options contracts. FY24 is as of February 2024.
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Market Pulse
Average daily turnover declined for currency derivatives in Feb-24: The ADT in
currency futures dropped to a 29-month low of Rs 23,200 crore (-20.5% MoM) in Feb-24,
significantly lower than the average recorded during FY23 and FY24 (Apr-23 to Feb-24).
On the other hand, the average daily premium turnover declined to a 3-month low of Rs
85 crore (-21.3% MoM) in Feb-24 which was also significantly lower compared to ADT
recorded in FY23 and FY24 (Apr-23 to Feb-24).
USDINR contracts remained the top-traded contract with 74.3% market share in currency
futures and 98% in currency options turnover, followed by GBPINR with 15.5% share in
currency futures and 1.9% share in currency options.
Table 56: Average daily turnover in currency derivatives segment

Product % MoM Apr-23 to Apr-22 to % YoY
Feb-24 Jan-24 FY23 CY24TD
(Rs in Lakhs) change Feb-24 Feb-23 change
Currency futures
EURINR 1,84,934 2,08,903 (11.5) 2,01,616 2,43,325 (17.1) 2,40,181 1,97,211
EURUSD 1,307 2,099 (37.7) 1,543 1,931 (20.1) 1,802 1,712
GBPINR 3,59,509 3,50,795 2.5 3,36,007 3,49,235 (3.8) 3,45,070 3,55,046
GBPUSD 840 1,996 (57.9) 1,207 3,036 (60.3) 2,839 1,432
JPYINR 50,654 62,199 (18.6) 59,024 64,636 (8.7) 65,927 56,568
USDINR 17,22,693 22,92,026 (24.8) 23,63,025 34,80,198 (32.1) 34,71,929 20,14,303
USDJPY 87 107 (19.4) 325 1,121 (71.0) 1,120 97
Currency options
EURINR 8.3 2.4 249.2 2.9 4.5 (37.0) 4.4 5.3
EURUSD - - NA - 0.0 (100.0) 0.0 -
GBPINR 161.6 150.6 7.3 116.7 4.9 2293.4 4.9 156.0
GBPUSD - - NA - - NA - -
JPYINR 0.1 0.2 (51.2) 0.2 0.2 (20.7) 0.2 0.1
USDINR 8,319.6 10,634.3 (21.8) 12,548.9 19,098.7 (34.3) 19,394.6 9,505.2
USDJPY - - NA - 0.0 (100.0) 0.0 -
Source: NSE EPR.
Note: Above table reports premium turnover for Options contracts. Figures in brackets indicate negative numbers.
CY24TD is as of February 2024.
Figure 212: Trends in average daily turnover in currency derivatives segment

Rs Cr Currency Futures Rs Cr Currency Options
45,000 41,288 250
40,000
194
35,000 200
29,627
30,000
150 127
25,000
20,000
100
15,000
10,000 50
5,000
- -
FY17
FY23
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY18
FY19
FY20
FY21
FY22
FY24
FY21
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY22
FY23
FY24
Source: NSE EPR.

Note: Above figure reports premium turnover for options contracts. FY24 is as of February 2024.
171/239
Market Pulse
Average daily turnover in interest rate futures continued to decline in February 2024:
The average daily turnover (ADT) of interest rate futures registered another decline to Rs
90.4 crore (-4% MoM) in Feb-24 which is lower than ADT recorded during FY24 till date.
The ADT of interest rate future recorded four consecutive declines post Oct-23 resulting
in lowest ADT in 18 months.
Table 57: Average daily turnover in Interest rate derivatives

Product (Rs Lakhs) Feb-24 Jan-24 FY23 CY24TD
Interest rate futures 9,039 9,418 (4.0) 12,580 10,383 21.2 10,733 9,233
Interest rate options - - NA - 0 NA 0.0 0.0
Source: NSE EPR.
Note: Above table reports premium turnover for Options contracts. Figures in brackets indicate negative numbers. CY24TD is as of February 2024.
Trading in commodity options continued to grow in Feb-24: The ADPT of commodity

options registered a record of Rs 7.7 crore (+42.2% MoM) in Feb-24 which was
significantly higher than ADPT recorded during FY24 (Apr-23 to Feb-24). On the other
hand, average daily turnover (ADT) of currency futures declined to Rs 0.9 crore (-41.5%
MoM) in Feb-24 which was significantly lower than ADT recorded during FY24 (Apr-23 to
Feb-24). Contracts in SILVER, WTICRUDE and NATURALGAS products were actively
traded during the month.
Table 58: Average daily turnover in commodities derivatives

Product (Rs Lakhs) Feb-24 Jan-24 FY23 CY24TD
Commodity futures 89 151 (41.5) 2,312 5 42,849.1 5 120
Commodity options 765 538 42.2 165 41 306.3 44 652

Source: NSE EPR.
Note: Above table reports premium turnover for Options contracts. Figures in brackets indicate negative numbers. CY24TD is as of February 2024.
Figure 213: Trends in average daily turnover in commodity derivatives segment

Rs Cr Commodity Futures Rs Cr
Commodity Options
30.0 1.8 1.6
1.6
25.0 23.1
1.4
20.0 1.2
1.0
15.0
0.8
10.0 0.6
0.4
5.0
0.2
- -
FY19 FY20 FY21 FY22 FY23 FY24TD FY19 FY20 FY21 FY22 FY23 FY24TD
Source: NSE EPR. Note: Above figure reports premium turnover for options contracts. Data for FY24TD is as of February 2024.
172/239
Market Pulse
Category-wise turnover and investments in NSE’s CM segment

DIIs remained net buyers in Indian equities for seven straight months: DIIs net
investment stood at Rs 1.2 lakh crore in FY24 (Apr-23 to Feb-24), a significant portion of
this was invested through sustained net buying during the last seven months. While DIIs
showcased consistency with positive inflows during this period, individual investors
turned strong net buyers in the last two months resulting in net inflow of Rs 56,042 crores
in FY24 (Apr-23 to Feb-24) – nearly half of the net investments by DIIs during the same
period. Foreign investors, on the other hand, sold Indian equities worth Rs 51,307 crores
in the last two months, resulting in a net outflow of Rs 6,635 crore in FY24 (Apr-23 to
Feb-24).
Table 59: Category-wise flow in secondary markets in last three months (Dec’23-Feb’24)
Feb-24 Jan-24 Dec-23
Buy Value Sell Value Net Value Buy Value Sell Value Net Value Buy Value Sell Value Net Value
Category
(Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr)
Corporates 1,38,889 1,44,677 (5,788) 1,43,079 1,48,759 (5,680) 1,24,586 1,20,332 4,254
Foreign investors 3,20,852 3,34,524 (13,672) 3,03,509 3,41,144 (37,635) 2,79,638 2,57,091 22,547
DII 2,46,867 2,30,819 16,049 2,69,564 2,44,786 24,778 2,27,763 2,23,427 4,336
Individual investors 9,10,610 8,85,563 25,047 9,48,076 9,11,694 36,383 7,72,292 7,86,340 (14,048)
Prop 7,24,645 7,38,552 (13,907) 7,10,130 7,24,536 (14,406) 5,72,829 5,88,485 (15,656)
Others 1,15,808 1,23,536 (7,728) 1,16,823 1,20,261 (3,439) 1,02,486 1,03,919 (1,433)
Total 24,57,671 24,57,671 24,91,181 24,91,181 20,79,594 20,79,594

Source: NSE EPR.
Note: 1. DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Systems; Foreign investors – Foreign Institutional Investors, Foreign Portfolio Investors all categories, Foreign Direct Investors, Foreign Venture Capital Investors,
Foreign Nationals (FN), Qualified foreign investor, Depository Receipts, Eligible Foreign Entity and OCBs; Corporate - Public & Private Companies / Bodies Corporate;
Individual – Individual / Proprietorship firms, HUF and NRI; Others – Partnership Firm / Limited Liability Partnership, Trust / Society, Statutory Bodies and Non Govt
Organisation.
Table 60: Category-wise flow in secondary market during FY24TD and FY23
FY24TD FY23
Buy Value Sell Value Net Value Buy Value Sell Value Net Value
Category
(Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr)
Corporates 10,15,842 10,53,467 (37,625) 5,64,935 5,52,195 12,740
Foreign investors 26,33,697 26,40,333 (6,635) 18,97,269 21,26,049 (2,28,780)
DII 20,58,812 19,38,264 1,20,548 16,45,734 14,04,951 2,40,783
Individual investors 65,58,465 65,02,422 56,042 48,79,860 48,30,654 49,206
Prop 51,00,277 51,99,951 (99,674) 36,02,784 36,46,010 (43,226)
Others 8,79,306 9,11,961 (32,656) 7,14,491 7,45,214 (30,724)
Total 1,82,46,399 1,82,46,399 1,33,05,073 1,33,05,073
Source: NSE EPR.
Note: 1. DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Systems; Foreign investors – Foreign Institutional Investors, Foreign Portfolio Investors all categories, Foreign Direct Investors, Foreign Venture Capital Investors, Foreign
Nationals (FN), Qualified foreign investor, Depository Receipts, Eligible Foreign Entity and OCBs; Corporate - Public & Private Companies / Bodies Corporate; Individual –
Individual / Proprietorship firms, HUF and NRI; Others – Partnership Firm / Limited Liability Partnership, Trust / Society, Statutory Bodies and Non Govt Organisation.
3. Data for FY24TD is as of February 29th, 2024.
173/239
Market Pulse
Category-wise turnover and open interest in NSE’s derivatives segment

Average daily OI in index options moderated in February 2024: While average daily
open interest (OI) in index options in terms of number of contracts and notional value
declined on MoM basis with individual investors contributed to over 30% of the decline in
the average open interest in index options, it increased across the rest of the instruments
in the equity derivatives segment in Feb-24. While individual investors contributed 34.7%
of the index options premium turnover, their share of average open interest in terms of
number of contracts and notional value stood higher at 45.7% and 39.9% respectively.
While prop. traders accounted for a higher share of turnover across instruments,
individual investors exhibited a higher share of average daily open interest. Individual
investors’ participation was higher in index options, as compared to other instruments, in
terms of premium turnover, however, they accounted for a higher share in stock options
in terms of average daily open interest. Prop. traders, on the other hand, were more active
in stock options in terms of premium turnover and average daily open interest.
Table 61: Category-wise turnover and open interest (OI) in equity derivatives in the last two months
Derivatives Markets Feb-24 Jan-24
Open Open
Open Open
Buy Value Sell Value Interest Buy Value Sell Value Interest
Category Interest Interest
(Rs Cr) (Rs Cr) (No of (Rs Cr) (Rs Cr) (No of
(Rs Cr) (Rs Cr)
contracts) contracts)
Stock Futures 29,69,909 29,69,909 41,30,566 3,38,689 29,41,231 29,41,231 38,14,701 3,04,837
Corporates 2,26,028 2,23,490 4,72,312 38,842 2,00,778 1,98,339 4,37,754 35,887
Foreign investors 7,15,030 7,28,733 69 5 6,56,286 6,58,077 5 0
DII 2,57,358 2,57,257 1,276 97 2,32,008 2,45,597 1,283 95
Individual investors 5,15,884 5,08,969 10,49,754 86,052 5,20,915 5,07,477 9,50,852 75,938
Prop 10,75,150 10,72,180 5,33,637 43,556 11,05,955 11,05,624 5,16,068 40,926
Others 1,80,459 1,79,280 20,73,517 1,70,136 2,25,289 2,26,117 19,08,740 1,51,991
Stock Options 1,72,161 1,72,161 34,40,959 2,92,446 1,77,503 1,77,503 30,79,711 2,47,894
Corporates 5,524 5,719 1,30,877 22,472 5,633 5,834 1,28,008 19,329
Foreign investors 10,376 10,371 3 2 9,005 9,174 3 1
DII 147 344 3 113 144 416 9 114
Individual investors 50,247 49,339 18,84,233 1,22,634 49,884 48,936 16,87,750 1,05,680
Prop 1,02,389 1,02,919 10,93,257 1,05,565 1,09,577 1,09,767 10,08,575 90,851
Others 3,477 3,470 3,32,587 41,661 3,260 3,377 2,55,366 31,919
Index Futures 8,39,361 8,39,361 5,02,685 46,061 8,48,629 8,48,629 4,71,744 43,541
Corporates 1,00,615 99,787 77,291 6,999 1,06,804 1,02,996 59,356 5,396
Foreign investors 1,06,151 1,00,660 - - 1,08,515 1,21,737 - -
DII 24,978 24,070 97 11 25,798 30,788 117 13
Prop 2,90,911 2,96,436 64,625 5,299 2,85,582 2,82,736 48,770 4,262
Others 58,283 58,663 2,33,742 23,160 62,832 61,740 2,50,627 24,285
Index Options 15,05,499 15,05,499 1,31,60,884 11,54,497 15,00,376 15,00,376 1,37,03,735 12,03,611
Corporates 37,285 37,820 11,68,993 1,50,784 37,639 37,904 11,84,285 1,53,782
DII 993 949 5,007 395 1,195 1,136 4,550 319
Individual investors 5,25,651 5,20,379 60,19,091 4,60,739 5,19,599 5,13,530 61,86,950 4,76,738
Prop 7,10,285 7,13,068 29,00,157 2,49,801 7,22,362 7,25,386 29,14,990 2,59,925
Others 58,469 58,853 30,66,770 2,92,617 60,235 60,801 34,12,236 3,12,695
Source: NSE EPR.
Notes 1. DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Organisation.
2. Above table reports premium turnover for Options buy and sell value
3. Above table reports notional value for open interest contracts.
3. Open interest is the daily average for the period.
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Market Pulse
Table 62: Category-wise turnover and open interest (OI) in equity derivatives in FY24TD and FY23
Derivatives Markets FY24TD FY23
OI OI
Buy Value Sell Value OI Buy Value Sell Value OI
Category (No of (No of
contracts) contracts)
Stock Futures 2,29,01,602 2,29,01,602 34,02,981 2,57,588 1,90,72,304 1,90,72,304 29,54,001 1,96,961
Corporates 16,40,986 16,41,080 4,19,227 32,505 13,87,369 13,90,603 3,75,470 25,762
DII 20,01,897 20,58,024 2,742 200 16,55,351 16,54,479 5,734 373
Prop 82,76,477 82,86,936 4,31,744 32,303 66,87,726 67,00,011 3,19,011 20,741
Others 17,40,119 17,38,034 17,32,744 1,31,643 18,32,119 18,30,388 15,49,253 1,05,090
Stock Options 12,51,362 12,51,362 27,18,794 2,06,658 9,32,701 9,32,701 20,77,068 1,37,103
Corporates 42,033 43,531 1,17,611 16,256 36,794 38,636 84,662 10,430
Foreign investors 55,959 56,435 220 16 28,921 29,474 12 4
DII 1,020 2,650 30 74 1,036 2,592 3 10
Prop 7,49,104 7,51,394 8,88,570 75,945 5,22,853 5,26,318 6,27,054 46,457
Others 26,883 27,507 2,25,878 26,341 47,346 49,113 2,00,453 21,080
Index Futures 66,91,401 66,91,401 4,14,956 37,105 95,20,685 95,20,685 3,82,329 34,428
Corporates 7,77,955 7,68,259 51,451 4,570 9,51,358 9,50,303 56,199 5,094
DII 2,28,355 2,35,713 30 3 2,68,247 2,59,380 66 6
Prop 22,26,231 22,30,643 45,786 3,912 32,44,234 32,36,995 33,954 3,077
Others 4,98,168 4,98,660 2,13,238 19,788 9,18,119 9,15,762 1,78,621 16,036
Index Options 1,26,91,884 1,26,91,884 1,27,77,573 11,03,810 1,09,55,556 1,09,55,556 77,76,110 7,00,325
Corporates 3,33,487 3,38,616 11,82,450 1,46,473 3,53,695 3,59,874 7,54,909 95,088
Foreign investors 11,04,903 11,19,115 4,116 432 10,35,012 10,37,510 817 131
DII 9,471 9,048 4,685 336 9,496 9,924 3,742 188
Individual investors 44,71,847 44,25,351 57,53,530 4,43,680 38,65,318 38,29,055 35,30,451 2,86,725
Prop 61,94,594 62,16,670 26,33,337 2,34,165 49,25,315 49,45,786 15,86,191 1,53,430
Others 5,77,583 5,83,083 31,99,455 2,78,724 7,66,720 7,73,407 19,00,000 1,64,763
Source: NSE EPR.
Notes 1. DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Organisation.
2. Above table reports premium turnover for Options buy and sell value and notional value for open interest contracts.
3. Open interest is presented as the average for the period.
4. Data for FY24TD is as of February 2024.
175/239
Market Pulse
Currency derivatives trading registered a significant decline in February 2024:

Currency derivatives turnover declined MoM in Feb-24, with currency futures and options
declining 24.3% MoM and 25% MoM respectively. Prop. traders accounted for a
significant portion of the decline for both futures and options turnover. While they
accounted for 68.6% of the decline in currency options premium turnover, they
accounted for a higher 78.3% decline in currency futures turnover. Individual investors
were the second highest contributors to the overall currency derivatives turnover,
however, they accounted for 19.9% and 18.6% MoM decline in buy and sell in currency
futures turnover and a slightly higher 23.8% and 21.4% MoM decline in buy and sell
premium turnover in currency options.
Table 63: Category-wise turnover in currency derivatives in last three months (Dec’23-Feb’24)
Currency Derivatives Feb-24 Jan-24 Dec-23
Buy Value Sell Value Buy Value Sell Value Buy Value Sell Value
Category
FUTCUR 4,64,005 4,64,005 6,12,806 6,12,806 6,10,933 6,10,933
Corporates 34,914 35,707 41,934 41,361 33,021 32,474
Foreign investors 49,520 51,710 47,386 49,674 48,427 48,997
DII 6,071 6,040 6,296 6,598 6,253 6,637
Individual investors 74,368 69,750 92,876 85,734 90,249 87,210
Prop 2,89,268 2,91,526 4,04,063 4,09,720 4,17,708 4,20,575
Others 9,864 9,273 20,251 19,718 15,276 15,040
OPTCUR 1,698 1,698 2,265 2,265 1,957 1,957
Corporates 66 57 104 93 69 73
Foreign investors 97 79 120 106 108 78
DII 0 0 0 0 1 0
Individual investors 321 356 421 453 407 458
Prop 1,162 1,150 1,551 1,540 1,319 1,291
Others 52 56 68 73 52 58
Source: NSE EPR.
Notes: 1. DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Organisation.
2. Above table reports premium turnover for Options contracts.
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Market Pulse
Table 64: Category-wise trading turnover in currency derivatives during FY24TD and FY23
Currency Derivatives FY24TD FY23
Buy Value Sell Value Buy Value Sell Value

Category
(Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr)
FUTCUR 66,06,928 66,06,928 1,01,15,658 1,01,15,658
Corporates 3,75,807 3,72,536 5,48,319 5,36,980
Foreign investors 5,60,162 5,71,080 9,38,184 9,95,634
DII 65,665 66,476 87,271 87,748
Individual investors 10,25,280 10,15,124 15,29,491 15,30,766
Prop 44,16,723 44,21,551 67,71,952 67,25,429
Others 1,63,291 1,60,161 2,40,440 2,39,101
OPTCUR 28,251 28,251 47,540 47,540
Corporates 1,013 1,062 1,909 2,039
Foreign investors 1,380 1,072 2,262 1,680
DII 15 0 48 2
Individual investors 6,148 6,411 10,818 10,778
Prop 18,730 18,688 31,320 31,849
Others 966 1,018 1,182 1,193
Source: NSE EPR.
Notes: DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Organisation.
3. Above table reports premium turnover for Options contracts.
Interest rate futures turnover declined for four months sequentially: Interest rate
futures turnover registered a month-on-month decline for four months in a row,
contracting 8.6% MoM in the month of Feb-24 to Rs 1,808 crore, with corporates
contributing to 60.3% and 52.3% on the buy and sell side respectively. While corporates’
turnover on the sell side declined 9.2% MoM, it increased 14.2% MoM on the buy side.
Prop. turnover accounting for 26.5% of the overall interest futures turnover in February,
exhibited a significant decline both on buy (-46.9% MoM) and sell (-18.3% MoM) side. In
the current fiscal, the prop. traders accounted for 50.5% of buy turnover and 48.2% of
sell turnover (as on February 29th, 2024), while foreign investors and DIIs’ participation
remained relatively smaller.
Table 65: Category-wise trading turnover in interest rate derivatives in last three months (Dec’23-Feb’24)
Interest rate derivatives Feb-24 Jan-24 Dec-23
Category
Futures 1,808 1,808 1,978 1,978 2,169 2,169

Corporates 1,089 946 954 1,042 1,508 983
Foreign investors 4 4 4 4 5 5
DII 5 5 35 30 25 -
Prop 392 567 739 694 444 1,037
Others 8 8 8 8 8 8
Source: NSE EPR.
Notes: DII – Domestic Institutional Investors, Banks, Insurance companies, Mutual Funds, NBFCs, Domestic Venture Capital Funds, AIFs, PMS clients and New Pension
Organisation; There were no trades for options contracts during the period.
177/239
Market Pulse
Table 66: Category-wise trading turnover in interest rate derivatives during FY24TD and FY23
Interest rate derivatives FY24TD FY 23
Category
(Rs Cr) (Rs Cr) (Rs Cr) (Rs Cr)
Futures 28,053 28,053 26,296 26,296
Corporates 11,542 12,502 8,733 10,125
Foreign investors 63 63 228 233
DII 321 291 1,221 1,405
Individual investors 1,910 1,622 1,403 1,224
Prop 14,153 13,516 14,623 13,229
Others 64 59 88 79
Source: NSE EPR.
Organisation.
2. There were no trades for options contracts.
Prop turnover in commodity options expanded MoM in February 2024: While prop.
turnover in commodity options showcased an increase of 44.5% MoM in terms of buy and
sell premium turnover in Feb-24, their turnover in commodity futures exhibited a decline
of 33.9% and 32.1% in buy and sell turnover respectively, resulting in the overall
commodity futures turnover dropping by 41.5% MoM to Rs 18.6 crore while commodity
options premium turnover expanded by 42.2% MoM to Rs 161 crore. The share of
individuals in buy and sell premium traded value in commodity options was balanced in
Feb’24, however, they accounted for a higher share (1.5x) in commodity futures buy
notional turnover as compared to sell notional turnover. Prop. traders, however, continue
to hold dominant position in commodity derivatives segment.
Table 67: Category-wise trading turnover in commodity derivatives in last three months (Dec’23-Feb’24)
Commodity Derivatives Feb-24 Jan-24 Dec-23
Category
(Rs Lakh) (Rs Lakh) (Rs Lakh) (Rs Lakh) (Rs Lakh) (Rs Lakh)
Futures 1,859 1,859 3,177 3,177 3,260 3,260
Corporates - - - - - -
Foreign investors - - - 13 - -
DII - - - - - -
Prop 1,726 1,764 2,609 2,596 2,977 2,932
Others 26 23 82 90 25 22
Options 16,070 16,070 11,301 11,301 5,756 5,756
Corporates 23 23 208 209 121 121
Foreign investors - - 2 2 - -
DII - - - - - -
Individual investors 1,725 1,729 1,144 1,145 440 433
Prop 14,259 14,255 9,866 9,866 4,862 4,866
Others 63 62 81 80 333 335
Source: NSE EPR.
Organisation.
2. Above table reports premium turnover for options contracts.
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Market Pulse
Table 68: Category-wise turnover in commodity derivatives during FY24TD and FY23
Commodity Derivatives FY24TD FY23
Category
(Rs Lakh) (Rs Lakh) (Rs Lakh) (Rs Lakh)
Futures 5,40,944 5,40,944 1,409 1,409
Corporates 13,843 13,849 349 349
Foreign investors 1,401 1,312 - -
DII 546 547 - -
Individual investors 72,388 72,295 - -
Prop 4,47,130 4,47,246 707 702
Others 5,637 5,695 353 358
Options 38,606 38,606 11,231 11,231
Corporates 445 431 978 1,194
Foreign investors 2 2 - -
DII - - 1 1
Individual investors 3,578 3,572 637 640
Prop 34,011 34,021 9,383 9,065
Others 569 581 23 33
Source: NSE EPR.
Organisation.
2. Above table reports premium turnover for options contracts.
179/239
Market Pulse
Category-wise participation in turnover across segments

This section gives a detailed analysis on client-wise participation in total trading activity
across all segments at NSE. The clients are broadly classified into six categories, viz.
Foreign investors, Domestic institutional investors (DIIs), Corporates, Proprietary traders,
Individual investors, and Others. The Individual investors category includes individual
domestic investors, NRIs, sole proprietorship firms and HUFs. The category Others
includes Partnership Firms/LLP, Trust / Society, Depository Receipts, Statutory Bodies,
etc. which are not included in any other categories mentioned above.
Share of prop turnover in CM segment increased further in February 2024: The share
of trading activity by proprietary traders’ turnover in CM segment expanded further by
97bps MoM to touch 29.8% in the month of Feb’24 – the highest monthly share since
Apr’19. Their share in the current fiscal (as on February 29 th, 2024) expanded 104bps YoY
to touch a 19-year high of 28.2%. The share of individual investors and DIIs’ turnover, on
the other hand, contracted further by 78bps and 61bps MoM during the month to touch
36.5% and 9.7% respectively. While the share of prop trading in the current fiscal (as on
February 29th, 2024) expanded is at a 19-year high at 28.2%, the share of individual
investors at 35.8% in the current fiscal is the lowest of last eight years. Along with
individual investors, foreign investor and DII investors also witnessed contraction in their
respective shares this year, which was offset by significant improvement in corporates’
share, in addition to prop trading share, which touched a 5-year high at 5.7%.
Foreign investors’ share, which had fallen to 11.5% in FY21 – the lowest since FY04,
showcased a steady rise each year post FY21. The overall share for FY24 reached 15.3%
as of end of November before moderating to 14.5% as on end of February 2024. DIIs’s
share, which had fallen to 7.5% in FY21 due to individual investors shifting to direct
participation in the secondary markets, surpassed 11.5% in FY23 – the highest share for
a fiscal year. Their share in the current fiscal year (as on February 29 th, 2024), however,
was slightly lower at 11% of the overall capital market segment.
Table 69: Share of client participation in NSE’s CM segment (%)

MoM Change Apr-23 to Apr-22 to YoY Change
Client category Feb-24 Jan-24 FY23 CY24TD
(bps) Feb-24 Feb-23 (bps)
Cash Segment
Corporates 5.8 5.9 (9) 5.7 4.2 149 4.2 5.8
DIIs 9.7 10.3 (61) 11.0 11.4 (43) 11.5 10.0

Foreign investors 13.3 12.9 39 14.5 15.0 (56) 15.1 13.1
Individual investors 36.5 37.3 (78) 35.8 36.8 (97) 36.5 36.9
Prop 29.8 28.8 97 28.2 27.2 104 27.2 29.3

Others 4.9 4.8 11 4.9 5.5 (57) 5.5 4.8
Source: NSE EPR.
Notes: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., Foreign
investors: Foreign Institutional Investors include FPIs, FDIs, Foreign VC Funds, OCB and Foreign Nationals etc., Prop traders: Proprietary Traders, Individual investors:
individual domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts and Statutory Bodies, etc.
3. Above data represents share in gross turnover i.e., buy-side turnover + sell-side turnover.
180/239
Market Pulse
Figure 214: Trends in share of client participation in NSE’s CM segment (%)
Corporates DIIs Foreign investors Individual investors Prop Others
100%
6.1 4.9
90%
80% 28.2
42.5
70%
60%
50% 35.8
40%
36.6
30%
14.5
20%
10% 11.0
2.1
6.8 5.7
0%
FY04
FY03
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Notes: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., Foreign investors:
Foreign Institutional Investors include FPIs, FDIs, Foreign VC Funds, OCB and Foreign Nationals etc., Prop traders: Proprietary Traders, Individual investors: individual
domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts and Statutory Bodies, etc. Figures in
brackets indicate negative numbers.
2. Data for FY24 is as of February 2024.
Figure 215: Trends in client category-wise turnover in NSE’s CM segment

Rs lakh Corporates DIIs Foreign investors Individual investors Prop Others
crore
400 365
331
350
308
300 266
250
200 180
159
145
150
101
83 87 85
100 71 72
55 56 54 56
31 39
50 12
22 23
-
FY09
FY18
FY03
FY04
FY05
FY06
FY07
FY08
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

2. Above data represents gross turnover i.e., buy-side turnover + sell-side turnover.
181/239
Market Pulse
Prop turnover in equity derivatives has exhibited rising trend in the last four years:
The share of turnover expanded 694bps YoY in FY24 (Apr-23 to Feb-24) to touch 59.6%,
rising consistently for the last four fiscal years. The rise in the share of prop. traders were
offset by decline in the share of individuals, foreign investors, and corporates. On a MoM
basis, while the share of foreign investors and prop. traders increased, the share of
individual investors and corporates dropped. Notably, the share of individual investors in
equity derivatives segment in the current fiscal is the lowest in last eight years, while that
of foreign investors is the lowest in the last 20 years.
Barring stock futures, individual investors have been active across all products in the
equity derivatives segment, with their share in overall derivatives turnover remaining
fairly steady at 26.3% in FY24 (Apr-23 to Feb-24). They have over a 35% share in Index
options premium turnover, followed by close to 30% each in index futures and stock
options (premium), while that in stock futures is relatively lower at nearly 16%. In
contrast, FPIs have been more active in futures contracts, especially stock futures than
in options contracts.
There was a notable rise in the participation of individual investors in the equity
derivatives segment between FY16-FY21, which aligned with their increased trading
activity in the capital market segment during the same period. While their share of equity
derivatives turnover grew nearly six percentage points during this period, it had been on
a consistently declining trend for the last three financial years. Conversely, the share of
proprietary traders exhibited consistency with an upward trend since the end of FY20,
rising 26 percentage points to nearly 60% of the total turnover in equity derivatives
currently.
Table 70: Share of client participation in Equity Derivatives segment of NSE (%)
MoM chg Apr-23 to Apr-22 to YoY chg
Equity Derivatives (Notional Turnover)
Corporates 4.2 4.4 (16) 3.8 4.8 (95) 4.7 4.3
DIIs 0.1 0.1 (1) 0.1 0.1 (2) 0.1 0.1
Individual investors 24.6 25.1 (52) 26.3 27.9 (158) 27.7 24.8
Prop 60.2 59.8 40 59.6 52.7 694 53.1 60.0
Others 3.9 4.0 (5) 4.3 7.2 (289) 7.0 4.0

Source: NSE EPR.
domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts and Statutory Bodies, etc.
3. Above data represents share in gross notional turnover i.e., buy-side turnover + sell-side turnover.
182/239
Market Pulse
Figure 216: Trends in share of client participation in Equity Derivatives (Notional Turnover) at NSE (%)
100%
4.9 4.3
90%
80%
70% 46.2
59.6
60%
50%
40%
30% 33.5
26.3
20%
10% 0.2
10.4 5.9
0.1
0%
FY05
FY21
FY03
FY04
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY22
FY23
FY24
Source: NSE EPR.
3. Above data represents share in gross notional turnover i.e., buy-side notional turnover + sell-side notional turnover.
Figure 217: Trends in client category-wise turnover in Equity derivatives (Notional Turnover) at NSE
crore
1,60,000
1,45,419
1,40,000
1,20,000
1,00,000
76,447
80,000
60,000
33,905
40,000
12,872
20,000
4,752 6,891
9 43 51 96 147 262 220 353 585 627 631 764 1,112 1,297 1,887 3,300
-
FY17
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

3. Above data represents gross notional turnover i.e., buy-side notional turnover + sell-side notional turnover.
183/239
Market Pulse
Table 71: Share of client participation in Index Futures of NSE (%)

Index Futures
Corporates 11.9 12.4 (42) 11.6 9.9 167 10.0 12.2
DIIs 2.9 3.3 (41) 3.5 2.8 70 2.8 3.1
Foreign investors 12.3 13.6 (125) 13.8 11.6 222 11.8 12.9
Individual investors 30.9 29.9 95 30.4 31.8 (145) 31.7 30.4
Prop 35.0 33.5 150 33.3 34.2 (85) 34.0 34.2
Others 7.0 7.3 (37) 7.4 9.7 (229) 9.6 7.2

Source: NSE EPR.
Figure 218: Trends in share of client participation in Index Futures at NSE (%)

100%
4.9 7.4
90%
80%
33.3
43.5
70%
60%
50%
30.4
40%
32.2
30%
20% 13.8
7.7
3.5
10%
11.6
0%
FY15
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

184/239
Market Pulse
Figure 219: Trends in client category-wise turnover in Index Futures at NSE

crore
200 190
181
180 169
160
134 134
140
111
120
96
91
100 87 87
79 82
76
71 72
80
62
60 51 51
40 30
15
11
20
1
-
FY04
FY15
FY03
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Table 72: Share of client participation in Stock Futures of NSE (%)

Stock Futures
Corporates 7.6 6.8 78 7.2 7.2 (6) 7.2 7.2
DIIs 8.7 8.1 54 8.9 8.5 37 8.5 8.4
Individual investors 17.3 17.5 (23) 16.6 15.6 98 15.6 17.4
Prop 36.2 37.6 (144) 36.2 35.1 107 35.1 36.9
Others 6.1 7.7 (162) 7.6 9.8 (226) 9.8 6.9

Source: NSE EPR.
185/239
Market Pulse
Figure 220: Trends in share of client participation in Stock Futures at NSE (%)
100%
5.1 7.6
90%
80%
36.2
70% 50.2
60%
50%
16.6
40%
30% 31.3 23.6

20%
10% 8.9
0.1
8.8 7.2
0%
FY10
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Note: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., Foreign investors:
Foreign Institutional Investors include FPIs, FDIs, Foreign VC Funds, OCB, and Foreign Nationals etc., Prop traders: Proprietary Traders, Individual investors: individual
Figure 221: Trends in client category-wise turnover in Stock Futures at NSE

crore
500
458
450 421
381
400 362
350 312
323
297
300
250 223
200 166
151 157
150 110
104 99
76 81 84
100 70
56
26 30
50
6
-
FY09
FY03
FY04
FY05
FY06
FY07
FY08
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

186/239
Market Pulse
Table 73: Share of client participation in Index Options of NSE (%)

Index Options (Premium Turnover)
Corporates 2.5 2.5 (2) 2.6 3.3 (63) 3.3 2.5
DIIs 0.1 0.1 (1) 0.1 0.1 (2) 0.1 0.1
Prop 47.3 48.2 (97) 48.9 44.6 434 45.1 47.8
Others 3.9 4.0 (14) 4.6 7.2 (265) 7.1 4.0
Source: NSE EPR.
3. Above data represents share in gross premium turnover i.e., buy-side premium turnover + sell-side premium turnover.
Figure 222: Trends in share of client participation in Index Options (premium turnover) at NSE (%)

100%
3.6 4.6
90%
80% 32.3
70% 48.9
60%
50%
36.8
40%
30% 35.1
0.5
20%
10% 22.4
8.8
0.1
0%
FY11
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

187/239
Market Pulse
Figure 223: Trends in client category-wise turnover in Index Options (premium turnover) at NSE
crore
300
254
250
219
200
150
117
100
53
50
22
7 7 9 13
0 0 0 0 0 1 2 2 4 5 4 5 5
-
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Table 74: Share of client participation in Stock Options of NSE (%)

Stock Options (Premium Turnover)
Corporates 3.3 3.2 4 3.4 4.1 (65) 4.0 3.2
DIIs 0.1 0.2 (2) 0.1 0.2 (5) 0.2 0.2
Foreign investors 6.0 5.1 90 4.5 3.1 141 3.1 5.6
Prop 59.6 61.8 (216) 60.0 56.1 383 56.2 60.7
Others 2.0 1.9 15 2.2 5.3 (309) 5.2 1.9

Source: NSE EPR.
188/239
Market Pulse
Figure 224: Trends in share of client participation in Stock Options (Premium Turnover) at NSE (%)
100% 2.2
4.2
90%
80%
39.7
70%
60.0
60%
50%
40%
37.6
30%
29.8
20%
0.2
10%
14.1 4.5
0.1
0%
FY16
FY23
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY17
FY18
FY19
FY20
FY21
FY22
FY24
Source: NSE EPR.
Figure 225: Trends in client category-wise turnover in Stock Options (Premium Turnover) at NSE
crore
30
25.0
25
20.8
20 18.7
15
11.6
10
4.6
4.0
5 3.0
1.9
0.9 1.2 1.2
0.3 0.3 0.4 0.4 0.7
0.1 0.2 0.1 0.1 0.1 0.2
-
FY12
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

189/239
Market Pulse
Share of proprietary traders contracted in currency derivatives in FY24: The

proportion of proprietary traders’ turnover in currency derivatives based on notional
turnover dropped in FY24 (Apr-23 to Feb-24). Their share has decreased 171bps YoY to
62.1% in the current fiscal (as on February 29th, 2024), as compared to the corresponding
period in the previous fiscal year. This decline can be primarily attributed to their reduced
participation in currency options contracts. Trading by individual investors, however, has
been declining gradually for the last two years, with their shares falling by nearly 441bps
(as on February 29th, 2024) since the end of FY22 – the year it recorded the highest share.
Corporate participation in currency derivatives, on the other hand, has been on a declining
trend in the currency derivatives segment post FY14, reaching the all-time lowest share
of 3.8% of the overall notional turnover in the current fiscal year.
Table 75: Share of client participation in Currency Derivatives segment of NSE (%)
Currency Derivatives (Notional Turnover)

Corporates 3.9 3.8 6 3.8 4.3 (48) 4.2 3.8
DIIs 0.2 0.2 4 0.2 0.3 (5) 0.3 0.2
Prop 62.3 64.1 (184) 62.1 63.8 (171) 63.6 63.3
Others 8.3 8.1 27 7.8 4.7 310 5.1 8.2
Source: NSE EPR.
Figure 226: Trends in share of client participation in Currency Derivatives (Notional Turnover) at NSE (%)
100% 1.3
7.8
90%
80%
70% 59.5
60% 62.1
50%
40%
30% 20.5
20% 0.0 21.1
10% 18.7
5.0
0% 3.8
FY17
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

190/239
Market Pulse
Figure 227: Trends in client category-wise turnover in Currency Derivatives (Notional Turnover) at NSE
crore
800 762
700 647
600
500
424
400
300 242
193
170
200
93 105 90 97 101
69 80
100 60
36
3
-
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Table 76: Share of client participation in Currency Futures of NSE (%)

Currency Futures
Corporates 7.6 6.8 81 5.7 5.3 32 5.4 7.1
DIIs 1.3 1.1 25 1.0 0.9 13 0.9 1.2
Individual investors 15.5 14.6 96 15.4 15.1 34 15.1 15.0
Prop 62.6 66.4 (381) 66.9 66.8 13 66.7 64.8
Others 2.1 3.3 (120) 2.4 2.3 16 2.4 2.7
Source: NSE EPR. Note:
191/239
Market Pulse
Figure 228: Trends in share of client participation in Currency Futures at NSE (%)

100% 1.3 2.4
90%
80%
70% 59.5
66.9
60%
50%
40%
30% 20.5
15.4
20% 0.0
10% 18.7 8.6
5.7
0%
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Figure 229: Trends in client category-wise turnover in Currency Futures at NSE

crore
250
202
200
141
150 132
114
93 96
100
75
66 68
59 55
50 52
45
50 36
3
0
FY15
FY09
FY10
FY11
FY12
FY13
FY14
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

192/239
Market Pulse
Table 77: Share of client participation in Currency Options of NSE (%)

Currency Options (Premium Turnover)
Corporates 3.6 4.4 (73) 3.7 4.2 (56) 4.2 4.0
DIIs 0.0 0.0 (1) 0.0 0.1 (3) 0.1 0.0
Prop 68.1 68.2 (13) 66.2 66.5 (26) 66.4 68.2
Others 3.2 3.1 5 3.5 2.2 127 2.5 3.1

Source: NSE EPR.
Figure 230: Trends in share of client participation in Currency Options (Premium Turnover) at NSE (%)

100% 1.2 3.5
90%
80%
70% 58.0
66.2
60%
50%
40%
16.5
30%
0.0
20% 22.2
10% 24.3
4.3
0%
FY13
FY11
FY12
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.

2. Data for FY24 is as February 2024.
193/239
Market Pulse
Figure 231: Trends in client category-wise turnover in Currency Options (Premium Turnover) at NSE
Rs thousand Corporates DIIs Foreign investors Individual investors Prop Others
crore
100 95
90
80
70
57
60
50
50
40
29 30
27
30
20
20 14 15 14 15
12
6
10 2
-
FY16
FY11
FY12
FY13
FY14
FY15
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Share of corporates turnover in IRFs witnessed substantial expansion in FY24:

Corporates that account for a dominant position in IRFs witnessed substantial YoY
expansion in the current fiscal from 35.9% in FY23 to 42.9% in FY24 (Apr-23 to Feb-24).
Besides corporates, individuals that accounted for only 6.3% of the IRF segment also
witnessed expansion in their share of turnover in the current fiscal. Conversely, trading
by DIIs and prop. traders exhibited a notable moderation of 453bps and 479bps YoY
respectively in FY24. Corporates contributed more than half of the overall turnover for the
last three consecutive months and 42.9% in the current fiscal, trailing behind prop.
traders which contributed 49.3% of the market turnover during the current fiscal year.
Table 78: Share of client participation in Interest Rate Futures of NSE (%)
Interest Rate Futures

Corporates 56.3 50.5 583 42.9 33.9 896 35.9 53.2
DIIs 0.3 1.6 (137) 1.1 5.6 (453) 5.0 1.0
Prop 26.5 36.2 (970) 49.3 54.1 (479) 53.0 31.6
Others 0.4 0.4 4 0.2 0.3 (8) 0.3 0.4
Source: NSE EPR.
Foreign Institutional Investors include FPIs, FDIs, Foreign VC Funds , OCB and Foreign Nationals etc., Prop traders: Proprietary Traders, Individual investors: individual
domestic investors, NRIs, sole proprietorsh4.ip firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts and Statutory Bodies, etc.
194/239
Market Pulse
Figure 232: Trends in share of client participation in Interest Rate Futures at NSE (%)
100% 1.3
90%
80%
49.3
70%
60% 73.9
50%
6.3
40%
30%
2.1
20% 2.3 42.9
10% 20.4
0%
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Source: NSE EPR.
Figure 233: Trends in client category-wise turnover in Interest Rate Futures at NSE
Rs thousand Corporates DIIs Foreign investors Individual investors Prop Others
crore
1,200
1,053
1,000
843
800
704
642
616
600
491
400
193
200
60 53 53 56
-
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Source: NSE EPR. Note:
195/239
Market Pulse
Prop traders continued to be major players in commodity derivatives: Prop. traders

have held a majority share in NSE’s commodity derivatives segment in the last four years.
Their dominance has been rising steadily during this period from 45.3% in FY20 to 87.6%
in FY24 (as on February 29 th, 2024). Individual investors, on the other hand, account for
a smaller share as compared to prop. traders with slightly over 10% share of the overall
turnover, followed by corporates at 1.1%. Notably, individual investors have a slightly
higher participation in commodity futures as compared to commodity options in the
current fiscal year.
Table 79: Share of client participation in Commodity derivatives segment of NSE (%)
Commodity Futures
Corporates 0.0 0.0 - 2.6 23.2 (2,066) 24.8 0.0
DIIs 0.0 0.0 - 0.1 0.0 10 0.0 0.0
Individual investors 4.8 15.2 (1,036) 13.4 0.0 1,337 0.0 11.4
Prop 93.9 81.9 1,196 82.7 50.0 3,267 50.0 86.3
Others 1.3 2.7 (139) 1.0 26.8 (2,573) 25.2 2.2
Commodity Options (Premium Turnover)
Corporates 0.1 1.8 (170) 1.1 9.5 (838) 9.7 0.8
DIIs 0.0 0.0 - 0.0 0.0 (1) 0.0 0.0
Prop 88.7 87.3 142 88.1 81.6 648 82.1 88.1
Others 0.4 0.7 (32) 1.5 2.7 (123) 2.5 0.5
Commodity Derivatives (Notional Turnover)
Corporates 0.2 1.7 (150) 1.1 9.2 (809) 9.1 0.7
DIIs 0.0 0.0 - 0.0 0.0 0 0.0 0.0
Individual investors 10.1 11.4 (130) 10.4 5.8 458 5.5 10.6
Prop 89.1 86.1 304 87.6 82.9 465 83.1 88.0
Others 0.6 0.8 (24) 0.9 2.1 (116) 2.2 0.7
Source: NSE EPR.
Note: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., Foreign
investors: Foreign Institutional Investors include FPIs, FDIs, Foreign VC Funds, OCB and Foreign Nationals etc., Prop traders: Proprietary Traders, Individual investors:
individual domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society, Depository Receipts and Statutory Bodies, etc.
196/239
Market Pulse
Figure 234: Trends in share of client participation in Commodity Derivatives (Notional Turnover) at NSE (%)
100% 0.2 0.2 2.2 0.9
8.1 7.6
90%
80%
45.3
70%
60% 64.6
83.9 83.1
78.0 87.6
50% 6.5
40%
30%
48.0
20% 15.9
10% 8.0 4.6 5.5

11.3 9.8 9.1 10.4
7.9
0% 1.1
FY19 FY20 FY21 FY22 FY23 FY24
Source: NSE EPR.
Figure 235: Trends in client category-wise turnover in Commodity Derivatives (Notional Turnover) at NSE
Rs crore Corporates DIIs Foreign investors Individual investors Prop Others
3,00,000
2,59,688
2,50,000
2,00,000
1,50,000
1,00,000
55,678
39,490 35,510
50,000
12,725
6,888
-
Source: NSE EPR.
Note: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., foreign investors:
domestic investors, NRIs, sole proprietorship firms and HUFs, Others: Partnership Firms/LLP, Trust / Society and Statutory Bodies, etc.
197/239
Market Pulse
Figure 236: Trends in share of client participation in Commodity Futures at NSE (%)
100% 0.2 0.2 0.3 1.0
90% 16.6
25.2
80%
45.3
70%
60%
83.9 82.7
50% 6.5 95.7

50.0
81.2
40%
30%
48.0
20%
8.0 24.8
10% 13.4
0.5
7.9 0.5
0% 3.5 1.7 2.6
Source: NSE EPR.
Note: 1. DIIs: Domestic Institutional Investors include Banks, Mutual Funds, Insurance Companies, NBFCs, Domestic VC Funds, AIFs, PMS clients etc., foreign investors:
Figure 237: Trends in client category-wise turnover in Commodity Futures at NSE

14,000
12,725
12,000 10,967 10,819
10,000
8,000
6,888
6,000
4,546
4,000
2,000
28
-
Source: NSE EPR.
198/239
Market Pulse
Figure 238: Trends in share of client participation in Commodity Options (Premium Turnover) at NSE (%)
100% 2.5 1.5
9.3 5.7
90%
80%
70%
60% 57.2
73.8 82.1
88.1
50%
40%
30%
20.8
20%
4.8
5.7
10%
12.7 15.7
9.7 9.3
0% 1.1
FY21 FY22 FY23 FY24
Source: NSE EPR.
Figure 239: Trends in client category-wise turnover in Commodity Options (Premium Turnover) at NSE
900
772
800
700
600 568
500
400
300 261
225
200
100
-
FY21 FY22 FY23 FY24
Source: NSE EPR.
199/239
Market Pulse
Distribution of turnover by modes of trading

Colo trades comprise a dominant share in CM and equity derivatives segment:
Colocation, primarily used for proprietary trading, that comprised 34.2% in CM segment
and 61.4% in equity derivatives segment in the FY24 (Apr-23 to Feb-24), showcased a
contrasting trend in the last two years. While its share in capital market segment
witnessed a slight contraction in the last two years from its peak of 34.8% in FY22, their
share in equity derivatives surged nearly four percentage points during this period to
61.4% in FY24 (as on February 29th, 2024). This aligned with the growing participation of
proprietary traders in the equity derivatives segment. Notably, the share of colocation
trades has been consistently rising MoM in the last three months reaching a 20-month
high in February.
There has been a significant shift in the trading modes used by investors in various
segments, especially in cash and equity derivatives segment of NSE over the last two
decades. Investors are increasingly adopting different modes such as Internet-based
Trading (IBT), Direct Market Access (DMA), Co-location (Colo), Algo-trading (Algo), mobile
phones and Smart-order Routing (SOR). Individual investors that predominantly use IBT
and mobile for trading constitute 28.1% and 26% in NSE’s capital market (CM) segment
and equity derivatives segment respectively in the current fiscal (as on February 29 th,
2024).
Table 80: Share of different modes of trading in Capital Market segment of NSE (%)
MoM change Apr-23 to Apr-22 to YoY change
Mode Feb-24 Jan-24 FY23 CY24TD
Non Algo 16.8 17.8 (97) 18.5 18.4 15 18.6 17.3
IBT 8.5 8.6 (8) 8.5 9.2 (80) 9.1 8.5
SOR 0.8 0.8 (0) 0.9 1.0 (12) 1.0 0.8
Mobile 20.7 21.1 (41) 19.6 19.9 (26) 19.7 20.9
Colo 36.1 34.9 120 34.2 34.2 (3) 34.1 35.5
Algo 10.9 11.3 (35) 12.6 14.5 (191) 14.6 11.1
DMA 6.2 5.6 62 5.7 2.7 297 2.8 5.9

Source: NSE EPR. Note: The above figures have been computed on the basis of gross turnover.
Note: IBT- Internet-based Trades, SOR – Smart Order Routing, Colo – Colocation, DMA – Direct Market Access. The above figures are based on gross turnover.
200/239
Market Pulse
Figure 240: Trends in share of different modes of trading in Capital Market segment at NSE (%)
Non Algo IBT SOR Mobile Colo Algo DMA
100%
5.7
90%
12.6
80%
70%
34.2
60%
50% 100.0
40%
19.6
30%
8.5
20%
10% 18.5
0%
FY03
FY10
FY04
FY05
FY06
FY07
FY08
FY09
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Note: 1. IBT- Internet-based Trades, SOR – Smart Order Routing, Colo – Colocation, DMA – Direct Market Access.
2. The above figures have been computed on the basis of gross turnover.
3. FY24 is as of February 2024.
Table 81: Share of different modes of trading in Equity Derivatives segment of NSE (%)
Non Algo 4.8 5.2 (35) 6.6 8.3 (173) 8.3 5.0
IBT 7.8 7.9 (16) 8.6 9.8 (113) 9.7 7.8
SOR - - 0 - - 0 - -
Mobile 16.6 16.9 (35) 17.4 17.2 21 17.2 16.8
Colo 63.8 63.2 62 61.4 58.9 241 59.1 63.5
Algo 2.1 2.0 10 1.3 0.6 72 0.6 2.0
DMA 4.9 4.8 12 4.6 5.1 (49) 5.1 4.9
Source: NSE EPR.
3. Notional turnover considered in case of futures and options.
201/239
Market Pulse
Figure 241: Trends in share of different modes of trading in Equity Derivatives segment at NSE (%)
Non Algo IBT SOR Mobile Colo Algo DMA
100%
4.6
90%
80%
70%
61.4
60%
50% 100.0
40%
30%
17.4
20%
10% 8.6
6.6
0%
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Colo trades comprised a major share of turnover in currency derivatives segment:

Trades through colocation comprised nearly 47% of the turnover in currency derivatives
segment in NSE in FY24 (Apr-23 to Feb-24). While the share of colocation rose YoY
consistently during FY21-FY23, it contracted marginally in the current fiscal year by
140bps from its peak of 48.4% in FY19. The decline in the colocation share in the current
fiscal was in line with the falling share of proprietary turnover in the segment. Algo-based
trades that account for the smallest share in currency derivatives segment exhibited
marginal improvement in their share this fiscal. While the share of internet-based
turnover witnessed steady moderation since FY21, share of mobile phone-based
turnover rose continuously during this period but declined in the current fiscal year.
Table 82: Share of different modes of trading in Currency Derivatives segment of NSE (%)
Non Algo 26.1 26.0 14 26.0 26.1 (7) 26.2 26.0
IBT 8.3 8.3 1 9.4 9.7 (33) 9.7 8.3
SOR 0.0 0.0 (0) 0.0 0.0 0 0.0 0.0
Mobile 9.9 9.7 22 11.4 11.8 (38) 11.8 9.8
Colo 49.4 49.9 (53) 47.0 47.3 (25) 47.2 49.7
Algo 0.2 0.1 10 1.0 0.7 34 0.6 0.2
DMA 6.0 6.0 6 5.2 4.5 69 4.6 6.0
Source: NSE EPR.
202/239
Market Pulse
Figure 242: Trends in share of different modes of trading in Currency Derivatives segment at NSE (%)
Non Algo Algo IBT SOR Colo Mobile DMA
100% 0.0
5.2
90% 11.4
20.8
80%
70%
60% 47.0
50%
40%
74.4
30% 9.4
20%
26.0
10%
0%
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Colocation-based trading activity was relatively limited in IRFs: In contrast to equity

and currency derivatives segment, colocation-based turnover comprised a smaller share
in the overall turnover of interest rate futures. The non-algo mode accounted for a higher
54.3% and 61.3% of the overall turnover in the currency and commodity derivatives
segments in FY24 (as on February 29th, 2024). While colocation comprised 16.3% of the
overall turnover in IRFs followed by internet-based trades at 13.1%, a significant portion
of the trading activity in commodity derivatives is executed through algo and non-algo
modes in FY24 – collectively accounting for 98% of the turnover in commodity derivatives
segment.
Table 83: Share of different modes of trading in Interest Rate Derivatives segment of NSE (%)
Non Algo 42.7 46.4 (371) 54.3 75.1 (2076) 74.2 44.6
IBT 13.9 16.8 (281) 13.1 15.3 (219) 14.8 15.4
SOR - - 0 - - 0 - -
Mobile 5.0 1.3 371 1.7 2.0 (26) 1.9 3.1
Colo 20.0 18.8 117 16.3 1.4 1486 1.3 19.4
Algo - - 0 0.0 0.5 (51) 0.8 -
DMA 18.4 16.7 164 14.5 5.7 886 6.9 17.5

Source: NSE EPR.
203/239
Market Pulse
Figure 243: Trends in share of different modes of trading in Interest Rate Derivatives segment at NSE (%)
Non Algo Algo IBT SOR DMA Colo Mobile
100% 1.7
14.3
90% 16.3
80%
14.5
26.0
70%
60% 13.1
50%
40%
30% 59.4
54.3
20%
10%
0%
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Source: NSE EPR.
Table 84: Share of different modes of trading in Commodity Derivatives segment of NSE (%)
Non Algo 69.2 57.8 1138 61.3 22.3 3904 23.9 65.1
IBT 0.6 1.6 (92) 1.2 4.7 (342) 4.5 1.0
SOR - - 0 - - 0 - -
Mobile 0.0 0.2 (15) 0.1 0.0 7 0.0 0.1
Colo - - 0 - - 0 - -
Algo 30.1 40.4 (1030) 37.3 73.0 (3568) 71.6 33.8
DMA - - 0 0.0 - 0 - -
Source: NSE EPR.
204/239
Market Pulse
Figure 244: Trends in share of different modes of trading in Commodity Derivatives segment at NSE (%)
Algo Non Algo IBT SOR Mobile DMA
100% 0.9 1.2
4.4 3.9 4.5
12.9
90%
32.7 22.4 24.1 23.9

80%
70%
38.5 61.3
60%
50%
40%
73.2 71.8 71.6
66.4
30%
48.6
20% 37.3
10%
0%
Source: NSE EPR.

205/239
Market Pulse
Individual investors’ activity in NSE’s CM and derivatives segment

Net investments by individual investors strengthened in FY21 and FY22: Direct
participation of individual investors in the Indian stock markets witnessed a remarkable
surge in investments throughout FY21 and FY22 following an 11-year hiatus. The surge
in net inflows was driven by post-pandemic liquidity, limited investment options amidst
declining interest rates and a substantial influx of individual investors into the equity
markets. The total investments made by individual investors during this period amounted
to Rs 2.3 lakh crore. Additionally, the share of individual investors in the overall cash
segment turnover peaked at 45% in FY21. Net investments, however, slowed down in
FY23 to Rs 49,206 crore.
Overall net inflows by individuals in FY24 surpassed FY23 inflows in February: While
net investments started picking up between Aug-23 and Oct-23 by individual investors,
the subsequent months witnessed large outflows by them, which largely offset the
inflows witnessed in the prior months. The momentum in net inflows took a course
reversal in the last two months with an inflow of Rs 61,430 crore, thanks to strong
economic fundamentals, increasing new investor registrations and growing investor
participation in Indian stock market across all client categories. The net flow by individual
investors stood at Rs 56,042 crore in FY24 (April-23 to Feb-24), slightly higher than Rs
49,206 crore recorded in FY23.
Figure 245: Overall net inflows of individual investors in NSE’s CM segment in last eight fiscal years
Rs Cr
Cumulative net inflows by individual investors
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
2,00,000
1,50,000
1,00,000
50,000
-50,000
-1,00,000
Source: NSE EPR. Note: individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs.
206/239
Market Pulse
Figure 246: Annual trend of net inflows of individual investors in NSE’s CM segment
Rs crore
Net inflows by individual investors
2,00,000
1,64,879
1,50,000
1,00,000
68,359
56,042
49,206
50,000
-50,000
-1,00,000
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24TD*
Source: NSE EPR. Note: Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs. FY24TD data is as of February 2024.
Individual investors participation reached all-time high in February 2024: The

individual investors participation in NSE cash market segment had witnessed a
substantial increase post the pandemic, growing from 30.6 lakhs in January 2020 to
nearly four times that figure in the following two years, reaching 1.1 crore by January
2022. However, the number of active investors took a dip, reaching 63.7 lakhs in April
2023—almost half of the January 2022 level. Following April 2023, NSE CM segment
witnessed an increasing trend in individual investor participation, in line with the growth
in new investors registrations during the period.
Remarkably, the investor participation recorded a second consecutive high of 1.5 crore
(+4.2% MoM) active individual investors in NSE cash market segment, breaking previous
month’s record. Similarly, the equity derivatives segment witnessed a further increase in
individual investors’ participation to an all-time high level of 49.1 lakh (+3.8% MoM)
unique investors.
207/239
Market Pulse
Figure 247: Monthly trends of active individual investors participation in NSE cash and equity derivative segments
(In lakhs)
CM Segment FO Segment
160 150.5
140
120
100
80
60 49.1
40
20
Oct-23
Oct-17
Oct-18
Oct-19
Oct-20
Oct-21
Oct-22
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Jun-17
Jun-18
Jun-22
Jun-23
Apr-17
Aug-17
Dec-17
Apr-18
Aug-18
Jun-19
Jun-20
Jun-21
Dec-18
Apr-19
Aug-19
Dec-19
Apr-20
Aug-20
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Source: NSE EPR. Note: Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs. Active investors here are defined as
investors who have traded at least once in the month.
Figure 248: Annual trends of active individual investors participation in NSE cash and equity derivative segments
(In lakhs)
CM Segment FO Segment
350
294.4
300
250
200
150
91.4
100
50
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24TD
Source: NSE EPR. Note: Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs. Active investors here are defined as
investors who have traded at least once in the year. Data for FY24TD is as of February 2024.
Active individual investors in the currency derivatives segment declined in February:

The individual investors participation had been gradually increasing since Jan-17 to reach
its highest level in Nov-22 at 1.2 lakh active individual investors, followed by a 10-month
period when the number individuals trading in the market hovered between 90,000 to 1.2
lakhs. Since Aug-23, participations had been declining for four consecutive months,
reaching 81,304 in Nov-23 – the lowest in two years. While the trend recovered in the
next two months, the segment witnessed a drop in individual investors’ participation in
February to 82,810 (-8.2% MoM).
208/239
Market Pulse
Figure 249: Monthly trend of active individual investors participation in currency derivative segments of NSE
(In thousands)
140
116.3
120
100
82.8
80
60
40
20
0
Oct-17
Feb-18
Oct-18
Feb-19
Oct-19
Feb-20
Oct-20
Feb-21
Oct-21
Feb-22
Oct-22
Feb-23
Oct-23
Feb-24
Jun-17
Jun-18
Jun-19
Apr-17
Aug-17
Dec-17
Apr-18
Aug-18
Dec-18
Apr-19
Aug-19
Jun-20
Jun-22
Jun-23
Dec-19
Apr-20
Aug-20
Jun-21
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Source: NSE EPR. Note: Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs. Active investors here are defined as investors
who have traded at least once in the month.
Figure 250: Annual trend of active individual investors participation in currency derivative segments of NSE
(In thousands)
500
443
450
404
400
350
300
250
200
150
100
50
-
FY18 FY19 FY20 FY21 FY22 FY23 FY24TD
Source: NSE EPR. Note: Individual investors include individual domestic investors, NRIs, sole proprietorship firms and HUFs. Active investors here are defined as investors
who have traded at least once in the year. Data for FY24TD is as of February 2024.
209/239
Market Pulse
Distribution of trading activity by turnover

Two-thirds of the investors traded less than Rs 1 lakh in the cash market in Feb’24:
The month of February saw an increase in the no. of investors but a slight drop in the
turnover. The turnover dropped marginally by 1% MoM to Rs 24.6 lakh crore in Feb’24 as
compared to Rs 24.9 lakh crore in the previous month. The number of investors who
traded in February increased to 1.5 crore (4% MoM jump) as compared to 1.4 crore in the
previous month. Nearly 33% of these investors traded less than a total of Rs 10,000 in
the last month as compared to 32% in the previous month, translating into a total turnover
of Rs 770 crore which was only 0.03% of the total turnover in the month. Another 34% of
these investors had a total turnover in the range of Rs 10,000 to Rs 1 lakh in the month,
followed by 23% trading in the range of Rs 1 lakh to Rs 10 lakh. Around 98% of all
investors who were active last month had traded less than Rs 1 crore on a cumulative
basis during the month, which was only one-tenth of the overall turnover. In fact, out of
1.5 crore people who traded last month, only 26,882 odd investors traded more than Rs
10 crore but accounted for 76% of the total turnover in the month.
Table 85: Distribution of turnover by range in cash market for all investors
Dec-23 Jan-24 Feb-24
Turnover range Total net No. of Total net No. of Total net Share in No. of Share in
turnover unique turnover unique turnover turnover unique investors
(Rs cr) investors (Rs cr) investors (Rs cr) (%) investors (%)
<Rs 10,000 566.6 38,20,239 721.7 45,83,473 769.6 0.03 49,49,804 32.8
Rs 10,000-Rs 1 lakh 8,598.7 44,81,215 9,502.4 48,37,147 9,929.2 0.4 50,93,143 34
Rs 1 lakh - Rs 10 lakh 50,941.7 30,06,615 59,644.6 34,89,938 59,860.5 2.4 35,28,886 23.4
Rs 10 lakh - Rs 1 cr 1,63,767.9 10,74,248 1,93,320.4 12,69,404 1,86,106.8 7.6 12,31,949 8.2
Rs 1 cr – 10 cr 3,02,795.3 2,23,720 3,53,448.8 2,61,130 3,35,547.1 13.7 2,48,204 1.6
>Rs 10 cr 15,52,924.0 23,491 18,74,543.0 28,118 18,65,458.1 75.9 26,882 0.2
Total 20,79,594.2 1,26,29,528 24,91,181 1,44,69,210 24,57,671 100 1,50,78,868 100

Source: NSE EPR.
Three-fourths of total active investors traded less than Rs 10 lakh in equity options in
February: Following the trend in the CM segment, premium turnover in equity options
also remained flat at Rs 16.8 lakh crore in February. However, the number of active
investors in this segment increased 4% MoM to 48.2 lakh in February as compared to 46.5
lakhs in the previous month. Nearly 77% of the total investors traded less than Rs 10 lakh
contributing Rs 32,384 crore or only 2% of the total turnover in February. Twenty three
percent of investors traded greater than Rs 10 lakh but contributed 98% of the total
premium turnover amounting to around Rs 16.5 lakh crore, of which, 14,022 investors
(0.3% of total investors) traded greater than Rs 10 crore leading to 74% share of the total
turnover.
210/239
Market Pulse
Table 86: Distribution of turnover by range in equity options market for all investors
Total Total Total
Turnover range No. of Share in No. of Share in
premium premium No. of unique premium
unique turnover unique investors
turnover turnover investors turnover
investors (%) investors (%)
(Rs cr) (Rs cr) (Rs cr)
<Rs 10,000 127.2 7,82,946 141.5 9,06,641 147.8 0.0 9,73,325 20.2
Rs 10,000-Rs 1 lakh 2,230.9 10,52,473 2,441.3 11,54,194 2,501.3 0.1 11,87,997 24.6
Rs 1 lakh - Rs 10 lakh 26,043.5 13,52,904 28,787.0 14,89,177 29,735.3 1.8 15,35,291 31.8
Rs 10 lakh - Rs 1 cr 1,26,768.4 7,98,398 1,41,364.2 8,89,144 1,45,463.5 8.7 9,17,899 19.0
Rs 1 cr – 10 cr 2,19,318.0 1,69,893 2,51,278.6 1,93,745 2,52,370.0 15.0 1,95,156 4.0
>Rs 10 cr 10,42,353.3 11,784 12,53,867.0 13,884 12,47,442.1 74.4 14,022 0.3
Total 14,16,841.3 41,68,398 16,77,879.5 46,46,785 16,77,660.2 100 48,23,690 100

Source: NSE EPR.
Turnover distribution remained highly skewed in equity futures for total active
investors in Feb’24: The total turnover in equity futures segment marginally increased to
Rs 38 lakh crore in Feb’24 as compared to Rs 37.9 lakh crore in the previous month. The
number of active investors in this segment marginally dropped to 3 lakhs as compared to
3.04 lakh in the previous month. Nearly 89% of the total active investors who traded less
than Rs 10 crore contributed only 6.3% of the total turnover amounting to Rs 2.4 lakh
crore leading to only 11% investors (32,508) contributing to the rest of the 93.7% of the
total turnover. The investors trading in the range of Rs 10 lakh – Rs 1 crore formed the
highest share of 44% among total active investors.
Table 87: Distribution of turnover by range in equity futures market for all investors
Turnover range Total No. of Total No. of Total Share in No. of Share in
turnover unique turnover unique turnover turnover unique investors
(Rs cr) investors (Rs cr) investors (Rs cr) (%) investors (%)
Rs 1 lakh - Rs 10 lakh 368.8 10,146 405.5 10,831 414.9 0.0 11,395 3.8
Rs 10 lakh - Rs 1 cr 26,735.7 1,27,640 28,061.0 1,32,681 27,708.7 0.7 1,31,662 43.8
Rs 1 cr – 10 cr 1,96,821.5 1,17,637 2,18,106.9 1,28,429 2,12,154.6 5.6 1,24,837 41.6
>Rs 10 cr 29,64,704.8 27,990 35,43,285.9 32,468 35,68,992.2 93.7 32,508 10.8
Total 31,88,631 2,83,413 37,89,859 3,04,409 38,09,270 100.0 3,00,402 100.0

Source: NSE EPR. Note: There were no investors below a turnover of Rs 1 lakh.
211/239
Market Pulse
Spatial distribution of individual investor activity in the cash market

Individual investors’ turnover takes a dip in February 2024: The total turnover of
individual investors declined in February, after being at an all-time high in January. Total
turnover within the individual segment declined by 3.4% MoM to reach Rs 17.6 lakh crore
in February 2024, driven by a broad-based fall observed across regions. Turnover in the
Eastern region saw the highest contraction, falling by 6% MoM to Rs 1.5 lakh crore. The
Southern region also followed suit with a 4% MoM decrease, reaching Rs 3.76 lakh crore.
Similarly, the Northern and Western regions experienced a notable decline of 3.6% and
2.2% MoM with turnover reaching Rs 5.7 lakh crore and Rs 6.6 lakh crore, respectively.
…accompanied with a rise in the active investor base: In line with new investor
registrations, the number of active individual investors has also been rising across regions
since November 2023. The active individual investor base rose by 4.3% MoM and crossed
1.5 crore in Feb’24. Region-wise, the Northern India saw an addition of 2.97 lakh active
investors during the month to 54 lakh total investors that traded during the month. This
was followed by Western, Southern and Eastern regions, that saw active investor base
rising to 56.4 lakh, 27.4 lakh and 15.5 lakh respectively in February 2024.
Figure 251: Region-wise distribution of monthly individual investors’ turnover in the cash market
Rs lakh cr
East India North India South India West India
8.0
7.0 6.61
6.0 5.67
5.0
3.76
4.0
3.0
2.0 1.54
1.0
0.0
May-…
May-…
Jul-22
Sep-22
Jul-23
Sep-23
Mar-22
Nov-22
Nov-23
Oct-22
Jan-23
Mar-23
Oct-23
Jan-24
Feb-22
Feb-23
Feb-24
Jun-22
Aug-22
Jun-23
Aug-23
Apr-22
Dec-22
Apr-23
Dec-23
Source: NSE EPR. Note: Individual investors include Individual / Proprietorship firms and HUF
212/239
Market Pulse
Figure 252: Region-wise distribution of individual investors traded in the cash market
lakhs
East India North India South India West India
6.0 5.64
5.40
5.0
4.0
3.0 2.74
2.0 1.55
1.0
0.0
May-…
May-…
Jul-22
Sep-22
Jul-23
Sep-23
Nov-22
Nov-23
Mar-22
Oct-22
Mar-23
Oct-23
Feb-22
Jan-23
Jan-24
Jun-22
Feb-23
Aug-22
Jun-23
Feb-24
Aug-23
Apr-22
Dec-22
Apr-23
Dec-23
Source: NSE EPR. Note: Individual investors include Individual / Proprietorship firms and HUF .
Share of Western region in individual turnover further rose in February 2024: The
distributional pattern of turnover across regions has been getting incrementally more
concentrated to Western and Northern regions. The share of Northern India in overall
individual investors’ turnover saw a marginal fall of 0.1% which has been rising since April
2023, up 3.5 bps since then to 31.8% currently. The share of Western India has been
steadily rising since Nov’23 and stood at 37.1% in the month of February. The share of
Southern and Eastern India, on the other hand, also experienced a marginal fall bring their
share to 21.1% and 8.6% respectively.
The distributional shift has been even starker in terms of active investors: The
distributional pattern of active investors over the past three years has witnessed a notable
shift. The Northern region's share of active investors increased by 51bps to 34.7% in
February 2024, while the Western region saw a decline of 78bps MoM to 36.23%.
Notably, the gap between the two has fallen to a near three-year low of 1.5% now from
12.4% in February 2021. The southern region saw its share remaining fairly steady at
17.6% in February, even though it has been steadily falling for the last three years. The
Eastern region’s share inched up by another 28bps to 10%.
213/239
Market Pulse
Figure 253: Region-wise share of individual investors’ Figure 254: Region-wise share of individual investors
turnover in cash market (%) traded in cash market (%)
East India North India East India North India
South India West India South India West India
45% 45%
40% 37.1% 40% 36.2%
35% 31.8% 35%
34.7%
30% 30%
25% 21.1% 25%
17.6%
20% 20%
15% 15% 10.0%
8.6%
10% 10%
5% 5%
0% 0%
Oct-22
Oct-23
Feb-22
Jun-22
Feb-23
Feb-24
Jun-23
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Oct-22
Oct-23
Feb-22
Feb-23
Feb-24
Jun-22
Apr-22
Aug-22
Jun-23
Dec-22
Apr-23
Aug-23
Dec-23
Source: NSE EPR. Note: Individual investors include Individual / Proprietorship firms and HUF.
Share of top 10 states in the overall individual turnover fall marginally in February
2024: Individual turnover saw a marginal decline in the top 10 states. Total turnover
within the individual segment contracted by 3.2% MoM, reaching Rs 14.1 lakh crore.
Maharashtra and Gujarat maintained their positions in the top three states in terms of
total individual turnover, with turnover of Rs 3.78 lakh crore and Rs 2.17 lakh crore
respectively, whereas Delhi took over Uttar Pradesh’s position in the top three with Rs
1.28 lakh crore while Uttar Pradesh stood with a turnover of 1.27 lakh crore. The share of
top 10 states saw a broad-based marginal decline of less than 1% from January 2024.
…but the active investor base increased: Aligned with the increase in new investor
registrations, the count of active individual investors surged in the top 10 states,
registering a total increase of 3.8% MoM to 1.2 crore in February 2024. Maharashtra
maintained its lead in terms of active investors, experiencing a 2% increase to 30.1 lakh.
Following closely, Gujarat saw an increase of 1% to reach 19.4 lakh active investors.
Additionally, a significant rise was observed in Uttar Pradesh and West Bengal, with an
increase of 7% MoM to 15.4 lakh and 7.3% MoM to 9.2 lakh active total investors,
respectively.
Figure 255: Top 10 states based on turnover of individual investors in the cash market
Rs lakh crore Nov-23 Dec-23 Jan-24 Feb-24
5
4 3.78
4
Turnover of active investors
3 2.17
2
2 1.27 1.28
1.05 1.07 1.04
0.89
1 0.77 0.74
0
Maharashtra Gujarat Uttar Pradesh Delhi West Bengal Karnataka Rajasthan Tamil Nadu Haryana Telangana
Source: NSE EPR.
Note: Individual investors include Individual / Proprietorship firms and HUF. The top ten states are chosen based on last month’s data.
214/239
Market Pulse
Figure 256: Top 10 states based on individual investors traded in the cash market
In lakhs
35
30.09 Nov-23 Dec-23 Jan-24 Feb-24
30
25
no of active investors
19.39
20
15.41
15
9.24 9.24
10 8.37 7.95 7.23
6.33 5.65
5
0
Maharashtra Gujarat Uttar Rajasthan West Bengal Karnataka Delhi Tamil Nadu Madhya Haryana
Pradesh Pradesh
Source: NSE EPR.
Note: Individual investors include Individual / Proprietorship firms and HUF. The top ten states are chosen based on last month’s data.
Contribution of top 10 states in individual turnover increased mildly in February: The

share of total turnover and volume of individual investors in the cash segment continues
to be concentrated in a handful of states. The top 10 states collectively accounted for
80% of the total turnover in February 2024, a marginal increase from the previous
month's 79.8%. Maharashtra's contribution experienced a marginal rise of 13bps to
21.5%, while Gujarat maintained its position with contribution of 11.9% (+35bps MoM).
Delhi takes the third place in the month of February with share of 7.3% (+8bps MoM) as
Uttar Pradesh slips to fourth position with a marginal fall of 16bps to 7.2%. West Bengal
followed closely behind and stood at the fifth place, with a 6% share.
…however, there is a moderate decline in active investor base share: The share of
active individual investors in the cash market remained concentrated in a select few
states. The contribution of the top 10 states experienced a moderate decline to 76.4% in
Feb’24, compared to 76.7% in Jan’24 (vs 77.18% in Dec’23). The share of Maharashtra
saw a marginal decline of 42 bps to 19.3% in Feb’24 along with Gujarat’s share also
declining by 41 bps to 12.5% in February. Uttar Pradesh, Rajasthan, and West Bengal
maintained their positions at the third place with a 9.91% share (+26 bps), fourth with a
5.9% share (+5 bps), and fifth with a 5.9% (17 bps) share respectively among the highest-
contributing states.
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Market Pulse
Figure 257: Top 10 states share based on turnover of individual investors in the cash market
Nov-23 Dec-23 Jan-24 Feb-24

25%
% share of total turnover of active investors
21.51%
20%
in cash market
15%
12.36%
10%
7.23% 7.29%
5.95% 6.08% 5.90%
5.08%
4.39% 4.21%
5%
0%
Maharashtra Gujarat Uttar Pradesh Delhi West Bengal Karnataka Rajasthan Tamil Nadu Haryana Telangana
Source: NSE EPR. Note: Individual investors include Individual / Proprietorship firms and HUF. The top ten states are chosen based on last month’s data.
Figure 258: Top 10 states share based on number of individual investors traded in the cash market

25%
20%
19.34%
% Share of active Investors
in cash Market
15%
12.46%
9.91%
10%
5.94% 5.94%
5.38% 5.11% 4.65%
5% 4.07% 3.63%
0%
Maharashtra Gujarat Uttar Pradesh Rajasthan West Bengal Karnataka Delhi Tamil Madhya Haryana
Nadu Pradesh
Source: NSE EPR. Note: Individual investors include Individual / Proprietorship firms and HUF. The top ten states are chosen based on last month’s data.
The top 10 district individual investors’ turnover falls in February 2024…: The
turnover of individual investors in the top 10 districts by turnover experienced a moderate
decline. The total turnover within the individual segment in these districts declined by
3.65% MoM to Rs 7.97 lakh crore. Mumbai and Delhi maintained their positions as the top
two districts in terms of total individual turnover, with a turnover of Rs 2.3 lakh crore (-
5.0% MoM) and Rs 1.9 lakh crore (-3.3% MoM) respectively. The turnover in Kolkata also
witnessed a 7.2% MoM fall in individual investors’ turnover to Rs 45k crore, while Surat
saw a marginal increase of 68 bps maintaining the turnover at Rs 40k crore. Additionally,
Chenni and Bengaluru experienced notable decline of 4.5% and 4.9% MoM, with
turnovers around Rs 28k crore and 65k crore, respectively.
…as the active investor base grows marginally: In line with new investor registrations,
the number of active individual investors registered a slow growth across all districts, with
216/239
Market Pulse
a total increase of 2.5% MoM to 47.54 lakh in February 2024. Mumbai continued to lead
in terms of active investors, with a 1.3% increase to 12.65 lakh active investors. Notable
increases were also observed in Delhi (NCR) and Jaipur, rising by 5.4% to 11.9 lakh and
4.7% to 2.1 lakh active total investors, respectively. However, Ahmedabad, although
maintaining its position as the third-largest district in terms of active investors, recorded
a marginal decline of 54 bps in February 2024, totaling 4.5 lakh investors.
Figure 259: Top 10 districts based on cash turnover of individual investors

Rs lakh crore
3
absolute turnover of active investors
3 2.32
1.91
2
1
0.73
0.65
0.47 0.45 0.40
1 0.39 0.36
0.28
0
Mumbai Delhi - NCR Ahmedabad Bengaluru Pune Kolkata Hyderabad Jaipur Surat Chennai
Source: NSE EPR.
Note: 1) Mumbai (MH/TN/RG); 2) Individual investors include Individual / Proprietorship firms and HUF. The top ten districts are chosen based on last month’s data.
Figure 260: Top 10 districts based on individual investors traded in the cash market
Lakhs
14
12.65
11.92 Nov-23 Dec-23 Jan-24 Feb-24
12
10
total active investors
in cash market
6
4.54
4.05
4 3.58 3.33
2.12 1.96 1.70 1.70
2
0
Mumbai Delhi - NCR Ahmedabad Pune Bengaluru Surat Jaipur Kolkata Rajkot Hyderabad
Source: NSE EPR.
Contribution of top 10 districts in individual turnover fell marginally in February

2024: The total turnover of individual investors remained concentrated in a select few
districts. The contribution of the top 10 districts to the total cash market turnover
experienced a mild decrease to 44.8% in Feb’24, compared to 44.9% in Jan’24 (vs.
45.1% in Dec’23). The share of Mumbai saw a marginal decline of 22bps to 13% (vs.
13.2% in Jan’24), while that of Ahmedabad remained stable at 10.73%. Ahmedabad,
Bengaluru, and Pune maintained their positions as the third largest district in terms of
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Market Pulse
individual investors’ turnover with a 4.1% share, fourth with a 3.7% share, and fifth with
2.7% share respectively among the highest-contributing districts.
…coupled with a moderate decline in active investor base share: The concentration of
active individual investors in the cash market remains predominantly within a few specific
districts. The contribution of the top 10 districts dropped for the third month in a row by
nearly 50bps MoM to 31% in Feb’24—the lowest since the period of our analysis (March
2021). The share of Mumbai saw a marginal decline to 8.2%, down from 8.5% in Jan’24,
while that of Delhi-NCR increased by 9bps MoM to 7.78%. Ahmedabad, Pune, and
Bengaluru remained at the third place in terms of active investor base with a 3.0% share,
fourth with a 2.6% share, and fifth with a 2.3% share respectively, among the highest-
contributing districts.
Figure 261: Top 10 districts share based on individual turnover in the cash market
16%
14% 13.01%
12%
10.73%
%share of cash turnover
10%
8%
6%
4.12%
3.66%
4%
2.66% 2.52% 2.25% 2.02% 2.21%
1.58%
2%
0%
Mumbai Delhi - NCR Ahmedabad Bengaluru Pune Kolkata Hyderabad Surat Jaipur Chennai
Source: NSE EPR
Figure 262: Top 10 districts share based on individual investors traded in the cash market
10%
9% 8.25%
7.78%
8%
investors in cash market
7%
% of of individual
6%
5%
4%
2.96%
3% 2.64%
2.33% 2.17%
2% 1.28% 1.38%
1.11% 1.11%
1%
0%
Mumbai Delhi - NCR Ahmedabad Pune Bengaluru Surat Kolkata Jaipur Hyderabad Rajkot
Source: NSE EPR
218/239
Market Pulse
Turnover of top-10 traded symbols during the month

The turnover of top-10 traded scrips increased to Rs 3.6 lakh crore (+9.8% MoM) while
the overall segment turnover dropped marginally to Rs 24.6 lakh crore (-1.3% MoM) in
Feb-24. The share of these top-10 scrips increased to 14.7% (+149bps MoM), of which
six scrips registered MoM growth barring four scrips which exhibited decline in turnover.
HDFC Bank remained the most traded stock in the segment, although its turnover
experienced a substantial decline from the previous month.
Table 88: Top-10 symbols based on total turnover of NSE CM segment in February 2024
Symbol (Rs Cr) Feb-24 Jan-24 %Change
HDFCBANK 67,122 93,172 (28.0)
NHPC 43,739 18,228 140.0
JIOFIN 40,798 13,892 193.7
SBIN 38,318 23,390 63.8
RELIANCE 34,928 36,069 (3.2)
YESBANK 32,800 19,632 67.1
ICICIBANK 28,448 41,637 (31.7)
ZOMATO 27,563 16,080 71.4
IRFC 24,511 51,120 (52.1)
PNB 22,159 14,989 47.8

Source: NSE EPR. Figures in brackets indicate negative numbers.
The turnover of top-10 scrips in stock futures increased to Rs 6.8 lakh crore (+9.9% MoM)
while the overall segment turnover increased marginally to Rs 29.7 lakh crore (+1% MoM)
in Feb-24. The top-10 scrips contributed 23% (+187bps MoM) of overall turnover in the
segment, with five scrips recording MoM growth and the remaining five scrips
experiencing decline in turnover. HDFC Bank continued to be the top traded scrip for stock
futures segment.
Table 89: Top-10 symbols based on total turnover of stock futures in February 2024
HDFCBANK 155,044 159,484 (2.8)
SBIN 113,452 74,538 52.2
RELIANCE 70,961 73,558 (3.5)

ICICIBANK 70,807 82,437 (14.1)
TATAMOTORS 58,435 53,363 9.5
IOC 48,705 22,147 119.9

PFC 45,674 47,435 (3.7)
BANKBARODA 40,489 28,993 39.7

LT 40,358 34,472 17.1
AXISBANK 40,321 46,278 (12.9)
Similarly, the premium turnover of top-10 scrips in stock options increased to Rs 47,402
crore (+8.4% MoM) while overall segment turnover registered a marginal drop to Rs 1.7
lakh crore (-3% MoM) in Feb-24. These top-10 scrips contributed 27.5% (+290 bps MoM)
of the overall stock options premium turnover in the segment, with four scrips registering
MoM growth and the remaining six scrips registering MoM decline in turnover. State Bank
219/239
Market Pulse
of India exhibited a notable growth in turnover during the month, surpassing HDFC Bank
to become the most traded scrip in the segment.
Table 90: Top-10 symbols based on total premium turnover of stock options in February 2024
SBIN 10,487 4,034 159.9
HDFCBANK 5,295 7,313 (27.6)
RELIANCE 4,941 6,434 (23.2)
TATAMOTORS 4,833 5,038 (4.1)
BPCL 4,411 1,394 216.4
IOC 4,061 1,590 155.3
ADANIENT 3,714 7,031 (47.2)
PFC 3,372 3,706 (9.0)
COALINDIA 3,339 1,754 90.4
ADANIPORTS 2,949 5,426 (45.7)

220/239
Market Pulse
Record statistics
NSE commodity options recorded an all-time high premium turnover in Feb-24:
Commodity options recorded the highest ever premium turnover of Rs 18.5 crore on
February 15th, 2024, surpassing the record registered in January. Stock futures recorded
a lifetime high of Rs 3.5 lakh crore on January 23rd, 2024, which was 2.6x the ADT during
the month and 3x the ADT during the FY24 (Apr-23 to Feb-24).
The turnover in CM segment had registered a record turnover of Rs 1.7 lakh crore as on
November 30th, 2023, which was more than double of the ADT recorded during FY24.
Index options recorded a turnover of Rs 1 lakh crore premium turnover on February 1st,
2023, which was nearly 1.9x higher the daily average of Rs 55,911 crore attained during
FY24. While equity derivatives turnover registered healthy growth in the current fiscal,
index futures, currency futures and currency options recorded highest day turnover in the
previous fiscal year.
Table 91: Segment-wise record turnover till February 29th, 2024

Segment Turnover (Rs crore) Trading Date
Capital market 1,67,934 30-Nov-23
Index futures 96,884 24-Feb-22
Stock futures 3,45,051 23-Jan-24
Index options (Premium) 1,02,638 01-Feb-23
Stock options (Premium) 12,049 13-Oct-21
Currency Futures 94,032 21-Oct-22
Currency Options (Premium) 635 11-Nov-22
Interest Rate Futures 2,074 25-Jun-20
Commodity Futures 145 29-Aug-19
Commodity Options (premium) 18.5 15-Feb-24

Source: NSE EPR.
221/239
Market Pulse
Investment through mutual funds in India

Mutual funds’ asset under management (AUM) rose further in February…: The overall
AUM of Indian mutual funds saw a modest increase by 3% MoM to Rs 54.5 lakh crore in
February. On a YoY basis, the AUM was up by 34% and is 121% higher from the post-
pandemic lows. Despite Indian equities underperforming the emerging as well as
developed markets, particularly mid- and small-caps falling in February, the net inflows
remained high, supported by strong economic fundamentals. The month gone by saw a
net inflow of Rs 1.18 lakh crore as compared to a net inflow of Rs 1.23 lakh crore in
January 2024. This was supported by strong inflows via Systematic Investment Plans
(SIPs) which reached a record high in February. The AUM of close-ended schemes
remained at a similar level of Rs 29,084 crore and contributed only 0.5% in the total
mutual fund AUM.
Figure 263: Monthly trend of total MF schemes and average AUM

AAUM* for the month (Rs cr) - RHS No. of Schemes
2,500 60,00,000
54,52,487
50,00,000
2,000
40,00,000
1,500
30,00,000
1,000
20,00,000
500
10,00,000
0 0
Feb-21
Oct-21
Feb-22
Oct-22
Feb-23
Oct-23
Feb-24
Jun-21
Jun-22
Jun-23
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Source: AMFI, NSE EPR. *AAUM-Average Assets under Management.
Figure 264: Monthly trend of total investment through mutual funds

Fund mobilized during the month (Rs cr) Repurchase/Redemption during the month (Rs cr)
Net Inflow (+ve)/Outflow (-ve) for the month (Rs cr) - RHS
20,00,000 2,00,000
18,00,000
1,00,000
16,00,000
14,00,000 0
12,00,000
(1,00,000)
10,00,000
(2,00,000)
8,00,000
6,00,000 (3,00,000)
4,00,000
(4,00,000)
2,00,000
0 (5,00,000)
Oct-21
Oct-22
Oct-23
Feb-21
Jun-21
Feb-22
Jun-22
Feb-23
Feb-24
Jun-23
Aug-21
Aug-22
Aug-23
Dec-20
Apr-21
Dec-21
Apr-22
Dec-22
Apr-23
Dec-23
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Market Pulse
…aided by strong SIP inflows: Individual investors continued buying Indian equities via
direct as well as indirect routes in February. Net inflows by individual investors directly
into NSE listed companies stood at Rs 25,047 crores during the month. Notwithstanding
the underperformance of Indian equities vis-à-vis EMs and DMs, indirect participation via
SIPs has been quite strong. Net SIP inflows into mutual funds touched a fresh record high
of Rs 19,187 crores in February, up 2% MoM, translating into average SIP inflows of Rs
16,359 crore in FY24 vs. Rs 12,935 crores in FY23, implying a robust growth of 26%. The
SIP AUM at Rs 10.5 lakh crore is now nearly one-fifth of the overall industry AUM.
Figure 265: Monthly trend of total investment through mutual funds

Rs crore
Monthly SIP inflows into mutual funds
25,000
20,000
15,000
10,000
5,000
Oct-23
Oct-16
Feb-17
Oct-17
Feb-18
Oct-18
Feb-19
Oct-19
Feb-20
Oct-20
Feb-21
Oct-21
Feb-22
Oct-22
Feb-23
Feb-24
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Jun-22
Jun-23
Majority of the overall AUM is actively managed: Out of the overall industry AUM of Rs
54.5 lakh crore as of Feb’24, nearly Rs 45 lakh crore or 83% was actively managed. Within
the pure equity AUM of Rs 29.3 lakh crore (+3.6% MoM), which is 54% of the overall MF
AUM, passive equity funds comprised of 22% or Rs 6.3 lakh crore (+3.3% MoM), of which
ETFs accounted for an 85% share. The balance Rs 23 lakh crore was in active equity funds
(+3.7% MoM). The total debt AUM stood at Rs 16.8 lakh crore as of February-end (+1.7%
MoM, 31% of the overall AUM), out of which only 12%, i.e. Rs 2 lakh crore (+1.1% MoM),
was contributed by passive debt funds, with the balance Rs 14.8 lakh crore (+1.7% MoM)
being actively managed. The AUM of hybrid funds stood at Rs 7.3 lakh crore (+4.7% MoM)
in February, with its share increasing for the eighth month in a row to 13.4% in Feb’24
from 13.2% in the previous month.
223/239
Market Pulse
Table 92: Monthly trend of average AUM of mutual funds across categories
Rs crore Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 % share
Total MF AUM 47,79,015 47,80,422 48,74,813 51,09,072 52,89,008 54,52,487 100
Equity 24,54,379 24,48,014 25,16,948 27,25,654 28,30,247 29,33,269 53.8
Active 19,12,484 19,08,538 19,66,076 21,25,193 22,13,373 22,95,989 42.1
Passive 5,41,895 5,39,476 5,50,872 6,00,461 6,16,875 6,37,281 11.7
Index funds 71,560 72,349 75,744 84,527 90,096 96,121 1.8
Domestic 67,825 68,747 71,963 80,549 86,039 91,899 1.7
International 3,734 3,602 3,782 3,978 4,057 4,222 0.1
ETFs 4,70,335 4,67,128 4,75,128 5,15,934 5,26,779 5,41,159 9.9
Domestic 4,61,377 4,58,391 4,65,885 5,06,220 5,16,764 5,30,478 9.7
International 8,958 8,737 9,243 9,714 10,014 10,682 0.2
Debt 16,36,613 16,28,639 16,31,963 16,14,928 16,54,389 16,81,748 30.8
Active 14,38,820 14,29,947 14,32,904 14,15,899 14,54,256 14,79,320 27.1
Passive 1,97,793 1,98,692 1,99,059 1,99,029 2,00,133 2,02,428 3.7
Index funds 1,08,602 1,08,706 1,09,184 1,09,050 1,07,976 1,08,213 2.0
ETFs 89,191 89,986 89,875 89,979 92,158 94,215 1.7
Hybrid 5,96,839 6,12,579 6,30,997 6,69,433 7,00,302 7,33,273 13.4
Others* 91,184 91,190 94,905 99,056 1,04,069 1,04,196 1.9
*Others include Gold and silver ETFs, other ETFs and index funds, solution-oriented schemes, interval schemes, fund of funds investing overseas in active and passive
funds.
Growth is primarily led by active equity schemes: The AUM of active equity or growth-
oriented schemes has been consistently rising since 2020, rising 239% since March
2020. In February, the active equity AUM rose 3.7% MoM/50.3% YoY to Rs 23 lakh crore,
slightly higher than the 3.1% MoM increase in the overall industry’s AUM. A large part of
this is attributed to robust inflows into equity mutual funds through SIPs as mentioned
above. The share of active equity funds in the overall AUM rose further to 42.1% in Feb’24
from 37.5% in the year-ago period. The AUM of active debt-oriented schemes increased
by 1.7% MoM (+11.5% YoY, +14% since Mar’20) to Rs 14.8 lakh crore in Feb’24.
However, the share of the active debt AUM dropped for the eighth month in a row to
27.1% in Feb’24 as compared to 27.5% in the previous month. On a YoY basis, the share
dropped 547bps from 32.6% in Feb’23.
Figure 266: Share of overall mutual fund AUM across asset classes
Others Others
17% Active Equity 17% Active Equity
38% 42%
Hybrid Hybrid
12% 14%
Active Debt
33% Active Debt
27%
Source: CMIE Economic Outlook, AMFI, NSE EPR.

Note: Others include all passive funds (Index funds and ETFs), solution-oriented schemes, interval schemes, fund of funds investing overseas in active and passive funds.
224/239
Market Pulse
Figure 267: Category-wise AUM split

Rs lakh cr Active Equity Active Debt Hybrid Others
60
9.4
50
7.3
40
14.8
30
20
23.0
10
-
Oct-20
Oct-21
Oct-22
Oct-23
Feb-20
Jun-20
Feb-21
Jun-21
Feb-22
Jun-22
Feb-23
Feb-24
Jun-23
Apr-20
Aug-20
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
* Others include all passive funds (Index funds and ETFs), solution-oriented schemes, interval schemes, fund of funds investing overseas in active and passive funds.
Figure 268: Category-wise share in MF AUM

%
Active Equity Active Debt Hybrid Others
60.0
50.0
42.1
40.0
30.0
27.1
20.0
17.3
13.4
10.0
-
Oct-20
Oct-21
Oct-22
Oct-23
Feb-20
Jun-20
Feb-21
Jun-21
Feb-22
Jun-22
Feb-23
Feb-24
Jun-23
Apr-20
Aug-20
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23

*Others include all passive funds (Index funds and ETFs), solution-oriented schemes, interval schemes, fund of funds investing overseas in active and passive funds.
Equity AUM remained concentrated in a few states in February 2024: Maharashtra and
Gujarat together account for 37.3% of the overall equity mutual fund AUM in Feb’24, same
as the previous month. Among larger states, Maharashtra’s and Karnataka’s share inched
up 4bps to 28.93% and 8.1% respectively in Feb’24, while that of Delhi increased by 5bps
to 7.8%. The share of Gujarat, Uttar Pradesh and West Bengal remained unchanged at
8.4%, 6.5% and 6% respectively during the month. These top six states together accounted
for 65.6% of the equity AUM share. The remaining states contributed less than 5% each to
the overall equity AUM of the mutual fund industry.
225/239
Market Pulse
Figure 269: State-wise distribution of Equity schemes AUM in Feb’23 and Feb’24
Source: NSE EPR.

Note: The maps are created using the state-level shapefile (https://geographicalanalysis.com/gis-blog/download-free-india-
shapefile-including-kashmir-and-ladakh/
Fund mobilization through new schemes increased in February 2024: In the last five
years, the total fund mobilized through new schemes was highest in 2021 at Rs 96,341
crore. The total number of newly launched schemes had been steadily rising from 81 in
2020 to 228 in 2022. The year 2023 saw a reversal in this trend, with the number of
schemes dropping to 212. Despite that, the fund mobilized through these schemes stood
at Rs 63,930 crore in 2023 as compared to Rs 62,187 crore in 2022. The average fund
mobilized per scheme increased from Rs 273 crore in 2022 to Rs 302 crore in 2023. In
February, the number of new schemes stood at 22 vs. 20 in the previous month, with total
fund mobilization of Rs 11,720 translating into per scheme mobilization of Rs 533 crore,
up 56% MoM. Of the total number of schemes, 1,399 were open-ended schemes, 118
were close-ended and the rest 12 were interval schemes.
226/239
Market Pulse
Figure 270: Monthly trend of total investment through new schemes
Funds mobilized through new schemes (Rs cr) - RHS Average fund mobilised (Rs cr)
4,500 25,000
4,000
3,500 20,000
3,000
15,000
2,500
2,000
10,000
1,500
1,000 5,000
500
0 0
Oct-21
Oct-22
Oct-23
Feb-21
Feb-22
Feb-23
Feb-24
Jun-21
Jun-22
Jun-23
Dec-20
Apr-21
Aug-21
Dec-21
Apr-22
Aug-22
Dec-22
Apr-23
Aug-23
Dec-23
Figure 271: Annual trend of fund mobilization through new schemes*
Rs cr
Amount raised through new schemes
Sum of Funds mobilised Sum of No. of new schemes - RHS
1,00,000 250
80,000 200
60,000 150
40,000 100
20,000 50
- 0
2019 2020 2021 2022 2023 2024
Source: AMFI, NSE EPR. * Data for 2024 is of February 2024
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Market Pulse
Comparison of trading activities across major exchanges globally

After starting the year at a slower pace, emerging markets rebounded along with the developed markets, driven by a
strong rally in Chinese equities in February. The emerging equities outperformed with MSCI EM Index rising 4.6% MoM
as compared to a 4.1% MoM increase in MSCI World Index. The outperformance of the Chinese equities aided by
economic stabilization and policy support which resulted in the highest increase in market capitalization of all major
exchanges in China. Indian equities underperformed its emerging as well as developed counterparts in February, on
the back of profit-booking due to stretched valuations. Indian equity markets, however, ended the month in green
supported by strong economic fundamentals and domestic participation. In this section, we look at the overall trend
of trading patterns in the securities market over the last three years in various segments across stock exchanges
around the world.
We used data from the World Federation of Exchanges (WFE) over the period Jan’21-Feb’24, covering a total of 123
exchanges, 63 of which are from the EMEA region, 36 from Asia-Pacific, and the rest from the Americas. We have also
highlighted NSE's share across asset classes in cash and spot markets based on market capitalization and trading
activity. The key takeaways of the analysis are as follows.
• Market capitalization of major exchanges increased in Feb’24: Global equities

rebounded in February while Indian equities remained on the sidelines with Nifty50
Index underperforming its emerging as well as developed counterparts during the
month. Emerging markets (MSCI EM Index) saw a 4.6% MoM increase,
outperforming the developed markets (MSCI World Index) that saw a gain of 4.1%
on a MoM basis in Feb’24. The Chinese equities outperformed with Shenzhen Stock
Exchange and Shanghai Stock Exchange showing the highest increase in market
capitalization in February among the top 10 exchanges. The NSE’s market
capitalization, however, increased by a modest 2% MoM in February. All the
exchanges in the top-10 category saw a MoM increase in market capitalization
ranging between 1-10% in the month of February. On a YoY basis, market
capitalization of seven out of the top 10 exchanges increased within 6-50% in
Feb’24, while Hong Kong Exchange, Shanghai Stock Exchange and Shenzhen Stock
Exchange declined 16%, 9% and 21% YoY respectively.
NSE maintained its sixth position in terms of market capitalization: After

overtaking Hong Kong Exchange (HKEX) in Nov’23 and Shenzhen Stock Exchange
(SZSE) in Jan’24 in terms of market capitalization, NSE maintained the sixth
position with a market capitalization of US$4.6trn (+2% MoM) as of Feb’24. The
NYSE remained the world’s largest stock exchange in terms of market
capitalization at US$26trn, followed by Nasdaq-US (US$25trn) in Feb’24. Euronext
remained in the third spot with a market capitalization of US$6.8trn in Feb’24. The
Shanghai Stock Exchange (SSE) regained its fourth spot (US$6.52trn, +8% MoM) in
Feb’24 after JPX overtook SSE in Jan’24. The Japan Exchange Group was relegated
to the fifth position with a market capitalization of US$6.51trn (+3% MoM) as of
Feb’24. The NSE maintained its sixth position, followed by SZSE and HKEX, with a
market capitalization of US$4.6trn (+2% MoM), US$4trn (+10% MoM) and
US$3.8trn (+7% MoM) respectively as of Feb’24. The TMX Group and Saudi
Exchange (Tadawul) took the 9th and 10th spot respectively among the top-10 in
Feb’24.
• NSE topped in terms of number of trades in equity market in Feb’24: In major

developments, after overtaking SSE for the first time in Dec’23 in terms of number
of trades, NSE overtook SZSE to reach the first position with 86.5 crore trades (+3%
MoM) in Feb’24. The SZSE stood at the second spot with 84 crore trades (-13%
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Market Pulse
MoM) followed by SSE with 66 crore trades (-13% MoM) in Feb’24. Among the top
10 exchanges, SZSE, SSE, KRX, CBOE Group and CBOE Europe saw a decrease in
no. of trades ranging between 1-13% in Feb’24.
On an annual basis, SZSE has remained at the top with 945 crore trades in 2021,
1,130 in 2022 and 1,077 crores in 2023 with a global market share of 23%. SZSE
continued to be at the top with 181 crore trades while NSE reached the second spot
in 2024 (as of Feb’24) with 170 crore trades as compared to 140 crore trades by
SSE. NSE’s share had dropped from 11.8% in 2021 to 10.2% in 2022 but increased
to 12% in 2023 and increased further to 19.2% in 2024 (as of Feb’24, based on the
data available). Among the top 10 exchanges, only NSE and JPX saw an increase in
market share.
• NSE continues to lead the global markets in equity derivatives segment: NSE’s
global market share has seen a significant jump in terms of contracts traded with
its share increasing from 35% in 2021 to 56% in 2022 and a whopping 74% in
2023. This share further increased to 87% in 2024 (as of Feb’24) with 2,096 crore
contracts traded. This increase in market share led to a decrease in share of the
rest of the top 10 exchanges except Tehran Stock Exchange which saw an increase
in market share from 1.1% in 2023 to 1.5% in 2024 (as of Feb’24). B3 stood at
second spot with its share dropping from 12.1% in 2022 to 6.3% in 2023 to 1.8%
in 2024 (as of Feb’24), followed by Tehran Stock Exchange whose market share
increased from 1.1% in 2023 to 1.5% in 2024 and Korea Stock Exchange whose
market shares declined from 1.7% to 1.4% during the same period.
• NSE maintained its fourth spot in stock futures in February 2024: NSE stood at
the fourth spot in the stock futures segment with contracts traded dropping slightly
to 3.5 crore (-4% MoM) as compared to 3.6 crore in the previous month. The first
two positions were held by Borsa Istanbul (16 crore contracts traded, +6% MoM)
and Korea Exchange (9 crore contracts traded, -3% MoM) respectively. Among the
top 10 exchanges, ICE Futures Group (+46% MoM) and Athens Stock Exchange
(+39% MoM) witnessed a substantial increase to 9 lakh and 6 lakh contracts traded
respectively in Feb’24.
• NSE maintained its third spot in the stock options for three months in a
row: Major exchanges displayed volatility in terms of contracts traded in the stock
options. Tehran saw a 45% MoM drop in contracts traded to 13 crore and slipped
to the second spot. Nasdaq reached the first spot with a 4% MoM increase to 16.4
crore contracts traded as compared to 15.8 crore in the previous month. After
reaching third spot in the previous month, NSE maintained its ranking despite a 3%
MoM drop in contracts traded to 11.7 crore in Feb’24. CBOE Global Markets and B3
also remained at the fourth and fifth spot respectively with 11.4 crore and 10.9
crore contracts traded in Feb’24. Among the top 10 exchanges, only NSE and
Tehran Stock Exchange witnessed a MoM decrease in contracts traded.
• NSE maintained its global dominance in the equity index options: NSE has
consistently maintained global leadership position in equity index options with
98% market share, despite a slight drop in contracts traded by 5% MoM to 1,006
crores in Feb’24 as compared to 1,057 crores in the previous month. CBOE Global
Markets retained its second spot with 8 crore contracts traded in Feb’24. This was
followed by Korea Exchange with 5.7 crore (-23% MoM), CME Group with 3.7 crore
(+5% MoM) and DBAG with 3.1 crore (-7% MoM) contracts traded respectively in
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Feb’24. Among the top 10 exchanges, Taiwan Stock Exchange and Tel-Aviv Stock
Exchange witnessed significant decline to 80 lakh (-53% MoM) and 19 lakh (-26%
MoM) contracts traded in Feb’24. Overall, the top 10 exchanges saw an average
drop of 5% in contracts traded.
• NSE reached the seventh spot in equity index futures: After reaching the eighth
spot in Dec’23, NSE climbed further to seventh spot despite number of traded
contracts traded dropping to 97 lakhs in Feb’24 as compared to 98 lakhs in the
previous month. B3 - Brazil Bolsa Balco continued to lead in this segment with 27
crore contracts traded accounting for 57% global market share. This was followed
by CME Group at 9.6 crores contracts traded (-7% MoM). JPX and DBAG stood at
third and fourth spot with 3 crore and 2.7 crore contracts traded respectively in
Feb’24. All the top 10 exchanges saw a decrease in contracts traded, except JPX
and Borsa Istanbul.
• NSE retained its top rank in the currency derivatives segment: NSE has been the
world's largest exchange in the currency options segment for more than three
years. NSE saw a 22% MoM drop in contracts traded to 24 crores with its market
share dropping slightly to 98.3% in Feb’24 as compared to 98.7% in the previous
month. Johannesburg Stock Exchange, CME Group and Tel-Aviv Stock Exchange —
the next three exchanges in the top-10 — registered 23 lakhs, 8 lakhs and 7 lakhs
traded contracts respectively. After reaching the first position in Nov’23, NSE
maintained its top spot in the currency futures segment despite a 25% MoM drop
in contracts traded to 5.4 crores in Feb’24. B3 stood at the second spot with 4.8
crore contracts traded in Feb’24. The third and fourth position was held by CME
Group and Matba Rofex with 1.6 crores (-10% MoM) and 1.3 crore contracts traded
leading to 11% and 9% market share respectively in Feb’24.
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Figure 272: Domestic market cap of top ranked Figure 273: Number of trades in Cash market of top ten
exchanges* exchanges*
a. Domestic market capitalization (US$trn) b. Number of trades - Cash market (cr)
crores Sep-23 Oct-23 Nov-23
NYSE Dec-23 Jan-24 Feb-24
120.0
Nasdaq
Euronext 100.0
86.5 84.3
Feb-24 Feb-23
SSE 80.0
Feb-22
65.7
JPX
60.0
NSE
40.8
40.0 34.2
SZSE
26.2 25.4
HKEX 17.4
20.0
11.5
4.7
TMX Group
0.0
NSE
Global
Europe
Nasdaq
NYSE
CBOE
Tadawul
SSE
KRX
SZSE
BIST
JPX
Cboe
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 24.0
Source: WFE monthly statistics, NSE EPR. Source: WFE monthly statistics, NSE EPR.
# Due to unavailability of equity data for the month of Feb’24 for NYSE and # Due to unavailability of equity data for the month of Feb’24 and Jan’24 for CBOE
Euronext, data for the month of Jan’24 has been used for analysis. Global, data for the month of Dec’23 has been used for analysis. Due to
unavailability of equity data for the month of Feb’24 for NYSE, data for the month
of Jan’24 has been used for analysis.
Table 93: No. of trades (cr) in the top 10 exchanges in Table 94: Global market share of trades in the top 10
cash market* exchanges in cash market*
2024 2024
Exchange 2022 2023 Exchange 2022 2023
(Jan-Feb) (Jan-Feb)
SZSE 1,130 1,064 181 SZSE 23.3% 22.8% 20.4%
NSE 496 553 170 NSE 10.2% 11.9% 19.2%
SSE 811 750 141 SSE 16.7% 16.1% 15.9%
KRX 399 473 85 KRX 8.2% 10.1% 9.6%
Nasdaq 454 391 67 Nasdaq 9.4% 8.4% 7.6%
CBOE Global # 383 298 53 CBOE Global # 7.9% 6.4% 5.9%
NYSE # 362 303 51 NYSE # 7.5% 6.5% 5.7%
BIST 88 166 31 BIST 1.8% 3.6% 3.5%
JPX 92 103 21 JPX 1.9% 2.2% 2.4%
CBOE Europe 79 60 10 CBOE Europe 1.6% 1.3% 1.1%
# Due to unavailability of equity data for the month of Feb’24 and Jan’24 for CBOE # Due to unavailability of equity data for the month of Feb’24 and Jan’24 for CBOE
Global, data for the month of Dec’23 has been used for analysis. Due to unavailability Global, data for the month of Dec’23 has been used for analysis. Due to
of equity data for the month of Feb’24 for NYSE, data for the month of Jan’24 has unavailability of equity data for the month of Feb’24 for NYSE, data for the month
of Jan’24 has been used for analysis.
been used for analysis.
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Table 95: No. of contracts traded (cr) in the top 10 Table 96: Global market share of contracts traded in
exchanges in equity derivatives segment* the top 10 exchanges in equity derivatives segment*
2024 2024
Exchange 2022 2023 Exchange 2022 2023
(Jan-Feb) (Jan-Feb)
NSE 3,378 8,021 2,096 NSE 56.2% 74.1% 86.7%
B3 # 729 680 44 B3 # 12.1% 6.3% 1.8%
TSE 21 122 36 TSE 0.4% 1.1% 1.5%
KRX 187 185 34 KRX 3.1% 1.7% 1.4%
Nasdaq 179 178 32 Nasdaq 3.0% 1.6% 1.3%
BIST 259 195 32 BIST 4.3% 1.8% 1.3%
CME Group 192 167 27 CME Group 3.2% 1.5% 1.1%
NYSE 109 106 21 NYSE 1.8% 1.0% 0.9%
MIAX 77 94 17 MIAX 3.8% 2.2% 0.8%
DBAG 123 114 16 DBAG 1.3% 0.9% 0.7%
# Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for # Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for
B3, data for Dec’23 has been used. B3, data for Dec’23 has been used.
Table 97: Number of contracts traded (cr) traded in Table 98: Number of contracts traded (cr) traded in
Stock futures of top-ranked exchanges* Stock options of top-ranked exchanges*
2022 2023 2024 2022 2023 2024
Exchange % YoY Exchange % YoY
(Jan-Feb) (Jan-Feb) (Jan-Feb) (Jan-Feb) (Jan-Feb) (Jan-Feb)
BIST 34.9 30.4 30.9 1.7 TSE 0.9 5.5 36.4 567.0
KRX 15.9 14.9 18.2 22.5 Nasdaq 31.7 29.7 32.2 8.2
B3 # 24.9 23.5 11.7 -50.1 NSE 12.1 14.4 23.8 65.4
NSE 4.9 4.7 7.0 51.4 CBOE Global # 26.0 24.3 22.9 -6.0
BME Spanish 0.8 0.6 1.4 123.0 B3 # 28.4 27.0 21.7 -19.5
DBAG 0.9 0.9 0.8 -4.9 NYSE 19.6 19.5 21.1 8.2
TAIFEX 0.8 0.5 0.8 57.8 MIAX 13.7 16.0 17.3 8.1
TFEX 1.2 0.9 0.5 -46.8 ISE 9.9 8.9 12.4 39.5
ICE Fut. Europe 0.2 0.2 0.1 -22.5 DBAG 3.5 2.9 2.9 0.3
Athens 0.1 0.2 0.1 -34.9 IFB 2.4 0.7 2.2 230.6
# Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for # Due to unavailability of derivatives data for the month of Feb’24 and Jan’24
B3, data for Dec’23 has been used. for B3 and CBOE Global, data for Dec’23 has been used.
Table 99: Number of contracts traded (cr) in Index Table 100: Number of contracts traded (cr) in Index
futures of top ranked exchanges* options of top ranked exchanges*
2022 2023 2024 2022 2023 2024
B3 # 77.2 61.8 53.8 -12.9 NSE 398.2 877.1 2,063.4 135.3
CME Group 27.8 21.6 19.8 -8.4 CBOE Global # 9.7 13.4 15.9 19.0
JPX 5.7 3.8 5.9 54.0 KRX 13.1 12.9 13.0 1.0
DBAG 7.3 6.7 5.5 -17.4 CME Group 5.0 4.9 7.2 45.6
SGX 2.8 2.6 2.8 5.3 DBAG 7.2 7.0 6.3 -9.3
HKEX 1.8 2.1 2.6 21.3 TAIFEX 3.0 2.1 2.5 19.6
NSE 1.9 1.6 1.9 19.6 HKEX 0.4 0.6 0.7 15.2
KRX 1.9 1.8 1.8 2.4 JPX 0.4 0.4 0.5 36.8
TAIFEX 1.6 1.3 1.3 5.7 TASE 0.6 0.4 0.4 0.9
BIST 1.8 1.2 0.8 -32.3 B3 # 1.1 0.4 0.3 -23.0

# Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for # Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for B3
B3, data for Dec’23 has been used. and CBOE Global, data for Dec’23 has been used.
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Table 101: Number of contracts traded (cr) in Currency Table 102: Number of contracts traded (cr) in Currency
futures of top ranked exchanges* options of top ranked exchanges*
2022 2023 2024 2022 2023 2024
NSE 17.8 19.9 12.6 -36.4 NSE 45.6 68.5 54.5 -20.4
CME JSE # 0.1 0.4 0.5 10.6
3.1 3.1 3.4 11.6
Group
CME
MTR.BA 2.1 3.0 2.3 -23.5 0.2 0.1 0.2 2.4
Group
KRX 1.6 1.8 1.8 1.5 TASE 0.2 0.2 0.1 -31.2
MSE 0.2 1.2 0.7 -37.4 B3 0.061 0.065 0.055 -16.4
SGX 0.4 0.6 0.8 38.9 BIST 0.002 0.011 0.020 85.8
BIST 1.4 0.9 0.7 -15.2 BET 0.0001 0.001 0.002 184.7
HKEX 0.0 0.1 0.3 446.2 SGX 0.0002 0.002 0.001 -67.3
TFEX 0.1 0.2 0.2 -18.9 MTR.BA 0.0003 0.0004 0.0002 -51.4
BMV 0.1 0.1 0.1 15.1 BMV 0.0001 0.0003 0.0002 -21.4
# Due to unavailability of derivatives data for the month of Feb’24 and Jan’24 for
B3, data for Dec’23 has been used. Due to unavailability of derivatives data for the
month of Feb’24 for JSE, data for the month of Jan’24 has been used.
* ASX - Australian Securities Exchange, BIST - Borsa Istanbul, BME - Spanish Exchanges, BSE - BSE India Limited, HKEX - Hong Kong Exchanges and Clearing, ISE -
International Securities Exchange, JPX - Japan Exchange Group Inc., JSE - Johannesburg Stock Exchange, KRX - Korea Exchange, LSE – London Stock Exchange, MOEX
- Moscow Exchange, NSE - National Stock Exchange of India Ltd., NYSE – New York Stock Exchange, SGX - Singapore Exchange, SSE - Shanghai Stock Exchange, SZSE -
Shenzhen Stock Exchange, TMX – TMX Group, TSE - Tehran Stock Exchange, TFE - Taiwan Futures Exchange, Tadawul - Saudi Stock Exchange (Tadawul), TASE - Tel-Aviv
Stock Exchange, MIAX - Miami International Securities Exchange, DBAG - Deutsche Boerse AG, India INX - India International Exchange. Only WFE member exchanges
are included in the analysis.
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Market Pulse
Policy developments
India
Key policy measures by the SEBI during March 27 26F
Measures to instill trust in securities market – Expanding the framework of

Qualified Stock Brokers (QSBs) to more stock brokers
SEBI extends the framework of QSBs to more stockbrokers in order to foster trust and
protect the interest of the investors. Previously, the list of QSBs followed four
parameters: 1. Total number of active clients, 2. Available total assets of clients with
stock broker, 3. Trading volumes and 4. The end of day margin obligation of all clients
March 11th, 2024 of each stock broker.
To strengthen the compliance and monitoring requirements the revised list of QSBs
shall include three additional parameters: 1. Compliance score, 2. Grievance redressal
score and 3. Proprietary trading volumes of the stock broker.
Once the updated list of QSBs is published, the QSBs that are no longer on the list shall
follow and comply the enhanced responsibilities for three additional financial years.
Amendment to Circular for mandating additional disclosures by FPIs that fulfil

certain objective criteria
SEBI issued a circular on August 24, 2023, introducing additional disclosure mandates
for Foreign Portfolio Investors (FPIs) meeting certain criteria, with specific exemptions
outlined in Para 8 of the circular. An update to this circular on March 20th, 2024,
exempts FPIs with over 50% of their Indian equity AUM in a corporate group from
these additional disclosures, given they comply with certain conditions, including the
March 20th, 2024 apex company of the corporate group having no identified promoter and the FPI's
holdings in the corporate group (excluding the apex company) not exceeding 50%.
Additionally, the collective holdings in the apex company by such FPIs must be below
3% of its total equity share capital. Custodians and Depositories are tasked with
monitoring this 3% threshold, making breaches public before the next trading day
starts. FPIs meeting these conditions won't need to realign their investments or make
additional disclosures unless the 3% limit is continuously met or exceeded over 10
trading days.
Safeguards to address the concerns of the investors on transfer of securities in

dematerialized mode
To prevent fraud and misuse of inoperative demat accounts and harmonize account
status across platforms, SEBI has amended its guidelines dated October 06, 2023.
March 20th, 2024
The decision aims to enhance the security of dematerialized securities transfers,
focusing on investor protection and stringent verification processes. The safeguards
include: emphasizing investor education on DIS preservation, barring pre-signed
blank DIS, mandating immediate reporting of lost DIS, ensuring DIS booklet issuance
through proper channels, limiting loose DIS issuance, implementing checks on
27
For more details, please visit http://www.sebi.gov.in:
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Market Pulse
signature verification, requiring DP cross-checks under certain conditions, and

mandating verification for inactive accounts or significant transactions. These
measures collectively aim to safeguard investor interests and ensure the integrity of
securities transactions.
Introduction of Beta version of T+0 rolling settlement cycle on optional basis in

addition to the existing T+1 settlement cycle in Equity Cash Markets
In January 2023, the MIIs fully implemented the T+1 settlement cycle which started
in a phase-wise manner. Considering the benefits of shortened settlement cycle on
March 21st,2024 cost, time, transparency in charges and enhanced risk management, SEBI approves to
develop a framework for introduction of a Beta version to T+0 settlement cycle in
addition to existing T+1 settlement cycle on optional basis. This Beta version of T+0
settlement cycle will be introduced in equity cash market for a limited set of 25 scrips
along with limited number of brokers.
Global policy developments

SEC Adopts Rules to Enhance and Standardize Climate-Related Disclosures for
Investors28
To address the investor’s demand for more comparable, consistent, and reliable information
to account for the financial effects of climate-related risks and how companies manage those
risks and balance concerns for mitigation of associated costs of the rules, the SEC has
adopted rules to enhance and standardize climate-related disclosures by public companies
and in public offerings. Climate risk disclosures are required to be included in the company’s
SEC filings- annual reports and registration statements for specific companies mandated to
disclose and provide these information’s.
28
https://www.sec.gov/news/press-release/2024-31
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Market Pulse
Annual macro snapshot

FY18 FY19 FY20 FY21 FY22 FY23 FY24* FY25#
National income
GDP (Current) (Rs lakh crore) 170.9 189.0 201.0 198.5 236.0 269.5 293.9 327.7
GDP (Current) Growth (%) 11.0 10.6 6.4 -1.2 18.9 14.2 9.1 11.5
GDP (Constant) Growth (%) 6.8 6.5 3.9 -5.8 9.7 7.0 7.6
GVA (Constant) Growth (%) 6.2 5.8 3.9 -4.2 8.8 7.0 6.9
Agriculture growth (%) 6.6 2.1 6.2 4.0 4.6 4.7 0.7
Industry growth (%) 5.9 5.3 -1.4 -0.4 12.2 2.1 9.0
Services growth (%) 6.3 7.2 6.4 6.4 -8.4 9.2 10.0
Per Capita GDP (Curr) (Rs) 1,31,743 1,44,620 1,52,504 1,48,586 1,74,816 1,98,125 2,12,461
Prices
CPI Inflation (%) 3.6 3.4 4.8 6.2 5.5 6.7
Food & beverages (%) 2.2 0.7 6.0 7.3 4.2 6.7
Core inflation (%) 4.7 5.8 4.0 5.6 6.0 6.1
WPI Inflation (%) 2.9 4.3 1.7 1.3 13.0 9.4
Primary articles (%) 1.4 2.7 6.8 1.7 10.3 10.0
Fuel & power (%) 8.2 11.5 -1.8 -8.0 32.5 28.1
Manuf. prods (%) 2.8 3.7 0.3 2.8 11.1 5.6
Money, banking & interest rates
Money supply (M3) growth (%) 9.2 10.5 8.9 12.2 8.8 9.0
Aggregate deposit growth (%) 6.2 10.0 7.9 11.4 8.9 9.6
Bank credit growth (%) 10.0 13.3 6.1 5.6 8.6 15.0
Non-food credit growth (%) 10.2 13.4 6.1 5.5 8.7 15.4
Cash Reserve Ratio (%, eop) 4.0 4.0 4.0 3.0 4.0 4.5
Bank Rate (%, eop) 6.25 6.50 4.65 4.25 4.25 6.75
Public Finance
GOI rev. receipts growth (%) 4.4 8.2 8.5 -3.0 32.8 9.8 13.3 11.2
Gross tax receipts growth (%) 11.8 8.4 -3.4 0.9 33.7 12.7 12.5 11.5
GOI Expenditure growth (%) 8.4 8.1 16.0 30.7 8.1 10.5 7.1 6.1
Subsidies growth (%) -4.4 -0.7 17.7 189.0 -33.5 14.7 -23.8 -7.0
Interest expense growth (%) 10.0 10.2 5.1 11.1 18.5 15.3 13.7 12.8
External transactions
Exports growth (%) 10.1 8.8 -5.2 -7.1 45.1 6.7
POL exports growth (%) 18.8 24.5 -11.6 -37.6 162.8 43.8
Non-POL exports (%) 9.0 6.6 -4.1 -2.5 33.7 -0.4
Imports growth (%) 21.2 10.5 -7.8 -17.1 56.2 16.3
Non-POL imports growth (%) 20.1 4.6 -7.9 -9.6 45.4 11.6
POL imports growth (%) 25.0 29.9 -7.5 -36.9 96.7 29.1
Net FDI (US$bn) 30.3 30.7 43.0 44.0 38.6 28.0
Net FII (US$bn) 22.1 -2.4 1.4 36.1 -16.8 -5.2
Trade Balance: RBI – (US$bn) -160.0 -180.3 -157.5 -102.2 -189.5 -265.3
Current Acc. Balance (US$bn) -48.7 -57.2 -24.6 24.0 -38.7 -67.0
Forex Reserves (US$bn) 424.4 411.9 475.6 579.3 617.6 578.4
Exchange rate (USDINR) 64.5 69.9 70.9 74.2 74.5 80.4
Source: CMIE Economic Outlook, NSE; *FY24 public finance data are revised estimates and national income data is as per FAE; #FY25 public finance data and national
income data are budget estimates.
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Market Pulse
Our reports on the economy and markets since January 2022

Sr. No. Date Report
1 24-Mar-24 India Ownership Tracker Q3FY24
2 01-Mar-24 Macro Review: Q3FY24 India GDP
3 27-Feb-24 Market Pulse February 2024: On a high: Markets, investors, flows, and Generative AI
4 12-Feb-24 Macro Review: RBI Monetary Policy
5 01-Feb-24 Macro Review: Union Budget FY2024-25
6 26-Jan-24 Market Pulse January 2024: January effect…as January goes, so does the year?
7 22-Dec-23 Market Pulse Nov-Dec 2023: Hope smiles from the threshold of the year
8 15-Dec-23 India Ownership Tracker Q2FY24
9 08-Dec-23 Macro Review: RBI Monetary Policy
10 01-Dec-23 Macro Review: Q2FY24 India GDP
11 30-Nov-23 Q2FY24 Corporate Earnings Review
12 30-Oct-23 Market Pulse October 2023: Israel-Palestine redux, and the need for cooperation
13 06-Oct-23 Macro Review: RBI Monetary Policy
14 05-Oct-23 State of states: Will major states push capex in FY24
15 29-Sep-23 Macro Review: Q1 FY24 India Balance of Payments
16 12-Sep-23 Market Pulse September 2023: India@G20, Nifty@20k
17 01-Sep-23 Macro Review: Q1 FY24 India GDP
18 10-Aug-23 Macro Review: RBI Monetary Policy
19 27-Jun-23 India Ownership Tracker December 2022
20 18-Jul-23 Market Pulse July 2023: A monthly review of Indian economy and markets
21 15-Jul-23 Q4FY23 Corporate Earnings Review
22 28-Jun-23 Macro Review: Q4FY23 Balance of Payments
23 27-Jun-23 India Ownership Tracker December 2022
24 13-Jun-23 Market Pulse June 2023: A monthly review of Indian economy and markets
25 08-Jun-23 Macro Review: RBI Monetary Policy
26 01-Jun-23 Macro Review: Q4FY23 India GDP
27 12-May-23 Market Pulse May 2023: A monthly review of Indian economy and markets
28 12-Apr-23 Market Pulse Apr-May 2023: A monthly review of Indian economy and markets
29 06-Apr-23 Macro Review: RBI Monetary Policy
30 29-Mar-23 India Ownership Tracker December 2022
31 24-Feb-23 Market Pulse February 2023: A monthly review of Indian economy and markets
33 01-Feb-23 Macro Review: Union Budget FY2023-24
34 25-Jan-23 Market Pulse January 2023: A monthly review of Indian economy and markets
35 23-Dec-22 Market Pulse Nov-Dec 2022: A monthly review of Indian economy and markets
237/239
Market Pulse
36 07-Dec-22 Macro Review: RBI Monetary Policy

37 05-Dec-22 Q2FY23 Corporate Earnings Review
38 30-Nov-22 Macro Review: Q2FY23 India GDP
39 21-Oct-22 Market Pulse October 2022: A monthly review of Indian economy and markets
40 30-Sep-22 Macro Review: RBI Monetary Policy
41 28-Sep-22 Market Pulse September 2022: A monthly review of Indian economy and markets
42 22-Sep-22 India Ownership Tracker June 2022
43 26-Aug-22 Market Pulse August 2022: A monthly review of Indian economy and markets
44 25-Aug-22 Q1FY23 Corporate Earnings Review
45 05-Aug-22 Macro Review: RBI Monetary Policy
46 28-Jul-22 Market Pulse July 2022: A monthly review of Indian economy and markets
47 29-Jun-22 Market Pulse June 2022: A monthly review of Indian economy and markets
48 27-Jun-22 Q4FY22 Corporate Earnings Review
49 24-Jun-22 India Ownership Tracker March 2022
50 24-Jun-22 Macro Review: Q4FY22 Balance of Payments
51 08-Jun-22 Macro Review: RBI Monetary Policy
52 03-Jun-22 Macro Review: State Budget Analysis
53 01-Jun-22 Corporate Governance: ESG scores of NIFTY 50 companies
54 01-Jun-22 Macro Review: Q4FY22 India GDP
55 24-May-22 Market Pulse May 2022: A monthly review of Indian economy and markets
56 05-May-22 Macro Review: RBI Monetary Policy
56 29-Apr-22 Market Pulse April 2022: A monthly review of Indian economy and markets
57 11-Apr-22 India Ownership Tracker December 2021
58 08-Apr-22 Macro Review: RBI Monetary Policy
59 03-Apr-22 Macro Review: Q3FY22 Balance of Payments
60 31-Mar-22 Quarterly Briefing: Mandatory Board Governance in India
61 26-Mar-22 Market Pulse March 2022: A monthly review of Indian economy and markets
62 28-Feb-22 Market Pulse February 2022: A monthly review of Indian economy and markets
63 24-Feb-22 Q3FY22 Corporate Earnings Review
64 18-Feb-22 Quarterly Briefing: Related Party Transactions: Implications for Investor Protection
66 01-Feb-22 Union Budget FY2022-23
67 29-Jan-22 Market Pulse January 2022: A monthly review of Indian economy and markets
68 03-Jan-22 Macro Review: Q2FY22 Balance of Payments
238/239
Market Pulse
Economic Policy & Research

Tirthankar Patnaik, PhD tpatnaik@nse.co.in +91-22-26598149
Prerna Singhvi, CFA psinghvi@nse.co.in +91-22-26598316
Ashiana Salian asalian@nse.co.in +91-22-26598163
Prosenjit Pal ppal@nse.co.in +91-22-26598163
Ansh Tayal atayal@nse.co.in +91-22-26598163
Anand Prajapati aprajapati@nse.co.in +91-22-26598163
Shuvam Das shuvamd@nse.co.in +91-22-26598163
Abhijay Nair consultant_anair@nse.co.in
Shantanu Sharma consultant_shantanus@nse.co.in
The support of Mayur Sharma and Shardul Raje is gratefully acknowledged in the preparation of this report.
Disclaimer
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a part of this report shall at all times vest with NSE. No part of this report may be sold/distributed/licensed/
produced/transmitted in any form or manner by any means (including without limitation—electronic, mechanical,
photocopying, recording or otherwise) to any person/entity whatsoever without the prior written permission of NSE.
Extracts from this report may be used or cited provided that NSE is duly notified and acknowledged as the source of such
extract.
This report is intended solely for information purposes. This report is under no circumstances intended to be used or
considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy
any securities or other form of financial asset. The Report has been prepared on best effort basis, relying upon
information obtained from various sources. NSE does not guarantee the completeness, accuracy and/or timeliness of
this report neither does NSE guarantee the accuracy or projections of future conditions from the use of this report or any
information therein. In no event, NSE, or any of its officers, directors, employees, affiliates or other agents are
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Market Pulse - March 2024

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March 2024

Date of release: March 26th, 2024

The subscription link and past editions of Market Pulse can be

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

Published by Economic Policy and Research, National Stock Exchange of

Any/all Intellectual Property rights in this report including without

Figure 114: Gap between wholesale and retail inflation .................................................................................................. 75

NSE’s contribution to the economy

FY20 FY21 FY22 FY23 FY24TD*

Key macro charts

Inflation easing; policy to stay on hold for now

External situation comfortable; rupee stable

Fiscal prudence but with higher capex

Apr Jun Aug Oct Dec Feb

Key market charts

Segment-wise turnover trend *

Net inflows into Indian equities

Story of the month

• FPI ownership declined for the third consecutive quarter:

Annual India Inc. ownership trends

Listed universe ownership trends

Individual investors’ holding remained largely unchanged: Having reached 16-year

FPIs, 18.4 FPIs, 18.2

DMFs, 8.7 Foreign DMFs, 8.8

companies moderated further to a six-quarter low of 11.3% (-19bps QoQ). Overall

Other institutional Other institutional

Long-term ownership trend of the NSE-listed universe

Long-term trend shows a steady drop in promoter ownership during 2009-2019,

Source: CMIE Prowess, NSE EPR.

Source: CMIE Prowess, NSE EPR.

Source: CMIE Prowess, NSE EPR.

Source: CMIE Prowess, NSE EPR.

Source: AMFI, NSE EPR.

Passive DMFs’ ownership moderated in the December quarter: Passive holding of

Figure 19: Annual growth of DMF holding in the NSE-listed universe

100.0 84.4 83.4

Figure 20: CAGR of DMF holding in the NSE-listed universe

70.0 Active Passive Total

20.0 15.4 14.3 15.2

Figure 24: Annual net FII inflows trend

Direct participation by individual investors came off in the December quarter:

Cons. Disc. 12.1

Comm Svcs. 3.4

Nifty 50 ownership trends

Individual investors’ ownership moderated in Nifty 50: Individual investors’ share in

increased by 14bps QoQ to 79.8%. The ownership of other non-institutional non-

Banks, FIs &

Source: CMIE Prowess, NSE EPR.

Source: CMIE Prowess, NSE EPR.

Source: CMIE Prowess, NSE EPR.

Sector-wise ownership of the Nifty 50 universe (December 2023): In the quarter

6.0 15.0 9.3

DMFs’ exposure to Financials continued to decline: Even as DMFs retained their OW

0 10 20 30 40 -400 -300 -200 -100 0 100 200 300 400

Figure 52: DMF vs Nifty 50—Sector-wise OW/UW trend (bps)

Communication Services Consumer Discretionary Consumer Staples Energy

FPIs maintained their outsized OW on Financials and UW on Consumer Staples:

Cons. Disc. 8.2

Cons. Staples 5.8 Dec-23

Comm Svcs. 3.3

Utilities 2.7 -341

Materials 7.1 -27

Cons. Staples 9.2 Healthcare -35