Prop firms edge out retail investors in NSE cash market
For the first time since 2003, proprietary (prop) trading firms have edged out regular retail investors in the NSE cash market.
In January 2026, prop traders handled 34.3% of all equity cash turnover—more than retail's 32.5%.
It's a sign that big trading firms are taking over as everyday investor activity cools off.
Retail participation is dropping
The NSE saw its highest cash turnover in 16 months—₹23.92 trillion in January—with most of that growth coming from prop firms, not individual investors.
Retail participation is dropping: retail trading volumes have slowed and fallen about 20% year-on-year and average trade sizes have reached a 56-month high, making it tougher for smaller players to keep up.
Market volatility spiked this January
Market volatility spiked this January, with the Nifty 50 swinging 5.5% during the month (high on 5 Jan, low on 27 Jan) amid market anticipation of a US-India trade deal.
These swings coincided with increased activity from fast-moving prop firms and greater concentration among larger traders.