Retail investors are betting big on underperforming stocks using MTF
Indian retail investors have ramped up borrowing through margin trading facilities (MTF) to buy big-name stocks that haven't been performing well.
With MTF, you only need to put down 20-25% of the money—the rest gets covered by brokers, but at a steep 9-15% annual interest.
Despite falling stock prices, these underperformers are still drawing in plenty of buyers.
MTF trades have increased by over 50% in 6 months
From April 2025 to October 2025, the total value of MTF trades on the National Stock Exchange soared from ₹68,004 crore to nearly ₹99,000 crore—even though the Nifty 50 index slipped by 1.4% over the past year.
This signals that retail investors are taking bigger risks and could face margin calls if prices drop further.
Investors are making risky bets on Jio Financial, TCS, Tata Motors
Many investors are hoping for quick rebounds and using borrowed money to boost potential returns over two or three months—just as long as gains outpace interest costs.
But analysts warn: if prices keep sliding, losses can pile up fast and trigger forced selling.
The biggest bets right now? Jio Financial Services, TCS, Tata Motors, and Reliance Industries.