According to Motilal Oswal’s latest report, cash and F&O activity fell sequentially in December even as SIP flows hit new highs and commodity trading soared to new highs.The brokerage noted that a stable trajectory in mutual fund flows and rising retail participation in commodities will bode well for asset managers and support the performance of market intermediaries.
Retail activities are seeing a sequential decline
Motilal Oswal reported that the total average daily turnover (ADTO) for December 2025 remained stable month-on-month (MoM) at Rs 473.1 trillion. However, the underlying components showed weakening trends:
The ADTO cash segment fell 10% month-on-month to Rs 1.01 trillion.
ADTO option premium fell 8% month-on-month to Rs 679 billion.
Retail cash ADTO fell 6% month-on-month to Rs 375 billion.
Retail futures and premium ADTO saw an MoM decline of 11% to Rs 580 billion.
In terms of market share, NSE continued to dominate the cash segment with a 93% share. In F&O, BSE’s notional market share stood at 42.6% in December, up from 43.5% in November, while its premium revenue share rose from 25.9% to 27.7%.
SIP inflows reach new peaks, AUM stable
Even as equity trading slowed, SIP flows hit a new record of Rs 310 billion in December 2025, compared to Rs 294 billion in November. The monthly average assets under management (MAAUM) for the mutual fund industry remained stable at Rs 82 trillion, registering an increase of 18% year-on-year.
Shares of MAAUM also remained steady at Rs 35.5 trillion, with Motilal Oswal noting that “stable mutual fund flows and the SIP trajectory will bode well for asset managers” going forward.
Trading volumes in commodities are increasing
The commodity derivatives segment emerged as the star performer in December. Total volumes on MCX rose 20% month-on-month to Rs 178.6 trillion, with:
The number of options rose 17% month-on-month to Rs 157.9 trillion, and
Futures volumes rise sharply by 51% MoM to Rs 20.7 trillion.
Notably, the base metals ADTO rose 290%, while precious metals and energy options rose 8% and 2% respectively. The premium to sales ratio also improved to around 1.1% in December, compared to around 0.96% in the previous month, indicating increasing depth in the segment.
IPO momentum continues, demat additions improve
The primary market remained active in December, with 11 IPOs raising Rs 219 billion, continuing the momentum of previous months.
On the investor side, additions to demat accounts rose to 3.2 million in December from 2.7 million in November. The total number of demat accounts in the country stood at 216 million, reflecting a 17% year-on-year growth, with CDSL holding an 80% market share.
Summary
While retail equity participation declined in December 2025, rising SIP flows and increased commodity trading indicate continued investor engagement through alternative market opportunities. Motilal Oswal notes that the combination of stable cash flows, robust IPO activity and record commodity volumes could continue to support capital market intermediaries.
Also read | Mutual funds increased cash allocation by over Rs 5,900 crore to Rs 2.07 lakh crore in December
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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