India financial markets: Retail F&O losses fall as SIP inflows hit four-month high

Indian financial markets show divergent trends across retail trading, mutual funds, and banking. Retail losses in equity futures and options (F&O) fell 18% year-over-year to approximately Rs 916.85 billion for the fiscal year ending March 2026. This decline follows regulatory interventions by the Securities and Exchange Board of India (SEBI) aimed at curbing excessive speculation, which also resulted in a 20% drop in the number of individual traders. However, the average loss per remaining retail trader increased to Rs 116,654.

In contrast, the mutual fund industry saw robust growth. Systematic Investment Plan (SIP) inflows reached a four-month high of Rs 31,961 crore in July 2026, a 12.3% increase year-on-year. Total mutual fund assets under management rose to Rs 85.76 lakh crore, with small-cap funds attracting the highest equity inflows.

In the real estate sector, luxury independent floor prices in South Delhi rose by up to 21% year-on-year in the April-June 2026 quarter, driven by demand from high-net-worth individuals and non-resident Indians. Meanwhile, HDFC Bank's share price hit a two-year low of Rs 726.50, underperforming the broader market as foreign investors continued to reduce their holdings for a fifth consecutive quarter.