Foreign Investors Log Record Share In Commodity Options, Equity Cash Participation Hits 12-Month High, Says NSE Report

Foreign investor participation in options in the commodity derivatives segment rose to 12.70 per cent in November 2025, marking the highest share since the introduction of commodity options. This increase came even as domestic participants continued to dominate overall activity. The combined share of proprietary traders and individual investors, together accounting for over 80 per cent of trading volumes, edged lower during the month.

Individual investor participation in commodity options slipped to a four-month low, while the share of proprietary traders declined to an all-time low, reflecting some moderation in domestic risk-taking. The contrasting trend between options and futures was evident. Proprietary traders retained a firm grip on commodity futures, with their share climbing to 85.50 per cent in November, the highest in nine months, according to data from the NSE’s Market Pulse.

Participation by foreign investors and individual traders, who typically remain more active in options, stayed limited in the futures segment, underscoring a clear preference divergence between market participants.

A similar shift in participation was visible in the equity cash market. Foreign investors’ turnover rose sharply by 28.90 per cent month-on-month (m-o-m) in November, lifting their share in the overall cash market turnover by 441 basis points (bps) to 17.20 per cent. This marked the highest foreign investor share in equity cash trading over the past 12 months.

In contrast, turnover by individual investors and proprietary traders declined by 10.40 per cent and 9.60 per cent m-o-m, respectively. As a result, the share of individual investors in equity cash trading eased to 32.50 per cent in November, lower than the FY26 average of 34.10 per cent. Proprietary traders accounted for 29.90 per cent of turnover during the month, a level marginally higher than the fiscal-year average, even though their activity declined on a m-o-m basis.

Domestic institutional investors (DIIs), meanwhile, continued to provide stability to the market. Barring May 2025, DIIs have consistently held a share of about 14 per cent in equity cash trading so far this financial year, compared to 11.80 per cent during the corresponding period last year. The higher and more stable participation was seen due to steady inflows through systematic investment plans (SIPs) into mutual funds.

Taken together, NSE’s November data indicates a pick-up in foreign investor activity, especially in options and cash equities, while domestic participation showed some cooling across segments