Summary of this article
NSE average trade size fell 12.7 per cent to Rs 28,921 in September
NSE cash turnover hit a seven-month low, while BSE turnover rose
Record FPI outflows and global uncertainty kept investors cautious
The average trade size on the NSE fell to a 17-month low in September 2026, as weak market sentiment weighed on cash market activity. The average trade size on the BSE also declined, even as its daily turnover increased. The average trade size on the NSE dropped 12.70 per cent month-on-month (m-o-m) to Rs 28,921 in September from Rs 33,114 in August. It was the lowest since April 2025, when the figure stood at Rs 27,886.
The average daily turnover in the NSE cash market segment fell 4 per cent to Rs 1,14,839 crore in September from Rs 1,19,681 crore in August, marking a seven-month low. In February 2026, the figure was Rs 1,14,647 crore.
On the BSE, average trade size declined 3.90 per cent to Rs 27,377 in September from Rs 28,489 in August. However, average daily turnover rose 4.60 per cent to Rs 11,081.50 crore from Rs 10,590.64 crore over the same period.
The BSE bucked the trend, with average daily turnover rising in September, even as the average trade size fell. On the NSE, both measures declined, indicating a broader slowdown in cash market activity.
The weakness came as benchmark indices, the Nifty 50, and the Sensex fell 6 per cent and 5.82 per cent in September, respectively, marking their second consecutive month of losses. Uncertainty over the West Asia crisis, rising US Treasury yields, a weakening rupee and concerns over crude oil prices kept investors cautious.
Foreign portfolio investors (FPIs) withdrew around Rs 35,861 crore from Indian equities in September. So far, till October 9, the FPI selling was Rs 44,166 crore, taking their total year-to-date selling to a record Rs 3,04,468 crore.
Selling was concentrated largely in large-cap stocks, putting pressure on the benchmark indices. As US bond yields climbed, investors found better returns in American debt, reducing the appeal of Indian equities and other emerging markets.
Concerns over higher crude oil prices also added to the pressure, as rising import costs could fuel inflation and squeeze corporate margins.
With the market struggling to recover, investors appear to be holding back on fresh bets in individual stocks. Some retail investors may also prefer mutual funds and systematic investment plans (SIPs) rather than pick stocks themselves. A revival in trading activity will likely depend on whether market sentiment improves, foreign investors return and concerns over US bond yields and crude oil prices ease.
