Summary of this article
ETF turnover more than doubled y-o-y in August as gold demand increased
REITs recorded the sharpest turnover growth, rising over 224 per cent monthly
Mainboard equity turnover eased as investors faced market uncertainty and more IPOs
Trading activity in exchange-traded funds (ETFs), real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) rose sharply on the National Stock Exchange (NSE) in August 2026, even as turnover in mainboard equities moderated from the previous month.
NSE’s average daily turnover (ADT) in ETFs increased 11.4 per cent month-on-month (m-o-m) to Rs 3,498 crore in August, compared with Rs 3,141 crore in July. On a year-on-year (y-o-y) basis, it more than doubled, rising 112.4 per cent from Rs 1,647 crore in August 2025.
REITs recorded the sharpest monthly increase. Their ADT surged 224.5 per cent m-o-m to Rs 212.7 crore from Rs 66 crore in July. Turnover was up 101.5 per cent y-o-y from Rs 105.5 crore.
InvITs also saw higher trading activity, with ADT rising 19.4 per cent m-o-m to Rs 94.6 crore. Their turnover was 123.1 per cent higher than the Rs 42.4 crore recorded in August last year.
Mainboard equities, however, saw a modest pullback. ADT declined 1.1 per cent m-o-m to Rs 1,15,536 crore, against Rs 1,16,863 crore in July. Turnover remained 26.4 per cent higher y-o-y.
Why Did REITs and InvITs See Higher Turnover
The higher turnover in REITs and InvITs comes amid a growing number of mutual fund products offering investors exposure to the segment.
Edelweiss Mutual Fund launched the Edelweiss Nifty REITs & Realty Index Fund in July, with its NFO open from August 5 to August 19. The fund tracks the Nifty REITs & Realty Total Return Index, which has around 60 per cent exposure to REITs and 40 per cent to realty stocks.
WhiteOak Capital also entered the space through its Dividend Yield Fund. Launched in August, the scheme can invest up to 60 per cent of its portfolio in REITs and up to 10 per cent in InvITs.
Regulatory changes have also made REITs more accessible to mutual funds. In November 2025, Sebi reclassified REITs as equity-related instruments for mutual funds and Specialised Investment Funds (SIFs). The change came into effect from January 1, 2026, allowing mutual funds to count REIT investments within their equity-related investment limits. InvITs, however, remain classified as hybrid instruments for this purpose.
ETF Turnover Rises As Inflows Into Gold ETFs Increase
ETF trading activity jumped in August as investors increased their exposure to exchange-traded products, with gold ETFs drawing a significant chunk of the inflows. ETFs attracted Rs 10,160.87 crore in August, with gold ETFs accounting for Rs 2,596.70 crore, up from Rs 1,558.75 crore in July.
The surge came as gold prices rallied sharply. Gold futures on the Multi-Commodity Exchange of India (MCX) gained more than 7.70 per cent in August.
Mainboard Equity Activity Moderates
Meanwhile, mainboard equity turnover slipped slightly in August from July’s level, amid uncertainty over the West Asia crisis and volatility in crude oil prices. Higher US Treasury yields also weighed on investor sentiment, while the busy primary market offered investors a growing number of new issues to consider.
The primary market was busy in August, with 25 initial public offerings (IPOs) raising funds from investors. Of these, 18 mainboard IPOs raised Rs 28,976 crore, up 58 per cent from July, while seven NSE Emerge IPOs raised Rs 565 crore, a 151 per cent jump from the previous month. The increase in primary-market activity likely has temporarily redirected some investor liquidity from secondary-market trading towards IPO subscriptions.
