India’s combined margin trading book slipped from its September record by Oct. 21, while small-cap stocks made up nearly half of its size-classified portion, data from IndiaMTF showed.
IndiaMTF, which compiles daily disclosures from the National Stock Exchange of India (NSE) and BSE, put the total at ₹154,991 crore (about ₹1.55 trillion) at the Oct. 21 close. That was ₹3,725 crore, or 2.35%, below the Sept. 30 record of ₹158,716 crore.
On Oct. 19, small caps represented 49.2% of the book portion with a size classification; that portion covered 93% of the total. IndiaMTF counted 728 small-cap stocks with margin positions. The group made up 20.1% of free-float market capitalization, so its share of classified financing was 2.45 times its market-cap share.
Bloomberg separately reported a 46% small-cap share in the margin book. Its report did not identify a basis comparable with IndiaMTF’s figure, which covers only the size-classified portion.
NSE Indices data show total returns through Sept. 30 of 4.57% for the Nifty Midcap 150 and 7.23% for the Nifty Smallcap 250, against a 7.09% decline for the Nifty 50. The comparison covers the year ended Sept. 30, as EconoTimes previously reported in its review of India’s mid- and small-cap index gains.
Investors using India’s Margin Trading Facility (MTF) buy eligible shares with a mix of their own funds and broker credit. Those shares secure the financing, and the client pays interest on the amount financed. A fall below the funded cost triggers a mark-to-market margin collection requirement for the broker under NSE rules. Leveraged clients absorb losses on their holdings, continue to owe interest and may have to provide extra margin.
IndiaMTF data show the book increased each month from April through September. It totaled ₹156,151 crore on Oct. 19, ₹2,565 crore, or 1.6%, below Sept. 30. The Oct. 21 figure is a month-to-date reading; IndiaMTF is expected to publish its October review after the month ends.
