Retail Investors Return To Equities With ₹35,328 Crore Buying In June Quarter

Retail investors stepped up participation in the Indian equity market during the April-June quarter, purchasing shares worth ₹35,328 crore, according to NSE data. The buying marked the strongest quarterly inflow from individual investors since the October-December 2024 period, when retail investors had invested around ₹56,126 crore.

The latest figures indicate a notable increase in retail participation after subdued activity earlier in the year. Individual investors purchased shares worth ₹18,222 crore in April, ₹3,018 crore in May and ₹14,088 crore in June. The combined investment came despite continued net selling by foreign institutional investors (FIIs) and uncertainty in global markets.

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Buying Rebounds After Weak Start To The Year

Retail participation had remained limited during the initial months of 2026. NSE data showed that investors had bought shares worth only around ₹2,750 crore during the January-March quarter. Earlier, they had been net sellers of equities worth ₹25,615 crore after the beginning of 2025.

The return of retail buying coincided with a strong recovery in domestic equity markets during the April-June period. Benchmark indices recorded their best quarterly performance in a year, while broader market indices posted even stronger gains.

During the quarter, the Sensex advanced 6.3%, while the Nifty 50 gained 6.9%. BSE 150 MidCap index gained by 16.7%, the highest quarter-on-quarter gain since June 2024. The BSE 250 Small Cap index gained by 24.5%, the highest quarter-on-quarter gain since June 2020, while the BSE 250 Micro Cap index gained by 30%, the highest ever since the inception of the index in March 2025.

Domestic Liquidity Offsets Foreign Selling

The broader market remained resilient even as FIIs continued to reduce exposure during much of the quarter. Domestic liquidity helped absorb foreign selling, supported by steady inflows into mutual fund systematic investment plans (SIPs), purchases by domestic institutional investors and higher participation from retail investors.

The combined market capitalisation of all companies listed on the BSE increased by 15% during the quarter, reflecting the strength of the market recovery across sectors and market capitalisation segments.

Policy Measures And Global Developments

Speaking to Moneycontrol, Saurabh Jain, Head of Fundamental Research at SMC Global Securities, said the renewed buying reflected the deployment of capital rather than short-term bargain hunting. He added that easing geopolitical concerns, lower crude oil prices and policy measures announced during June supported market sentiment.

According to Jain, steps announced by the Reserve Bank of India and the government, including changes related to foreign investment and bond markets, helped stabilise broader financial conditions.

Also speaking to Moneycontrol, Aakash Shah, Technical Analyst at Choice Broking, said benchmark indices remained volatile during the quarter, but several large-cap and quality mid-cap stocks held key long-term support levels. He noted that recoveries after market corrections were accompanied by higher trading volumes, indicating sustained investor participation through the quarter.