
Borrowed time: Investors bullish on near-term upside increase leveraged bets on Tata Motors, SBI, HAL, Jio Financial
Mumbai: Indian investors are taking on more leveraged bets in the equity markets through margin trading, suggesting a near-term upside, as they put concerns over global and domestic headwinds behind them.
Margin trading, which allows investors to borrow funds to buy or sell securities without paying the full amount upfront, has rebounded to levels last seen during the previous market peak in September, driven by improved sentiment among retail investors and high net-worth individuals.
The National Stock Exchange of India's Margin Trading Facility book stood at ₹81,217 crore as of 6 June, almost at the level of ₹81,728 crore on 26 September. The amount had declined to ₹68,004 crore on 7 April, when the Nifty 50 index declined 3.24% in a single day on the back of fears of a global trade war.
Shares of Tata Motors, Jio Financial Services, Hindustan Aeronautics, State Bank of India, and Mazagaon Docks were the most popular among retail investors and HNIs through the MTF route, the NSE data showed. The amount financed for Tata Motors as of 6 June was ₹1,282 crore, while it was ₹1,119 crore for Jio Financial Services and ₹1,055 crore for Hindustan Aeronautics.
Also Read | How gains through margin trading facility transactions are taxed in India
Experts said that the increase in the MTF book shows that investors are taking a positive near-term view of the markets. The recent Reserve Bank of India 50 basis point repo rate cut will also allow brokers, who provide this facility to clients, more room to pass on the benefits to investors. By maintaining their spreads and offering lower rates, brokers are expected to attract greater participation in margin trading.
Tariffs, border tension
Nirav Karkera, head of research at wealth tech platform Fisdom, said that a combination of domestic and global headwinds had earlier weighed on investor sentiment. Globally, risks were mounting with the prolonged Russia-Ukraine conflict and tariff-related uncertainties, he said, adding that on the domestic front, border tensions added to the anxiety.
'Domestic inflation wasn't easing, there was no clarity on the interest rate trajectory, and corporate earnings were dismal," said Karkera. 'There was little reason for optimism in the markets, and more than enough for investors to go light on leveraged positions through MTF."
Karkera also said that MTF is highly sensitive to interest rates.
Also Read | The Reserve Bank's growth stimulus is a bold bet on price stability
'When the borrowing rates come down after the 50-basis points rate cut—it could further boost interest in MTF. While a cut in the repo rate doesn't immediately reduce MTF rates, it does lower the cost of funds for brokers, who may then refinance at lower rates," he said.
On 6 June, the RBI's six-member Monetary Policy Committee slashed the repo rate to 5.5%, its third consecutive cut since February.
Positive sentiment
Others said the MTF book is a gauge of market sentiment. Feroze Azeez, joint chief executive officer at Anand Rathi Wealth Ltd, said the MTF book should be seen more as a barometer of broader market sentiment than a reliable indicator of market direction. Azeez said that after months of volatility, investors have started becoming a lot more mature.
'The buy-on-dip strategy has become popular, and with easier access to leverage, more investors are using MTF to build positions, which also shows positive conviction in the market," said Azeez. He added that people are taking a view that the markets will continue to do well, at least in the near term.
Also Read | Sebi seeks more details from bourses before options date shift
The market's decline after September 2024 also coincided with a shift in the futures and options expiry structure, which led to a decline in derivative volumes, according to Trivesh D, chief operating officer at trading platform Tradejini.
However, as the market began recovering in February, there was a resurgence in both F&O and cash market volumes. This uptick in trading activity improved price discovery, further driving investor participation in margin trading, he added.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


India Gazette
an hour ago
- India Gazette
Centre reduces basic custom duty on major imported crude edible oils from 20% to 10%
New Delhi [India], June 11 (ANI): The central government on Wednesday reduced Basic Custom duty (BCD) on major imported crude edible oils from 20 per cent to 10 per cent. The Ministry of Consumer Affairs, Food and Public Distribution said in a release that the Centre has reduced the Basic Customs Duty on crude edible oils - crude sunflower, soybean, and palm oils - has been reduced from 20% to 10% resulting in the import duty differential between crude and refined edible oils from 8.75% to 19.25%. This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices. An advisory has been issued to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers, the release said. It said 19.25 % duty differential between crude and refined oils will help to encourage domestic refining capacity utilization and reduce imports of refined oils. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced duty will also encourage domestic refining and maintain fair compensation for farmers. The revised duty structure will discourage the import of refined palmolein and redirect demand towards crude edible oils especially crude palm oil, thereby strengthening and revitalizing the domestic refining sector. 'This significant policy intervention not only ensures a level playing field for domestic refiners but also contributes to the stabilization of edible oil prices for Indian consumers,' a release said. A meeting with leading Edible Oil Industry Associations and industry was held under the Chairmanship of Secretary, Department of Food and Public Distribution, and advisory was issued to them to pass on the benefits from this duty reduction on to consumers. Industry stakeholders are expected to adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower landed costs with immediate effect. The Associations have been requested to advise their members to implement immediate price reductions and share the updated brand-wise MRP sheets with the Department on a weekly basis. DFPD shared the format with edible oil industry for sharing the reduced MRP and PTD data. 'The timely transmission of this benefit to the supply chain is imperative to ensure that consumers experience a corresponding decrease in retail prices,' the release said. This decision comes after a detailed review of the sharp rise in edible oil prices following last year's duty hike. The increase led to significant inflationary pressure on consumers, with retail edible oil prices soaring and contributing to rising food inflation. (ANI)


India Gazette
an hour ago
- India Gazette
Indian Oil quadrupled fuel supply for armed forces during Operation Sindoor: Senior official
By Shafali Nigam Port Blair (Andaman and Nicobar) [India], June 12 (ANI): Indian Oil ensured seamless fuel supply to the Indian armed forces during Operation Sindoor from Andaman and Nicobar Islands, which went up at least four times, said Rakesh Kumar, Chief Terminal Manager (CTM) of Indian Oil Corporation (IOC). 'During Operation Sindoor, the demand from defence has gone up at least four times, and we were there to supply the product just as I told you earlier. We positioned our vessels from Paradip and Haldia refineries and met their demands just in time,' Indian Oil Corporation CTM said. Mentioning the demand during Operation Sindoor, he said, 'In case of need, just like a few months back, at the demand of the Indian Navy, we positioned our vessels from Paradip refinery and Haldia refinery at a notice of just three days.' Indian Oil demonstrated its strategic preparedness and operational efficiency and played a pivotal role in ensuring uninterrupted fuel supply during Operation Sindoor, the official said, adding that despite a fourfold increase in fuel demand from defence establishments, the state-owned oil PSU successfully met requirements by mobilising vessels from its mainland refineries within days. 'We have a very high level of good coordination with defence, almost on a daily basis. Since they are taking products from us, they have requirements. We interact with them on a weekly basis, and we hold meetings with their supply department as well,' he said about coordination with defence and security agencies in fuel supply or infrastructure planning. During a field visit to the Indian Oil POL Terminal in Port Blair, organised by the Ministry of Petroleum & Natural Gas for the press, when asked if there are any protocols in case of an emergency situation, Kumar said, 'In case of need, just like a few months back, at the demand of the Indian Navy, we positioned our vessels from Paradip refinery and Haldia refinery at a notice of just three days.' 'We are at the smart terminal of Indian Oil. Here, we have a tanking of 27,000 KL. We are dealing with four products over here, which are petrol, diesel, low-sulphur HFHSD and HSD,' he added. In response to the questions on emergency protocols in place for fuel shortages or natural disasters like cyclones or tsunamis, he said, 'We have emergency protocols. Sufficient tankage is there. On average, we have 25 days of coverage for all the products.' He said the state-run oil major is planning to expand services or upgrade existing infrastructure in the Andaman and Nicobar Islands. 'We have plans. This terminal is a 27 TKL terminal and a POL terminal. We have requested one more station and we are in an advanced stage of getting new land in Hope Town, where our bottling plant is situated,' he added. Speaking with ANI, V. Ranganathan, Chief General Manager from West Bengal State Office and Port Blair said, 'Port Blair is one of the unique locations where a lot of challenges are there with respect to logistics, as well as product availability.' (ANI)


India Gazette
an hour ago
- India Gazette
India-EU FTA will be a great enabler, says Goyal; pitches for stronger economic ties with Sweden
Stockholm [Sweden], June 11 (ANI): The proposed India-European Union Free Trade Agreement (FTA) will be a great enabler, Union Commerce and Industry Minister Piyush Goyal has said, adding that India will be able to offer greater opportunities for Sweden. Attending India-Sweden Business Delegation meetings in Stockholm, Union Minister Goyal said, India and Sweden complement each other. 'The India-EU Free Trade Agreement is clearly going to be a great enabler... We do hope to be able to offer you a better pathway and greater opportunities in the future... I can assure you that we are making good progress and are deeply committed to strengthening this partnership, working together.' The Minister also highlighted India's growth prospects. 'Today, amongst all the investment opportunities available anywhere in the world, I dare say the market of 1.4 billion aspirational Indians can beat any other opportunity. When 1.4 billion Indians take one step forward, our country takes 1.4 billion steps forward. That is the spirit in which the Indian growth story is powering on,' said Goyal. Inviting the business community to invest in India, Goyal further added, 'We would like to invite all the distinguished business leaders of Sweden to come to India to experience our country. I am sure this tested partnership can really grow beyond the frontiers of what we have achieved so far.' With over 280 Swedish companies in India and 80+ Indian companies in Sweden, the potential for collaboration is immense. H said the proposed India-EU FTA has huge potential. 'There's huge potential awaiting all of us. We complement each other. Sweden and India, working as friends, as trusted partners, can transform the Indian economy; the Indian growth story can support the Swedish plans for the future.' Goyal said India is not only the largest and fastest-growing economy but it will continue to grow for the next 20-30 years. He highlighted that India has one of the lowest inflation rates and strong forex reserves. Citing the favourable business ecosystem, he appealed to the investor community to make investments in India. Goyal reached Sweden after finishing his two-day official visit to Switzerland. Apart from other engagements, he will engage with the Indian diaspora and address media interactions, further strengthening the people-to-people connections and communicating the vision for the India-Sweden partnership. (ANI)