Margin trade back to September high as worries recede

Stock market investors expecting near-term stock price gains are taking more leveraged bets through margin trading, putting concerns over global and domestic headwinds behind them.

- Srushti Vaidya

MUMBAI: 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, close to the ₹81,728 crore level 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 Mazagon Dock Shipbuilders were the most popular among retail investors and HNIs for margin trading, 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.