Indian retail investors are carrying record leverage into the stock market just as cash market momentum begins to weaken, raising the stakes if volatility returns or the recent rally reverses. The average Margin Trading Facility (MTF) book surged 57.6% from a year earlier to an all-time high of Rs 1.36 lakh crore in June, according to CareEdge Ratings. It expanded another 7.1% from May after growing 11.1% in the previous month, reflecting sustained investor appetite for buying stocks through leveraged positions.
The rapid increase has turned MTF into a preferred financing avenue for equity trading and an increasingly important revenue driver for stockbrokers. But the expansion is unfolding against a less supportive trading backdrop.
