D-Street's margin-funded stock bets fall as smallcap rally falters

Retail traders in India are reducing their leveraged bets on stocks as the market shows a decline. Margin-funded borrowed positions recently dropped to Rs 1.56 trillion, after hitting a record high in September.

The NSE 500 Index has fallen almost 9% from its peak, pulling small- and mid-cap stocks down significantly. The smallcap rally that had supported leveraged trading has faltered.

Higher interest rates and persistent oil prices have added further pressure on the equity market, weighing on sentiment among traders who had borrowed to buy shares.