Mumbai: Retail investors returned to the secondary market in September after sitting out two months on the trot, buying equities worth ₹10,572 crore as an oil spike induced a sharp market correction after the first week.
Buying in the primary market continued for the ninth straight month.
Retail investors' secondary-market purchases were their highest since June, when they bought equities worth ₹19,046 crore. They had sold shares worth ₹3,721 crore in July and ₹1,983 crore in August, NSE data showed.
AgenciesIn the primary market, retail investors bought shares worth ₹5,650 crore in September, compared with ₹6,791 crore in July and ₹5,827 crore in August.
"September's retail buying was a classic buy-the-dip response, not a return of speculative froth," said Akshat Garg, head of research & product at Choice Wealth. Retail investors stepped back in at lower prices after selling in July and August, even as foreign portfolio investors (FPIs) were heading for the exit, he said.
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The Sensex and Nifty fell about 6% in September, their sharpest monthly decline since March, and were down nearly 14% in 2026.
So far this year, retail investors have bought equities worth ₹47,556 crore in the secondary market and ₹19,382 crore in the primary market, taking their combined purchases to ₹66,938 crore.
Retail participation in the primary market has remained strong, with close to 30 mainboard companies listing in September. The IPO index was among the few to end the month in positive territory.
"Buying may continue selectively, supported by a strong IPO pipeline and domestic investor confidence," said Ravi Singh, chief research officer at Master Capital Services. However, valuations, corporate earnings, crude oil prices, foreign investor outflows and global uncertainty could influence participation, he said. Sustained buying will depend on market performance and the availability of attractive opportunities in both the primary and secondary markets.
With foreign portfolio investors pulling out more than ₹44,000 crore in October alone, market volatility remains a key consideration. Experts advise investors to stagger their investments, prioritise companies with visible earnings growth and assess IPOs on business quality rather than potential listing gains.