Traders blink! India's stock investors choose Warren Buffett-style ownership in volatile FY26

Indian investors showed a stronger preference for owning stocks over quick intraday trades in FY26, even as markets faced foreign outflows, geopolitical shocks and a correction from record highs. According to Sebi Annual Report 2025-26, the delivery-to-traded quantity and value ratios in the cash market rose to around 30% during the year. The shift is similar to many market veterans including Warren Buffett, who often argued that real wealth is usually made by owning good businesses through volatility, not by chasing every short-term move.

Sebi said this pointed to an improvement in the quality of market participation and showed a growing preference for asset ownership over speculative intraday activity. The shift came in a difficult year for Indian equities. The Nifty touched a record high of 26,328 in early January 2026, but later corrected 15.2% from its peak due to geopolitical tensions in the Middle East.

The index ended FY26 with an annual decline of 5.1%. In dollar terms, the fall was steeper at 13.9%, hurt by both market weakness and a sharp fall in the rupee.


Investors held through volatility

The rise in delivery ratios suggests more investors were buying shares for holding rather than only trading for short-term price moves. In market terms, delivery trades are usually seen as a stronger signal of ownership. Intraday trades are squared off within the same day, while delivery trades move into the investor’s demat account. A higher delivery ratio means a larger part of trading activity is turning into actual stock ownership.

This happened even as overall cash market activity cooled. Total exchange turnover in the cash equity segment fell 6.8% to Rs 280 lakh crore in FY26. SEBI said the moderation was influenced by valuation concerns and a shift in some retail savings toward safe-haven assets such as gold and silver.

Retail base keeps expanding

The deeper holding behaviour also fits into a larger retail trend. Total demat accounts rose to 22.5 crore, supported by simpler digital onboarding and mobile trading apps offered by discount brokers.

At the same time, domestic institutional investors acted as a major shock absorber. DIIs recorded net inflows of Rs 8.5 lakh crore in FY26, helped by steady mutual fund SIP flows. Their equity ownership rose to an all-time high of 17% by March 2026, while FPI ownership dropped to a 15-year low of 15.8%.

Speculation cools in F&O

The shift away from pure short-term trading was also visible in derivatives. Options contract volumes fell 51.5% after Sebi tightened rules through larger contract sizes, rationalised weekly expiries, upfront premium collection and higher securities transaction tax.

The message from FY26 is clear. Indian investors did not disappear when markets turned volatile. Many traded less aggressively, bought more for delivery and kept money flowing through domestic institutions. In a year when foreign investors pulled back, local investors behaved more like owners than punters.