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MARKET MOVES

Why traders are moving away from equity F&O to commodities? Nithin Kamath explains

·Economic Times·Impact 3/5 · Notable

Traders in India are shifting their focus from equity futures and options to commodities, with a significant increase in commodity derivatives traders. This trend is evident in the numbers, with a 62% surge in commodity derivatives traders to 21 lakh in the fiscal year 2026. In contrast, equity futures and options participants fell by 20% to 85 lakh.

Read the source report: Economic Times →

Why it matters

Commodity derivatives traders in India surged nearly 62% to 21 lakh in FY26, while equity F&O participants fell 20% to 85 lakh. This shift is likely due to changing market conditions and investor preferences.

Market impact

Impact score
3 / 5
Market signal
Positive / risk-on
Category
Market moves
Model confidence
70%

Markets & countries in focus

India

Transmission channels

Commodity prices rise→Investors seek alternatives→Commodity derivatives trading→Equity F&O trading declines

Likely winners & losers

Winners

  • Commodity traders
  • Derivatives exchanges

Under pressure

  • Equity F&O traders
  • Brokerages

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.