Record Leverage Despite Volatility
Indian Markets Hit ₹1.17 Lakh Cr MTF Milestone
Stock Market Update | January 5, 2026 | By Employment News Alerts
Market Snapshot
Indian equity benchmarks closed lower amid volatility, but investor leverage hit record highs with Margin Trading Facility (MTF) volumes reaching ₹1,17,480 crore in December 2025—nearly double from ₹57,018 crore in January 2024. [web:1] [web:5]
Sensex fell 0.38% to 85,439.62, Nifty down 0.30% to 26,250.30, led by IT sector declines, yet MTF signals strong risk appetite despite U.S. tariff warnings from President Trump. [web:1]
Leverage Surge Explained
- MTF first crossed ₹1 lakh crore in September 2025, now at historic ₹1.17 lakh crore amid regulated leverage preference. [web:2] [web:5]
- Brokers offer 3-4x leverage at 9-15% interest; amplifies gains/losses, popular post-SEBI F&O curbs. [web:6]
- Top MTF stocks: Jio Financial (₹1,416 cr), TCS (₹1,366 cr), Tata Motors (₹1,388 cr). [web:6]
Key Notes for Aspirants
MTF penetration at 0.25% of market cap (vs. 1.8% US); regulated by SEBI via NSE/BSE for equity delivery. [web:5] [web:26]
- BSE (1875, Asia's oldest), NSE (1992, electronic trading pioneer). [web:27]
- T+1 settlement; trading 9:15 AM-3:30 PM IST. [web:27]
- Risks: Margin calls, liquidation in downturns. [web:26]
PYQs for RRB NTPC & Govt Exams
- Q: Which body regulates stock exchanges in India? A: SEBI [web:29]
- Q: NSE was set up in? A: 1992 [web:30]
- Q: BSE established in? A: 1875 [web:30]
- Q: NIFTY/SENSEX based on? A: Market capitalisation [web:29]
