Updated Aug 27, 2025 17:56 is
BSE, Angel One and CDSL witnessed sharp declines in from July highs (Image: Canva/ET NOW Digital)
Capital Market Stocks decline from July High
Is this buying opportunity?
Rajesh Palviya, Senior VP (Technical & Derivatives Research) at Axis Securities, shared his view on ET NOW Swadesh. He noted that after Covid, financial inclusion expanded rapidly, bringing strong participation in the equity and derivatives market. However, in the last six to eight months, SEBI has introduced several regulations to address the growing risks in options trading, where many retail traders had lost money.
Recently, SEBI has proposed further changes, including a possible shift from weekly to monthly expiries in derivatives contracts. According to Palviya, this move could be negative for brokerages, exchanges and platform companies, as it may impact trading volumes.
Impact on market volumes
Volumes in derivatives and options trading have already slowed, and margin books have come down. The earlier strong momentum of new account openings and direct retail participation in equities is now facing some consolidation. Palviya believes this adjustment phase will take time as the industry evolves under the new regulations.
Long-term growth still intact
Despite short-term pain, Palviya stressed that the long-term outlook for the sector remains positive. New demat accounts continue to be opened steadily, and over time, market activity is expected to pick up again. “This is a correction phase. Investors who were waiting for an entry into this sector may find opportunities,” he said.
Stock-specific outlook
Palviya advised investors not to rush into buying immediately. Instead, they should wait for another 4–5% correction and then look at staggered buying for long-term wealth creation.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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