MTF Insights March 2026: Margin Trading Book Declines ₹9,663 Crore Amid Market Volatility
The margin trading facility (MTF) book in India experienced net liquidation of approximately ₹9,663 crore in March 2026, declining from ₹1,15,533.86 crore to ₹1,05,870.30 crore as of 2nd April 2026. This contraction occurred during one of the most volatile months for India's equity markets, driven by record FII outflows, escalating Middle East geopolitical tensions, and sharp corrections in benchmark indices. The National Stock Exchange maintained its dominance in the MTF market with over 95% of total volumes, with its March MTF book rising 58.6% year-on-year to ₹1.09 trillion despite a marginal quarter-on-quarter decline. CareEdge Ratings attributed the moderation in MTF activity to weaker market conditions, elevated volatility, and geopolitical uncertainties prompting a cautious approach among investors. Blue-chip stocks continued to dominate leveraged positions, with HDFC Bank leading at ₹1,435.84 crore in funded amount, followed by Reliance Industries at ₹1,337.55 crore and HAL at ₹1,260.03 crore. However, several stocks saw significant liquidations, including Infosys, TCS, and Wipro, indicating investor de-risking in IT and PSU-linked stocks. The data reveals that while retail investors are maintaining substantial leveraged positions in core large-cap names, they are adopting a selective and risk-averse approach to margin funding in the current market environment.
*this image is generated using AI for illustrative purposes only.
The month of March 2026 proved to be one of the most volatile periods for India's equity markets in recent years, testing the conviction of market participants across trading strategies. Record foreign institutional investor outflows, escalating geopolitical tensions in the Middle East, and sharp corrections in benchmark indices created challenging conditions. Consequently, margin trading facility (MTF) activity among Indian investors shifted to a risk-off mode, although blue-chip and large-cap stocks maintained their dominance in leveraged funding. The industry-wide MTF book faced net liquidation of approximately ₹9,663 crore as traders de-risked positions in response to heightened equity market volatility.
Industry MTF Book Performance
The industry MTF book stood at ₹1,05,870.30 crore as of 2nd April 2026, down from ₹1,15,533.86 crore as of 2nd March 2026. This represents a liquidation of ₹9,663.56 crore, indicating that more MTF positions were liquidated than created during the month. Despite this decline, the MTF book remains above the ₹1 lakh crore mark, demonstrating that investors continue to maintain leveraged delivery positions as an integral component of their portfolios.
The National Stock Exchange of India maintained its leadership position in the MTF market, accounting for more than 95% of total volumes. NSE's March MTF book rose by 58.6% year-on-year to ₹1.09 trillion, even as it declined marginally on a quarter-on-quarter basis. CareEdge Ratings reported that the recent moderation in the MTF book stems from weaker market conditions, elevated volatility, and geopolitical uncertainties, which have collectively led to a cautious approach and some pullback in leveraged positions.
Top Traded Stocks Using MTF
The following table presents the stocks that received the maximum funding under the MTF in Indian stock markets during March 2026:
| Company | Funded Qty Mar'26 | Change % | Funded Amt (Cr) | Change % | Margin on Dhan |
|---|---|---|---|---|---|
| HDFCBANK | 16,943,711 | +53.28% | 1,435.84 | +40.93% | 4.55x |
| RELIANCE | 9,556,362 | +25.49% | 1,337.55 | +21.07% | 4.55x |
| HAL | 2,852,183 | -19.86% | 1,260.03 | -21.06% | 4.17x |
| JIOFIN | 42,397,205 | -0.75% | 1,193.78 | -4.31% | 4.35x |
| ITC | 28,056,618 | -6.90% | 960.17 | -9.99% | 4.55x |
| TCS | 3,207,941 | -15.06% | 945.12 | -17.28% | 4.55x |
| VEDL | 15,162,625 | +6.72% | 926.47 | +8.65% | 4.13x |
| NAZARA | 33,069,745 | -1.55% | 924.71 | -2.26% | 2.94x |
| PATANJALI | 16,946,003 | +10.19% | 909.65 | +8.40% | 4.35x |
| MAZDOCK | 3,302,551 | -14.30% | 908.59 | -15.94% | 3.36x |
New MTF Positions and Exits
Beyond total funded holdings, the MTF snapshot reveals insights regarding stocks where investors added new margin-funded positions in March. Notable additions included JUBLFOOD with liquidation quantity change of +48.44%, FORCEMOT at +105.39%, and INDOThai showing remarkable growth of +421.86% in liquidation quantity.
Conversely, March 2026 witnessed significant liquidations in MTF-funded positions. The top-exited stocks by funded value included Infosys with liquidation amount of -54.29 crore, Vedanta at -32.35 crore, TCS at -27.61 crore, Bharti Airtel at -27.13 crore, and Wipro at -23.76 crore. These exits indicate investor de-risking in IT and PSU-linked stocks when valuations or market sentiment became stretched.
Market Implications
The March 2026 MTF data underscores that Indian retail investors are employing margin funding selectively and maintaining a risk-averse stance, despite holding substantial leveraged positions in core large-cap names. While the overall MTF book contracted due to heightened market volatility, investors continued to hold blue-chip stocks such as HDFC Bank and Reliance Industries, reflecting confidence in their long-term fundamentals despite short-term market fluctuations. The liquidations observed in IT and PSU-linked stocks demonstrate investor willingness to de-risk positions when market conditions warrant caution. These monthly insights serve as valuable indicators for traders and analysts monitoring leverage utilization in the Indian equity market, with MTF increasingly serving as a visible barometer of retail sentiment.
Will the Reserve Bank of India introduce stricter regulations on margin trading facilities following the recent volatility-driven liquidations?
How might the continued preference for blue-chip stocks in MTF positions affect mid-cap and small-cap market liquidity in the coming quarters?
Could the significant IT sector liquidations signal a broader shift in investor sentiment towards technology stocks amid global economic uncertainties?
16
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
