Trading patterns in Indian market-linked instruments showed a sharp geographic split in calendar year 2025, with domestic market activity easing while offshore trading at GIFT IFSC surged to record levels, according to the National Stock Exchange’s (NSE) annual highlights.
While participation and turnover in India’s onshore secondary markets weakened over the year, activity on the NSE International Exchange (NSE IX) gained strong momentum. The exchange reported a total notional turnover of over $1.16 trillion in 2025, making it one of its strongest years since inception. A large share of this volume came from GIFT Nifty derivatives, which alone accounted for approximately $1.13 trillion in turnover.
Offshore trading gathered pace steadily through the year, with October 2025 marking the highest-ever monthly turnover for NSE IX. Open interest on the exchange also climbed to all-time highs, signalling sustained position building rather than short-term speculative trades. Additionally, the number of active unique client codes increased sharply year-on-year, highlighting growing global participation in Indian market-linked products.
In contrast, domestic markets witnessed a slowdown. Cash market turnover on the NSE declined in 2025, while equity derivatives volumes also saw a notable drop. Retail investor participation weakened across segments, with derivatives trading experiencing a steeper fall, despite benchmark indices posting positive returns during the year.
Overall, the data suggests that 2025 was not a year of fading interest in Indian equities, but rather one where trading activity shifted offshore. While onshore markets saw moderation in intensity and participation, offshore platforms tied to Indian indices recorded robust growth in volumes, open interest, and investor engagement, underscoring India’s continued appeal to global market participants.
Disclaimer:
This article is for informational purposes only and should not be construed as investment advice. Market data and trends are based on publicly available information from exchange disclosures. Investors are advised to consult certified financial advisors before making any investment decisions.
