Mumbai, Sept. 17 -- Another quiet shift is underway in the ever-changing world of stock markets.

Retail investors who once dominated the cash segment are pulling back from direct trading, even as they continue to channel money indirectly through mutual funds.

But who will fill this gap? And what does it mean for the future of India's markets?

The recently released National Stock Exchange (NSE) data shows that the most direct way for retail investors to participate in equities-buying and selling stocks in the cash segment-has seen a steady decline over the past five years.

Their share in the NSE cash market dropped to 34.2% in 2025-26 (until August), down sharply from the pandemic peak of 45% in 2020-21. This marks their lowest share i...