MTF Insights - August 2026: Top traded stocks using margin funding

Key takeaways:

• Dhan offers its users MTF limits of up to ₹5 crore for 1,700+ stocks at interest rates starting at 12.49% per annum.
• In August 2026, the industry MTF book reached a record ₹1,52,507 crore, which is an increase of ₹9,836 crore (6.9%) from July, the 6th-largest monthly net addition.
• HDFC Bank led the MTF additions with ₹1,342 crore added in August, even as its share price fell 5.2%, indicating aggressive dip buying by leveraged investors.
• MCX saw the largest MTF liquidation in August, with its funded value reduced by ₹425 crore, nearly halving its MTF book from the July highs.
• The Finance sector added 30% to the total MTF book growth in August, while the Technology Services sector recorded the highest MTF outflow of ₹858 crore.

The Indian equities market had mixed sentiments during the month of August 2026. The Nifty 50 index fell about 1.14% to 24,080.40, whereas the Sensex dipped 1.46% to 76,957.27 from July's close. However, the broader market diverged, with mid-cap and small-cap stocks climbing this month.

Despite the decline in the Nifty 50 benchmark, the MTF book grew sharply in August. The combined NSE and BSE Margin Trading Facility (MTF) book rose ₹9,836 crore (6.9%) in August 2026 to a record ₹1,52,507 crore as of August 31. It is the 6th-largest monthly increase and 55.3% higher than a year earlier. In this blog, we will explore August’s MTF book in more detail.

What is MTF and why are MTF insights important to investors?

Margin Trading Facility (MTF) is a facility provided by stockbrokers to market participants where they can purchase Group I eligible securities by paying only a marginal upfront amount, usually 20% to 30% of the total purchase value, with the broker funding the remainder.

From T+1 day until the position is closed, the broker charges an interest rate on the amount funded. Market participants can avail an MTF limit of up to ₹5 crore at interest rates as low as 12.49% p.a. on Dhan across 1,700+ eligible stocks.

Stocks that appear in the top MTF holdings indicate strong short- to medium-term conviction.

However, if MTF positions are liquidated, it means investors are either booking profits or losing confidence in those stocks. Thus, MTF insights help investors gauge the direction of leveraged capital flows in the Indian capital market.

How the industry MTF book changed in August 2026

The industry MTF book value was ₹1,42,671 crore at the start of August 2026. However, the month started on a slightly low note as the MTF book value touched its lowest single-day level of ₹1,42,394 crore on August 3, with an outflow of ₹277 crore.

However, August 4 saw the month's largest single-day addition of ₹1,686 crore, setting the tone for the rest of the month. In August, the industry MTF book reached a record high of ₹1,52,507 crore as of August 31. The record MTF additions in August reflect a significant uptick from the small net addition of ₹1,869.51 crore in July.

The key driver behind this surge in MTF positions was fresh position-building in large-cap Banking and Finance stocks, which many investors viewed as a buying opportunity as benchmark names corrected during the month. NSE's book rose 6.8% to ₹1,45,925 crore, while BSE's book climbed 8.3% to ₹6,582 crore, holding 4.3% of the combined total.

Top 5 stocks with the highest MTF Additions - August 2026

Fresh leveraged positions were built predominantly in the following stocks:

Top 5 stocks with the highest MTF liquidations - August 2026

August also witnessed significant profit-booking in the following stocks:

Sectoral themes in August 2026

The following sectoral theme was witnessed in the August 2026 MTF book:

Finance accounted for 30% of the total MTF book growth in August. Health Technology saw the fastest growth in MTF positions in percentage terms (+17.2%), while Process Industries and Utilities both posted double-digit gains, reflecting fresh positioning in PSU and commodity-linked names. On the other hand, Technology Services saw the sharpest exit in MTF positions, with ₹858 crore as investors locked in IT gains from July's ~17% Nifty IT surge.

The bottom line

In August 2026, the Industry MTF book reached ₹1,52,507 crore, fuelled by the dip-buying in HDFC Bank, BSE and some PSU stocks in banking, power and metals. The month of August witnessed investors taking fresh positions into price weakness, especially in large-cap financials, while booking profits in capital market stocks such as MCX and infrastructure stocks such as Larsen & Toubro.

The divergence between a falling Nifty 50 and Sensex and a record MTF book (+6.9%) suggests a market where informed, leveraged capital is selectively repositioning rather than retreating. MTF data provides a real-time window into where conviction and borrowed money are flowing in Indian equities. However, as leverage magnifies both gains and losses, market participants should thoroughly evaluate risk before building MTF positions.