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

Key takeaways:

• Dhan allows its customers to access MTF limits of up to ₹5 crore for 1700+ stocks at interest rates as low as 12.49% per annum.
• The industry MTF book has grown by ₹1,869.51 crore to ₹1,36,319.83 crore in July from ₹1,34,450.32 crore.
• Muthoot Finance was the top gainer among fresh additions to the MTF in July with ₹86.37 crore, followed by BSE and MCX.
• HDFC Bank became the top MTF-funded stock with a funded value of ₹2,381.01 crore, surpassing Reliance Industries.
• Larsen & Toubro had the highest MTF position liquidation during July with a liquidated amount of ₹82.36 crore.
• The sectoral theme for new MTF additions in July was led by capital market stocks such as BSE, MCX and CDSL.

Indian equities had a good trading month in July 2026, as both major indices surged. This recovery was fuelled by a sharp recovery in the information technology sector and the re-entry of the FIIs after a net selling period. The Nifty 50 index concluded the month at 24,383.60, a rise of approximately 2.2%, while the BSE Sensex closed at 78,094.64, up by 2.1%. The Nifty IT index was the top gainer with a monthly gain of nearly 17%, the highest in the past six years.

The industry MTF book witnessed a steady rise in July. The industry MTF book increased to ₹1,36,319.83 crore from ₹1,34,450.32 crore, with net additions of ₹1,869.51 crore. 

Let’s go through these July MTF insights in detail.

What is MTF and why are MTF insights important?

Margin Trading Facility (MTF) is a facility provided by stock brokers to market participants where they can purchase Group 1 eligible securities by paying only a marginal upfront amount, usually 20-30% of the total purchase value, and the remaining is paid by the broker. 

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.

The monthly MTF insights are utilised by market participants to assess and comprehend the market sentiment and identify where market participants are willing to pay both capital and interest to hold a position. Stocks that are routinely part of the top MTF holdings often indicate investors' strong conviction in their short- to medium-term growth.

However, liquidations of existing MTF positions by market participants indicate profit-booking and lack of confidence. These monthly MTF insights are therefore a reliable measure of the direction of leveraged capital flows.

The industry MTF book in July 2026

At the start of July 2026, the industry MTF book stood at ₹1,34,450.32 crore. By August 3, 2026, it had increased to ₹1,36,319.83 crore due to a net addition of ₹1,869.51 crore. This was, however, a deceleration in the net addition of fresh MTF positions as compared to the previous month when net additions were at ₹8,414.08 crore.

The modest additions in July were due to market participants' selective approach towards adding new positions and booking profits in stocks that have performed well. The week ending on August 3 witnessed further reduction of ₹1,777.81 crore, reflecting early profit booking at the beginning of August.

Thus, July witnessed selective rotation, with fresh positions built in large-cap banking, financial services and capital market stocks, and liquidation in selective infrastructure, IT, automobiles and consumer stocks.

Top 5 stocks with highest MTF holdings - July 2026

The following is the list of the top 5 stocks with the highest MTF holdings as of July 2026.

Top 10 stocks added in MTF - July 2026

During July, fresh leveraged positions were built in the following stocks:

Top 10 stocks with the highest MTF liquidations - July 2026

July also witnessed profit booking and liquidation of MTF positions in the following stocks:

The bottom line

The Industry MTF book continued to grow in July 2026, with the total funded positions surpassing ₹1.36 lakh crore. In July, HDFC Bank was the largest MTF-funded stock and Muthoot Finance had the highest growth in leveraged positions in the July MTF book. Meanwhile, liquidations in Larsen & Toubro, Infosys, Eicher Motors, Axis Bank and other stocks suggested that the market participants were busy booking profits and managing their exposure.

MTF data is helpful as it gives insights about where market participants are willing to even take leveraged positions. As leverage magnifies both profits and losses, before taking MTF positions, market participants should conduct their own evaluation.