Trading volumes in unlisted shares plunge up to 70%

"This slowdown has been driven by a combination of factors, including a lack of quality companies, elevated valuations, and company-specific concerns," said Hitesh Dharawat, founder of Dharawat Securities. "Additionally, the underperformance of recent IPO listings has made investors more cautious about entering at the pre-IPO stage."
Trading volumes in the unlisted market, according to him, have declined by nearly 40% from the peak seen around September-October last year.
The shrinking demand has weighed on share prices too. Oravel Stays (Oyo), Hero FinCorp, Imagine Marketing (Boat), Nayara Energy and Zepto are down 13-28% so far in 2026, as per data from Wealth Wisdom India.
Shares of companies in high-growth sectors or those heading for an IPO remain popular. Metropolitan Stock Exchange of India, Chennai Super Kings, SBI Funds Management and Parag Parikh Financial Advisory Services are up 9-64% this year.
"Trading activity is now concentrated in a select set of stocks, with NSE accounting for nearly 60% of the remaining market size," said Krishna Patwari, managing director and founder of Wealth Wisdom India. NSE shares had last traded at ₹2,010 as of Wednesday, and are up 3.6% this year.
According to him, trading volumes in the unlisted space are down by nearly 70% from the peak of the recent bull market in September 2024.
Other than NSE, Patwari is seeing buying interest in CSK, Parag Parikh Financial Advisory Services, SBI Mutual Fund, IndusInd General Insurance and Nayara Energy.
"Compared to earlier trends, demand has softened in sectors such as defence, hospitality and NBFC names," he said.
The frenzy in the unlisted shares during the bull market was driven by ample liquidity, strong risk appetite and a robust IPO pipeline, drawing investors to pre-IPO opportunities. Elevated valuations in listed peers and expectations of listing gains pushed prices higher, fuelling concerns of excesses in the space.
In recent months, fewer companies have been able to raise funds through private or pre-IPO placements, said Sandip Ginodia, Director at Altius Investech.
"Typically, capital unlocked after listings gets reinvested into new unlisted opportunities, creating a continuous flow," he said. "A stronger secondary market would likely revive IPO activity and lead to more trading in the unlisted space."
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Facts Only

* Trading volumes in the unlisted market declined by nearly 40% from the peak seen around September-October last year.
* Shares of Oravel Stays, Hero FinCorp, Imagine Marketing, Nayara Energy, and Zepto are down 13% to 28% so far in 2026.
* Shares in high-growth sectors or those heading for an IPO remain popular.
* Metropolitan Stock Exchange of India, Chennai Super Kings, SBI Funds Management, and Parag Parikh Financial Advisory Services are up 9% to 64% this year.
* Trading activity is concentrated in the NSE, accounting for nearly 60% of the remaining market size.
* Unlisted trading volumes are down by nearly 70% from the peak of the recent bull market in September 2024.
* Demand has softened in sectors such as defence, hospitality, and NBFC names.
* The frenzy in unlisted shares was driven by ample liquidity, strong risk appetite, and a robust IPO pipeline.
* Fewer companies have been able to raise funds through private or pre-IPO placements in recent months.

Executive Summary

Trading volumes in the unlisted market have significantly declined, dropping by nearly 40% from the peak seen around September-October of the previous year. This shrinking demand has negatively affected share prices for several unlisted entities, including Oravel Stays, Hero FinCorp, Imagine Marketing, Nayara Energy, and Zepto, which have seen declines of 13% to 28% so far in 2026. Conversely, shares in companies in high-growth sectors or those targeting an IPO remain popular, with entities like the Metropolitan Stock Exchange of India, Chennai Super Kings, SBI Funds Management, and Parag Parikh Financial Advisory Services showing substantial gains of 9% to 64% this year. Trading activity has concentrated heavily in the National Stock Exchange (NSE), which accounted for nearly 60% of the remaining market size, with NSE shares up 3.6% this year. Demand has softened across sectors such as defence, hospitality, and NBFC names. The initial frenzy in the unlisted space was fueled by ample liquidity and a robust IPO pipeline, which has since given way to greater investor caution regarding pre-IPO entry and valuations.

Full Take

The narrative describes a structural shift where market activity and investor focus have moved from the speculative, liquid environment of pre-IPO unlisted assets to established, high-growth listed equities. This shift suggests that the perceived risk and valuation associated with the private market have increased, driven by the underperformance of recent IPO listings and company-specific concerns. The decline in unlisted trading and the subsequent concentration in the NSE points to a re-prioritization of liquidity and perceived stability among investors. The contrast between the initial "frenzy" fueled by liquidity and the current cautious environment highlights a disconnect between speculative capital flow and fundamental corporate quality. The observation that capital unlocked post-listing is reinvested in new opportunities implies that the secondary market performance is now a critical determinant for future flow. This pattern suggests that momentum in the private space is contingent on the performance of the public market and the perceived quality of the listed ecosystem, indicating a systemic dependency where listed performance now dictates unlisted appetite.
Patterns detected: ARC-0043 Motte-and-Bailey, ARC-0024 Ambiguity

Sentinel — Human

Confidence

This analysis is grounded in specific expert quotes and market statistics, suggesting a human journalistic foundation, though the presentation style is highly structured and data-driven.

Signals Detected

Varied sentence structure and natural conversational flow despite dense financial terminology.

The flow shifts naturally between quoting experts and presenting market data, displaying a synthesis of viewpoints rather than a monolithic statement.

Specific, attributed market data (40% decline, specific stock movements, named experts) suggests sourcing from specific financial reporting rather than generic LLM output.

The concluding section is overtly repetitive promotional material (links/subscriptions), which is a common feature in human-published online financial articles, even if the core analysis is synthetic.

Human Indicators

The text contains specific, localized financial data and direct quotes attributed to named individuals (Hitesh Dharawat, Krishna Patwari, Sandip Ginodia), indicating grounding in specific market reporting.

The context provided by the quotes demonstrates an understanding of market dynamics (liquidity, IPO pipeline, valuation) that often requires human-contextual input.