Mumbai, March 24 -- Retail investors are no longer fleeing volatility; they are emerging as key shock absorbers for Dalal Street. These mom-and-pop investors have stepped in even as markets faced heavy selling pressure amid the US-Israel-Iran war-led rout.

This contrarian pattern has emerged in a Mint analysis of daily flow data since the onset of the West Asia conflict on 28 February. While retail activity fluctuated, individual investors turned net buyers during periods of acute volatility.

Out of the 13 trading sessions analyzed, for which data was available, the headline index Sensex retreated on eight occasions; retail participants absorbed the downside in five of them. This was most pronounced during the 19 March rout-the deepest ...