New Delhi, March 9 -- Dear reader, I have been warning you to brace for higher volatility and, finally, for deep impact last week. The peeling of the mosaic shows just how nervous retail sentiments are.

I have been drawing your attention for a few months to the extreme leverage (buying with borrowed funds), which is used in margin-funded trading (MTF) and in futures and options. Last week saw early signs of cracks in retail investors' collective confidence. The number of shares purchased with margin-funded funds fell to levels not seen after 16 January 2026. It is difficult to gauge whether this decline occurred due to margin calls or voluntary unwinding. But the magnitude of the fall cannot be ignored. At the same time, the broad-based ...