New Delhi [India], August 26 (ANI): Steady investor allocations, rather than market movements, drove passive assets under management (AUM) to a record Rs 15.15 lakh crore in July 2026, with 67 per cent of the passive AUM linked to stocks covered under SEBI's new Closing Auction Session (CAS) framework, according to data shared by the National Stock Exchange.

Passive funds absorbed over Rs 90,461 crore in net inflows between January and July 2026, despite geopolitical tensions, elevated crude prices, rupee depreciation and bouts of FPI selling.

'Passive AUM reached a record Rs.15.15 lakh crore in July 2026, marginally surpassing the previous peak of Rs.15.02 lakh crore in January 2026,' NSE said.

Noting that passive AUM had marginally surpassed its previous peak in January, NSE said passive funds attracted Rs 43,212 crore in net inflows over the next two months, even as AUM declined to Rs 13.73 lakh crore by March 2026 due to valuation pressures.

'As market conditions stabilised, continued inflows helped lift passive assets by nearly Rs.1.41 lakh crore from the March 2026 trough, enabling the industry to reclaim and ultimately surpass its previous peak by July 2026,' it said.

Notably, 67 per cent of the passive AUM were linked to the stocks covered under SEBI's new Closing Auction Session (CAS) framework which was introduced on August 3, 2026, replacing the previous Volume Weighted Average Price (VWAP) method for determining the official closing price of stocks.

While, the initial framework covers only 208 F&O-eligible stocks, the 'AUM linked to these stocks is substantial, Rs.10.11 lakh crore, representing 67% of the total passive AUM,' the stock exchange said.

Notably, the scale is specifically visible in ETFs, with Rs.7.92 lakh crore of the Rs. 8.04 lakh crore AUM linked to CAS-eligible stocks. Also, 'around Rs.2.19 lakh crore of the Rs.2.40 lakh crore assets managed by Equity Index Funds are linked to CAS-eligible stocks,' NSE noted.

NSE further noted a 'clear shift in flow leadership' during the March drop and rebound, with commodity ETFs leading passive inflows, attracting Rs 33,503 crore in January alone, or 86 per cent of total passive inflows.

'However, the commodity ETFs lost their sheen subsequently as gold and silver prices started moderating,' NSE said as net inflows slipped to Rs. 16,641 crore during February-July 2026.

Meanwhile, it is worth noting 'equity allocations provided an important cushion.'

'Amid the market correction in March 2026, equity-oriented passive schemes absorbed Rs. 30,237 crore even as passive AUM declined to its low of Rs. 13.73 lakh crore,' NSE noted adding equities increasingly emerged as the major driver of asset formation, 'attracting Rs. 50,096 crore of net inflows through April-July 2026 and lifting passive equity AUM from Rs. 9.18 lakh crore to Rs.10.71 lakh crore.'

The shift was also evident in new product launches, with 52 of the 68 passive schemes launched between January and July 2026 being equity-oriented, reflecting growing investor preference for benchmark-led equity exposure.

Overall, 'passive growth in 2026 was driven less by market direction and more by the persistence of investor allocations, enabling the industry to absorb valuation-led drawdowns and return to record asset levels,' NSE noted. (ANI)