The largest share of stock market turnover still comes from high networth Individuals in India. NSE data says that 75% stock market trading in December from across the country came from merely 0.2% of the total investors.
States like Gujarat, Maharashtra and Uttar Pradesh also show the same trend where a greater number of people invest in stock markets, said NSE officials.
Total 1.3 crore investors who traded in December, only 23,491 traded in ticket sizes above Rs 10 crore. However, they accounted for 75% of the total turnover in the month.
Fuelled by higher returns on investments due to the stock market rally post-Diwali, a number of new investors turned to investing in the Indian equity markets. A majority 65% of the retail investors in fact, made small-ticket investments below Rs 1 lakh.
Retail participation in the Indian equity markets increased in December, fuelled by the bull run of the market. A large chunk of stock trading is often dominated by HNIs.
However, December figures clearly indicate that small investor participation is increasing. With traditional asset classes not yielding higher returns, the traction of investors towards equity markets is higher. Investors from across the country traded to the tune of Rs 20.79 lakh crore in December in the cash market on NSE. Data indicates that the number of active individual investors reached a new high of 1.30 crore during the month.
Nearly 30% investors traded less than Rs 10,000 in December, cumulatively amounting to only Rs 567 crore. This was merely 0.03% of the total turnover during the month. On the other hand, 35% of these investors had a total turnover in the range of Rs 10,000 to Rs 1 lakh in the month, followed by 23.8% trading in the range of Rs 1 lakh to Rs 10 lakh.
At least 98% of active investors in Dec traded less than Rs 1 crore on a cumulative basis during the month, which was only one-fourth of the overall turnover.
An increasing number of youngsters entered the stock market since Covid, fuelled by better returns and technology platforms, making investment easy. Yo ung professionals tend to invest in smaller ticket sizes. This has led to adecline in the average ticket size of entry-level investors to about Rs 15,000. Traditionally, first-time investors in stock markets happened to be middle age people, who used to start investing with ticket sizes above Rs 50,000.
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