‘Are Retail Investors Losing Interest In Stock Markets? - S Ravi, Former BSE Chairman Voices His Thoughts

The Indian stock market has witnessed lakhs of new investors from Tier-2 and Tier-3 cities during the Covid-19 pandemic. The Indian stock market witnessed lakhs of new investors from Tier-2 and Tier-3 cities during the pandemic. However, this enthusiasm seems to have waned as returns from the market have flattened in recent months. From a high of 20 lakh new investors in October 2021, it has dropped to 13 lakhs in April 2022.

Sethurathnam Ravi BSE former chairman regarding retail investments in stock markets explains that patience might be a virtue in these tough times. At a time when the Covid-19 pandemic and consequent lockdowns affected the economy, the stock market was one of the very few areas where the wheels were still turning. This attracted many new investors, and a record number of new Demat accounts were opened. The future remained dark with the pandemic looming over us. The global supply chain was crippled. Yet, India’s stock market remained more stable than other markets.

Sethurathnam Ravi
Sethurathnam Ravi
According to Sethurathnam Ravi, former BSE Chairman, foreign portfolio investments or FPIs became net sellers for eight out of 12 months in 2021-22 with a net outflow of Rs. 1.3 lakh crore, against a net inflow of Rs. 2.8 lakh crore in the previous year. Mutual funds, on the other hand, made heavy investments worth Rs. 1.7 lakh crore in the Indian equity market in 2021-22, according to the Reserve Bank of India.

There was a massive rise in the number of new Demat accounts. A total of 50 lakh Demat accounts were opened in 2019-20 and 1.42 crore in 2020-21. This shot up to 3.46 crore new Demat accounts in the year 2021-22. This means that on average, 28.8 lakh Demat accounts were opened every month during 2021-22, which was higher than 11.8 lakh accounts per month in the previous year and 4.2 lakh Demat accounts per month in 2019-20.

Finance Minister Nirmala Sitharaman said that retail investors seemed to act as shock absorbers even when foreign portfolio investors went away. Experts suggest that ups and downs in the stock market are a usual phenomenon and that new investors should be patient during tough times. “If the retail investors have used prudence and have invested in good stocks with strong fundamentals, they should not worry,” S Ravi BSE former Chairman, told India Today. As a word of caution, Ravi added that retail investors should diversify their portfolios and should not take loans to invest in equity.

Comments

Post a Comment

Popular posts from this blog

Make Your Movie Time Amazing With the Best Home Theatres in Nagercoil at Rajan & Co

Image
Rajan & Co. is one of the major home appliance shops in a popular area of Nagercoil, Tamil Nadu. It was established in March 1996 at Nagercoil and has been in this business for more than 23 years. At Rajan & Co, you can select a wide variety of systems at different prices ranging from ₹2,990 to ₹3,62,610. All these home theatre systems are offered in the best prices with 15% to 20% discounts. Rajan & Co gives the best home theatres at the best prices in Nagercoil. Best home theatres at Rajan & Co according to position are: 1. JBL Partybox Encore Essential | Portable Bluetooth Party Speaker | 100W Monstrous Pro Sound · ₹25,499.00₹29,999.00 · Aux Input Support, Lighting customization via JBL Partybox App, USB Plug and Play Support, Wired Mic Input for Karaoke, Wireless Streaming with Bluetooth 5.1, Built-in Powerbank (4800 mAh)Aux Input Support, Lighting customization via JBL Partybox App, USB Plug and Play Support, Wired Mic Input for Karaoke, Wireless Streaming with ...
Read more

Pak Police Break Into Imran Khan's Home Hours After He Leaves For Court

Image
"Meanwhile Punjab police have led an assault on my house in Zaman Park where Bushra Begum is alone," Imran Khan said.                             Pak Police Break Into Imran Khan's Home Hours After He Leaves For Court  Lahore/New Delhi: Pakistan police entered the home of former Prime Minister Imran Khan in Lahore on Saturday while he was on his way to Islamabad for a court hearing in a corruption case, officials from his party said. Bushra Begum, Mr Khan's wife, was at home when police removed the barricades and broke into his house, they said. During the operation, at least 10 Pakistan Tehreek-e-Insaf workers were injured and over 30 arrested, news agency PTI reported. His party shared a video on its official Twitter account that showed Mr Khan's supporters at his home being lathicharged by the policemen. "Meanwhile Punjab police have led an assault on my house in Zaman Park where Bushra Begum is alone. Un...
Read more

China plane crash: ‘Grim’ search as rescue teams comb hillside

Image
  Firefighters and paramilitary police deployed to steeply-forested slopes of China’s first air crash in a decade. Paramilitary police officers work on a hillside where a China Eastern Airlines Boeing 737-800 plane flying from Kunming to Guangzhou crashed on Monday afternoon Rescuers in China are scouring heavily forested slopes in southern China where a China Eastern Airlines crashed and exploded in flames, as the airline expressed “deep condolences” for those on board. Some 132 people, including nine crew, were on flight MU5735 when it crashed in the mountains of southern Guangxi on a flight from Kunming to Guangzhou. The Boeing 737 -800 crash is the first involving a commercial aircraft in China since 2010. Debris was strewn across mountain slopes with state media reporting that the burned remains of identity cards, purses, and wallets had been seen. “The company expresses its deep condolences for the passengers and crew members who died in the plane crash,” China East...
Read more