‘Most hated all-time high?’: Zerodha co-founder Nithin Kamath’s reading of Nifty at 18,700

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At a time when Indian stock markets are scaling new highs, Zerodha co-founder Nitin Kamath On Friday Twitter wondered whether it was the “most hated character of all time”.

“While markets are at an all-time high, the momentum in retail participation and activity is not nearly as high as it was at this time last year. Monthly new demat account openings have declined by 40%, though markets have bounced back At the highest level,” he tweeted, attaching a chart showing the decline in demat accounts.

Global stock markets have turned bearish over the past 12 months, especially after March 2022 when the US Federal Reserve started raising interest rates to tame rising inflation.

Kamath’s tweet was alluding to the phenomenon of increased participation by retail investors post-Covid, when central banks across the world kept interest rates unchanged to stimulate economies hit by the pandemic and resulted in a rally in stock markets. came.

Indian stock markets snapped an eight-session winning streak on Friday but held on to weekly gains.

The S&P BSE Sensex ended 0.66% lower at 62,868.50, while the Nifty 50 index ended 0.62% lower at 18,696.10. The Nifty 50 gained 3.6% in the last eight sessions.

Twitter users told Kamath in the comments section that adding demat is an aberration after the covid subsides and retail investors are anyway now going to offices and have less personal time.

Another user said that ever since the Nifty hit 15,200 in June, retail investors are worried about the bear market and subsequent crash that could be seen in 2023, as many analysts are predicting.

Read also: Zerodha’s Nitin Kamath sees a silver lining for India in the ‘excesses of the startup world’

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