The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
Investors India|September 2024
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Mr. Nikhil Rungta
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man

These institutional giants roamed freely, their footprints shaping the landscape. But in recent years, something unexpected has happened: a swelling crowd of retail investors—regular folks with regular jobs— has stormed the gates, turning the market into a bustling bazaar of hopes, dreams, and sometimes, sheer bravado or utter despair.

The Pandemic’s Unlikely Hero

Let’s be honest: the COVID-19 pandemic wasn’t something most people would describe as fortuitous. Yet, amidst the lockdowns, economic jitters, and Netflix binges, a curious thing happened. Deprived of their usual pastimes and faced with an uncertain future, many Indians turned to the stock market, not out of nostalgia for the floor trading of old, but because their traditional savings—those safe, predictable fixed deposits and small savings schemes — were giving them about as much excitement as watching paint dry.

Suddenly, the stock market, once viewed with suspicion by the risk-averse Indian household, became the new frontier. Data from the National Stock Exchange (NSE) tells the tale: between 2020 and 2023, the number of active demat accounts more than doubled, with retail investors now commanding over 45% of the daily trading volume in the cash segment. What started as a trickle of curious souls quickly turned into a deluge, fundamentally altering the market structure. The stock market was no longer just a domain for the suit-clad elite; it had become the battleground for the everyman.

Technology: The Great Equalizer

This story is from the September 2024 edition of Investors India.

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This story is from the September 2024 edition of Investors India.

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