LATEST UPDATES

G A Mir resigns as JKPCC chief

Precious Kashmir 06/07/2022

Semi-decomposed Body of Newborn Baby Found Inside River in Kokernag Anantnag

Precious Kashmir 06/07/2022

Irregularities in Award of Civil Works of Kiru HEP: CBI searches 16 locations in 5 cities

Precious Kashmir 06/07/2022

7 Persons Injured in Road Mishap Along Srinagar-Jammu Highway in Banihal

Precious Kashmir 06/07/2022

India’s daily Covid tally rises to 16,159

Indo Asian News Service 06/07/2022

MeT forecasts light to moderate rain in Jammu, occasional showers in Kashmir

Precious Kashmir 06/07/2022

After remaining suspended for a day Amarnath Yatra resumes again

Precious Kashmir 06/07/2022

IED Detected, Defused In Baramulla district

Precious Kashmir 06/07/2022

Two newly recruited local LeT militants surrender in live gunfight at Kulgam: Police

Precious Kashmir 06/07/2022

Gunfight rages in Kulgam

Precious Kashmir 06/07/2022

Delhi-Dubai SpiceJet flight diverted to Karachi after technical snag

Indo Asian News Service 05/07/2022

Tangdar-Chowkibal road closed for vehicular movement after landslides

Precious Kashmir 05/07/2022

Missing Sheeri boy found dead, body recovered from Namlam waterfall

Precious Kashmir 05/07/2022

MeT predicts more rains in J&K in next 24-36 hours

Precious Kashmir 05/07/2022

Amarnath Yatra temporarily suspended due to inclement weather

Precious Kashmir 05/07/2022

Fresh mudslides at Kullan Gund force closure of Srinagar-Leh highway

Precious Kashmir 05/07/2022

3.2-magnitude quake strikes J&K

Indo Asian News Service 04/07/2022

Motorcyclist, Pillion Rider Killed in Kupwara Road Accident

Precious Kashmir 04/07/2022

Isolated light rains forecast as temp stays above normal in Kashmir

Precious Kashmir 04/07/2022

6 sticky bombs, arms and ammunition recovered in Reasi: Police

Precious Kashmir 04/07/2022

Minor Girl Killed, Her Father and Grandfather Injured As Brick Wall Collapses in Shopian

Precious Kashmir 03/07/2022

KNO Executive Editor Bereaved, mother passes away

Precious Kashmir 03/07/2022

SIA raid in Budgam

Precious Kashmir 03/07/2022

2 LeT militants apprehended by villagers in Reasi: Police

Precious Kashmir 03/07/2022

Rains Lash Jammu, Elude Kashmir As Temp Hovers Above Normal In Valley

Precious Kashmir 03/07/2022

LATEST UPDATES

G A Mir resigns as JKPCC chief

Precious Kashmir 06/07/2022

Semi-decomposed Body of Newborn Baby Found Inside River in Kokernag Anantnag

Precious Kashmir 06/07/2022

Irregularities in Award of Civil Works of Kiru HEP: CBI searches 16 locations in 5 cities

Precious Kashmir 06/07/2022

7 Persons Injured in Road Mishap Along Srinagar-Jammu Highway in Banihal

Precious Kashmir 06/07/2022

India’s daily Covid tally rises to 16,159

Indo Asian News Service 06/07/2022

MeT forecasts light to moderate rain in Jammu, occasional showers in Kashmir

Precious Kashmir 06/07/2022

After remaining suspended for a day Amarnath Yatra resumes again

Precious Kashmir 06/07/2022

IED Detected, Defused In Baramulla district

Precious Kashmir 06/07/2022

Two newly recruited local LeT militants surrender in live gunfight at Kulgam: Police

Precious Kashmir 06/07/2022

Gunfight rages in Kulgam

Precious Kashmir 06/07/2022

Delhi-Dubai SpiceJet flight diverted to Karachi after technical snag

Indo Asian News Service 05/07/2022

Tangdar-Chowkibal road closed for vehicular movement after landslides

Precious Kashmir 05/07/2022

Missing Sheeri boy found dead, body recovered from Namlam waterfall

Precious Kashmir 05/07/2022

MeT predicts more rains in J&K in next 24-36 hours

Precious Kashmir 05/07/2022

Amarnath Yatra temporarily suspended due to inclement weather

Precious Kashmir 05/07/2022

Fresh mudslides at Kullan Gund force closure of Srinagar-Leh highway

Precious Kashmir 05/07/2022

3.2-magnitude quake strikes J&K

Indo Asian News Service 04/07/2022

Motorcyclist, Pillion Rider Killed in Kupwara Road Accident

Precious Kashmir 04/07/2022

Isolated light rains forecast as temp stays above normal in Kashmir

Precious Kashmir 04/07/2022

6 sticky bombs, arms and ammunition recovered in Reasi: Police

Precious Kashmir 04/07/2022

Minor Girl Killed, Her Father and Grandfather Injured As Brick Wall Collapses in Shopian

Precious Kashmir 03/07/2022

KNO Executive Editor Bereaved, mother passes away

Precious Kashmir 03/07/2022

SIA raid in Budgam

Precious Kashmir 03/07/2022

2 LeT militants apprehended by villagers in Reasi: Police

Precious Kashmir 03/07/2022

Rains Lash Jammu, Elude Kashmir As Temp Hovers Above Normal In Valley

Precious Kashmir 03/07/2022
  • Home
  • Front
  • Jammu & Kashmir
    • City
  • Anchor stories
  • Business
  • Sports
  • National
  • World
  • Opinion
    • Edit
    • Interviews
    • Letters
  • epaper
Wednesday, July 6, 2022
PRECIOUS KASHMIR
No Result
View All Result
  • Home
  • Front
  • Jammu & Kashmir
    • City
  • Anchor stories
  • Business
  • Sports
  • National
  • World
  • Opinion
    • Edit
    • Interviews
    • Letters
  • epaper
Precious Kashmir
No Result
View All Result
Home Business

Shock-absorbing capabilities of Indian retail investors is the silver lining

Indo Asian News Service by Indo Asian News Service
20/06/2022
in Business
2 min read
0
Will discuss bringing ATF in GST in next Council meet: FM

New Delhi: On June 7, Finance Minister Nirmala Sitharaman, while speaking at an event of the Corporate Affairs Ministry as part of the ‘Azadi ka Amrit Mahotsav’, had said that retail investors seemed to act as “shock absorbers” even when foreign portfolio investors kept their bets away from the Indian equity segment.

“Retail investors seem to act like shock absorbers… Even if FPIs went away, our markets did not really have to show their ups and downs in a very distinct way because small investors in the country have come in a big way,” Sitharaman, who is also in-charge of the Corporate Affairs Ministry, had said.

Her comments hold sense as a lot of retail investors have made a beeline for the Indian markets in the past few quarters, especially after the Covid-19 pandemic broke out, which many financial experts believe was due to excess liquidity in the economy.

In recent months, the stock market has been witnessing significant volatility with foreign portfolio investors (FPIs) going on a selling spree amid tightening monetary policy actions to address rising inflation and geopolitical tensions.

Rising interest rate is typically a deterrent to economic growth as it raises lending costs for the industries and corporates.

Foreign investors have pulled out over $42 billion or Rs 3.26 lakh crore from the Indian markets in the last eight months.

However, the silver lining came as domestic investors pooled in over $32 billion or Rs 2.5 lakh crore during the same period.

In fact, these changes in the trend of investment patterns are not new.

Global investment bank Morgan Stanley had said in late April the combined holdings of the domestic mutual funds and direct households in stocks have risen over 600 basis points since 2015, whereas those of FPIs have declined about 150 basis points.

It can be gauged by looking at the figures of opening of the dematerialised (demat) accounts in the country.

Opening of new demat accounts, monthly, on an average increased seven-fold since financial year FY20.

In FY20, average new demat accounts was at 4 lakh per month, whereas it increased to 12 lakh in FY21. In FY22, it rose to around 29 lakh, which is more than seven times as against FY20.

The cumulative demat accounts which stood at 3.6 crore as on March 2019 were 7.7 crore at the end of last year, which essentially means what was achieved in two decades has been achieved in the last two-and-a-half years.

One has to accept that internet technology and mobile-based investing platforms are key enablers in the democratisation of the equity market culture among the masses in India.

Not just retail investors, footfalls of domestic institutional investors with deep pockets too are high in the markets and they have the capabilities to purchase equities of match amount to that of the foreign institutional investors.

Because of the large participation by domestic investors, the decline in indices in recent months in India has been relatively lower as compared to the US and various other major global exchanges.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to print (Opens in new window)

Related

Indo Asian News Service

Indo Asian News Service

LATEST UPDATES

G A Mir resigns as JKPCC chief

Precious Kashmir 06/07/2022

Semi-decomposed Body of Newborn Baby Found Inside River in Kokernag Anantnag

Precious Kashmir 06/07/2022

Irregularities in Award of Civil Works of Kiru HEP: CBI searches 16 locations in 5 cities

Precious Kashmir 06/07/2022

7 Persons Injured in Road Mishap Along Srinagar-Jammu Highway in Banihal

Precious Kashmir 06/07/2022

India’s daily Covid tally rises to 16,159

Indo Asian News Service 06/07/2022

MeT forecasts light to moderate rain in Jammu, occasional showers in Kashmir

Precious Kashmir 06/07/2022

After remaining suspended for a day Amarnath Yatra resumes again

Precious Kashmir 06/07/2022

IED Detected, Defused In Baramulla district

Precious Kashmir 06/07/2022

Two newly recruited local LeT militants surrender in live gunfight at Kulgam: Police

Precious Kashmir 06/07/2022

Gunfight rages in Kulgam

Precious Kashmir 06/07/2022

Delhi-Dubai SpiceJet flight diverted to Karachi after technical snag

Indo Asian News Service 05/07/2022

Tangdar-Chowkibal road closed for vehicular movement after landslides

Precious Kashmir 05/07/2022

Missing Sheeri boy found dead, body recovered from Namlam waterfall

Precious Kashmir 05/07/2022

MeT predicts more rains in J&K in next 24-36 hours

Precious Kashmir 05/07/2022

Amarnath Yatra temporarily suspended due to inclement weather

Precious Kashmir 05/07/2022

Fresh mudslides at Kullan Gund force closure of Srinagar-Leh highway

Precious Kashmir 05/07/2022

3.2-magnitude quake strikes J&K

Indo Asian News Service 04/07/2022

Motorcyclist, Pillion Rider Killed in Kupwara Road Accident

Precious Kashmir 04/07/2022

Isolated light rains forecast as temp stays above normal in Kashmir

Precious Kashmir 04/07/2022

6 sticky bombs, arms and ammunition recovered in Reasi: Police

Precious Kashmir 04/07/2022

Minor Girl Killed, Her Father and Grandfather Injured As Brick Wall Collapses in Shopian

Precious Kashmir 03/07/2022

KNO Executive Editor Bereaved, mother passes away

Precious Kashmir 03/07/2022

SIA raid in Budgam

Precious Kashmir 03/07/2022

2 LeT militants apprehended by villagers in Reasi: Police

Precious Kashmir 03/07/2022

Rains Lash Jammu, Elude Kashmir As Temp Hovers Above Normal In Valley

Precious Kashmir 03/07/2022
Precious Kashmir

Copyright © 2020 Precious Kashmir.

Navigate Site

  • Home
  • About Us
  • Contact Us
  • Advertise with Us
  • Terms of Service

Follow Us

No Result
View All Result
  • Home
  • Front
  • Jammu & Kashmir
    • City
  • Anchor stories
  • Business
  • Sports
  • National
  • World
  • Opinion
    • Edit
    • Interviews
    • Letters
  • epaper

Copyright © 2020 Precious Kashmir.