Posts

Showing posts with the label retail investors

As Wall Street gets worried, retail investors keep buying US stocks

Image
[hfe_template id='11223'] [ad_1] Even as Donald Trump’s trade war sends the US stock market hurtling toward a correction, the individual investors who rode the bull run to record highs haven’t yet given up their faith. The so-called retail investors poured $7.3 billion into equities in the week through Wednesday, when they boosted exposure to perennial favorites like Tesla Inc., according to Emma Wu, a global quantitative and derivatives strategist at JPMorgan Chase & Co. They weren’t riding the usual momentum upward. In fact, the S&P 500 Index slipped over 4% and big tech stocks gave up even more. But, unbowed, they also put billions into leveraged exchanged traded funds that magnify the returns on indexes like the Nasdaq 100 or popular funds like the ARK Innovation ETF (ticker ARKK) run by Cathie Wood. Bloomberg The push reflects confidence that’s built up since the Global Financial Crisis as US equities — with a few exceptions — tended to rise year after year....

Small & midcap outflows rise: Where is smart money moving? Sanjay Shah answers

Image
[hfe_template id='11223'] [ad_1] After a period of heavy selling in small and midcap stocks, investors are now re-evaluating their investment strategy. With retail investors holding firm despite market volatility, the focus is shifting towards balanced advantage funds, multi-asset allocation, and largecap schemes, according to Sanjay Shah, CMD at Prudent Corporate, who recently spoke to ET Now about the latest investment trends. While small and midcap stocks have seen significant volatility in the past few months, retail investors have not rushed to redeem their holdings. Shah noted, "Frankly, retail level pain has not come yet, retail has not redeemed at all. So, it is very difficult to say whether the pain will come back or not." However, he cautioned that as the market recovers, some investors may book profits, leading to gradual redemptions in small and midcap funds. Where Is the new money flowing? With investors seeking stability over high-risk bets, there...

Trump, RBI and India's Budget: A triple whammy for investors in 2025

Image
[hfe_template id='11223'] [ad_1] The strong equity performance for the past few years has resulted in greater equity investments by retail investors, improved investor sentiment, deeper penetration of mutual funds and SIPs, outperformance by mid and smallcap stocks and funds, reinforcement of faith in the strength, vibrancy and resilience of the Indian economy, and a higher degree of confidence in markets and their potential. It has also given rise to unrealistic expectations about the magnitude and timing of equity returns in the short run. The economy has been slowing down in patches for some time and FPIs have been selling relentlessly, but the continued retail inflows and the faith in the Indian economy have eclipsed the underlying ground realities. In the last few weeks, equities have corrected sharply, personal portfolios are bleeding and there is a question mark now whether to hold, buy or sell. TRUMP There are multiple sources of uncertainties. The US remains the...

#25 For 2025: Will retail investors brave market swings to stay put?

Image
[hfe_template id='11223'] [ad_1] One of the steadiest sources of money flows into the stock market in recent years faces the risk of ebbing in 2025 if equities fail to repeat performances in the recent past. Flows through systematic investment plans (SIPs) into equity mutual funds-the equivalent of recurring fixed deposits in banks-crossed a record ₹25,000 crore every month in the past three thanks to strong returns. But amid forecasts for a tough year for stocks in 2025, market participants are wondering whether individual investors will pour money into equity schemes. SIPs have been a convenient way for retail investors to put small amounts into mutual fund schemes every month. Of this, 90-95% went into equity-oriented funds. The numbers speak about their popularity. In FY21, flows through SIPs were ₹8,007 crore, doubling from ₹3,660 crore in FY17. One reason for their popularity is strong returns from equity mutual funds. Investments made in Nifty 50 through SIPs have...

Primary markets can become as efficient as secondary markets

Image
[hfe_template id='11223'] [ad_1] Our regulators, effectively leveraging technology, are constantly moving towards higher efficiency and improved processes in our secondary trading markets. Now, we have reached a level of T+0 settlement and are also envisioning instantaneous settlement. There has been marked improvement in the efficiency of our primary markets as well. SEBI’s efforts to explore Artificial Intelligence (AI) for processing offer documents more efficiently in a time bound manner, if successful, will be a considerable step in that direction. Public issuance timelines and post issue activities have already been cut significantly. IPO timelines are down from almost 2 to 3 months post SEBI clearance to just about 10 to 12 days. Can this be further improved? One area which can make a big difference in our IPO timeline is participation of the retail investors directly into IPO subscription. Retail and High Networth Individual (HNI) are important constituents of th...

The rising impact of retail investors on debt capital markets

Image
[hfe_template id='11223'] [ad_1] Traditionally, the debt market has been the domain of banks, mutual funds, pension funds, and insurance companies, which are the primary institutional heavyweights. However, times are changing. The Rs 2.64 trillion debt market (Source: SEBI and ICCL) is seen as a significant opportunity for retail investors and is on the cusp of a major transformation. It's encouraging to see the regulator stepping forward with substantial reforms that have driven the 'retailization' of the bond market, the most notable being the reduction of the face value for retail debt participation from Rs 10,00,000 until January 2023 to Rs 10,000 now. To provide some context, a total of 45 NCD corporate public issues were conducted by 25 issuers, raising Rs 19,167 crores (+2.08x growth YoY as per SEBI) in FY 2023-24. The outstanding corporate bond market now stands at US$ 576 billion. Many smaller companies are now able to raise funds from debt capital m...

The illusion of control: Why so many believe they can beat the market in India

Image
[hfe_template id='11223'] [ad_1] Stock markets have an irresistible allure. The possibility of generating outsized returns entices countless investors into believing they have the edge over the market. In India, stories of rapid economic growth, booming tech sectors, and financial inclusion further fuel this belief. But how many investors consistently beat the market? The harsh reality: very few. Yet, the illusion of control – the tendency to overestimate one’s ability to influence outcomes – persists. India’s digital transformation has democratized investing, allowing millions of retail investors to enter the stock market. But with this access has come overconfidence. From influencers touting overnight gains to retail platforms simplifying stock picking, many believe that beating the market is just a matter of effort and timing. But is it? Firstly, Why do investors think they're special? At the heart of the illusion of control is overconfidence. Many investors, espe...

Ashish Kacholia invests in AI-based wealthtech platform

Image
[hfe_template id='11223'] [ad_1] InvestorAi, AI-powered equity investment platform, has announced that it has raised Rs 80 crores in a Series A round from well-known investor Ashish Kacholia, Founder, of Lucky Investment Managers, and his associates. Funds raised will be used for scaling the business and adding new products. Positron, a Mumbai-based Consulting and Capital Advisory firm, was the exclusive advisor to the transaction, according to a press release. Ashish Kacholia, Founder, Lucky Investment Managers posted on social media platform X mentioning that his new investment is in AI-based stock basket manufacturer InvestorAi which has an outstanding track record of solid returns and is available through several marquee brokers. “My new investment in AI-based stock basket manufacturer InvestorAi which has an outstanding track record of solid returns and is available through several marquee brokers such as HDFC Securities, Geojit, PL, Axis securities, and at https://...

Suzlon Energy shares: Smart retail investors book profits as big boys buy

Image
[hfe_template id='11223'] [ad_1] Retail investors, who are often ridiculed for buying at peak and selling in bear markets, played it smart this time. Suzlon Energy saw small investors book profits in the June quarter even as both the big boys - FIIs and mutual funds - bought. The shareholding of retail investors, who were early birds in the multibagger rally, went down from 25.93% in March quarter to 23.16% in the June quarter. On the other hand, MFs doubled down their holding in the stock from 1.86% to 3.82% quarter-on-quarter. FIIs also increased their stake to 21.53% in the June quarter from 19.57% in the March quarter, up from 17.83% in Q3 FY24 and 10.88% in Q2 FY24. Suzlon Energy’s stock has shown impressive performance, with a nearly 90% return from April to date and over 300% in the past one year. Over the last two years, the stock has surged by more than 1,000%. Aamar Deo Singh, Senior Vice President of Equity, Commodity & Currency at Angel One, advised that ...

Margin trading in Japanese stocks sharply shrinks after market rout

Image
[hfe_template id='11223'] [ad_1] Trading using borrowed money, or margin trading, in Japan's stock market fell sharply last week as investors were forced to dump stocks during the Nikkei index's biggest fall in nearly 40 years. BY THE NUMBERS Margin trading, which involves using borrowed cash from brokerages to ramp up bets in the stock market, is popular among Japanese retail investors. Margin trading accounts for about 70% of retail trading value, the exchange data shows. The value of shares bought on margin fell by 907 billion yen ($6.15 billion) to 4 trillion yen in the week ended Aug.9, from the previous week's 4.87 trillion yen, according to Japan Exchange Group, which runs the Tokyo Stock Exchange. The amount hit a record high of 4.98 trillion yen in the week of July 26. The Nikkei plunged 12.4% on Aug. 5 in the market's biggest single-day decline since the 1987 Black Monday crash and bounced back 10% the following day. The index fell as much as...

India will remain top choice for private equity investments despite external shocks: Jefferies

Image
[hfe_template id='11223'] [ad_1] New Delhi [India], August 9 (ANI): Global brokerage firm Jefferies in its latest report identifies India as a prime market for listing private equity (PE) investments, suggesting a huge pipeline for investment bankers globally. The report noted that despite the challenges faced by the private equity industry, including a liquidity squeeze and declining distributions from major firms, India remains a favorable environment for capital raising and investment opportunities. "This year a report, suggests a potentially huge pipeline for investment bankers globally but will there be the demand for all the stock and at what valuations. For now, as previously, the best market for listing PE investments remains India" said the report. The report also noted that the growing likelihood of a renewed easing cycle by the Federal Reserve could provide relief to the leveraged private equity sector. However, it also raises concerns about potentia...