'The most hater all-time high?': Zerodha founder's take on retail investor activity in the current stock market rally

 'The most hater all-time high?': Zerodha founder's take on retail investor activity in the current stock market rally

Nitin Kamath of Zerodha said that monthly new demat account openings have declined by ~40% even though the stock markets are again on a high. 

To hit higher levels this week, the benchmark BSE Sensex had jumped 2,139 points or 3.49% in the last eight days, while the NSE Nifty 50 was up 3.6% in the last eight sessions, boosted by expectations of a small rate hike by the Fed was. December policy meeting Nifty Midcap 100 outperformed its larger peers by climbing 4.5% in last eight days. 

Bengaluru-based online brokerage firm Zerodha said that despite Indian stock markets hitting a record high, the participation and activity of retail investors is not nearly as high as the markets hit during the same time last year. Founder and CEO Nitin Kamath. 

"Highest Hatred 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% even though markets are hitting higher again,” Kamath said in a tweet. 

Most hated from All Time High? 

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 opening has declined by ~40% even though the markets are again at higher levels. 

— Nithin Kamath (@Nithin0dha) December 2, 2022 

A Demat (dematerialization) account is meant for investors to hold their various types of investments such as shares, mutual funds and securities in an electronic format. 

The Indian stock market has outperformed most emerging markets (EM) this year, with benchmark indices Sensex and Nifty pulling back higher, as foreign institutional investors (FIIs) doubled down on Indian stocks in November 2022, and According to experts, now in three years and seven months, Nifty and Bank Nifty futures are trading at the highest level of bullishness. 

Meanwhile, global stocks declined as optimism was replaced by concerns the economy could be headed for recession on signs the Federal Reserve may ease its aggressive interest rate hikes.