Rise of retail investors and the risk therein3 min read . Updated: 17 May 2022, 12:40 AM IST
A combination of factors have fed the spurt in retail investors investing directly in Indian stocks over the past two years. How they weather the current volatility will determine if they are in for the long haul
On 4 April, finance minister Nirmala Sitharaman hailed Indian retail investors for investing large sums of money in Indian stocks, thereby cushioning the markets from external shocks. This was in response to a question in Parliament on the flight of foreign institutional investors (FIIs) in the backdrop of a war in Ukraine and a hike in interest rates by central banks worldwide. Greater buying of Indian stocks by retail investors is partly offsetting such sales, though this carries its own risks and vulnerabilities.
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