'Most hated all-time high?': Zerodha founder's take on retail investors' activity in current stock market rally1 min read 03 Dec 2022, 10:45 AM IST
The monthly new demat account openings are down ~40% even though stock markets are back to highs, said Zerodha's Nithin Kamath
Surging to record high levels this week, the benchmark BSE Sensex had jumped 2,139 points or 3.49% in the past eight days whereas the NSE Nifty 50 rose 3.6% over the last eight sessions, boosted by expectations of smaller rate hikes by the Fed from its December policy meeting. The Nifty Midcap 100 outperformed its larger peers, climbing 4.5% in the last eight days.
A demat (dematerialization) account is for investors to hold their variety of investments such as shares, mutual funds and securities in an electronic format.
The Indian stock market has outperformed most emerging markets (EMs) this year with the benchmark indices Sensex and Nifty surging back to record high levels as foreign institutional investors (FIIs) doubled down on Indian shares in November 2022, and, as per experts, are now holding the highest quantity of bullish bets on Nifty and Bank Nifty futures in three years and seven months.
Meanwhile, global stocks were subdued as optimism over signs the Federal Reserve may temper its aggressive interest rate hikes was replaced by worries the economy might be headed for a recession.
The US Federal Reserve Chair Jerome Powell recently signaled a pivot in monetary policy away from ultra-aggressive interest rate hikes to counter inflation. Powell said that the US central bank could slow the pace of interest rate increases as soon as at its December meeting. However, several Fed officials including Powell have lined up to warn that rates will continue to rise and stay elevated, with the possibility of no cut until 2024.
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