New Delhi: Zerodha CEO Nithin Kamath has latter said that the retail trading in India is declining owing to the volatility in the market. The small individual traders are retail traders, which trade in stocks and derivatives.
Within the recent years, a great number of young Indians joined the stock market, particularly throughout the pandemic. The trading was popular because the app was easy to use and the brokerage fees were low. But new market vagaries have put investors on their guard.
Investor confidence has been impacted by uncertain conditions in the world, increasing interest rates and falling markets suddenly as described by Nithin Kamath. Risky trades are now being shunned away by many traders and their activity is decreasing.
Zerodha has observed a decline in the number of new accounts and trading volumes being done on a daily basis. According to Kamath, this is a positive development because investors are increasingly becoming risk conscious.
He also told novice traders against taking the stock market as a gambling game. He believes that long-term investments and education are of greater emphasis than fast money.
