MUMBAI: There is growing evidence that Indian retail investors are fast turning into speculators with a majority losing money in the stock market.
A new study by Sebi‘s research division in the cash section of the stock market for FY23 showed that one in three investors in the segment indulged in intra-day trading. And of those who traded, seven out of 10 lost money in the market.It also showed that the percentage of young traders (those below 30 years) increased from 18% in FY19 to 48% in FY23.
“The study finds that the number of individuals trading intra-day in the equity cash segment has increased from around 15 lakh in FY19 to 69 lakh in FY23 (4.6 times). This surge in participation has been associated with a rise in traders with low turnover, traders who trade less frequently, young traders and traders from Tier-2 and Tier-3 cities. The study also found that the share of ‘very small’ traders, those with an annual intra-day turnover less than Rs 50,000, increased to 56% in FY23 from 27% in FY19.
Earlier another Sebi study had pointed out that in the equity derivatives segment of the market, nine out of 10 traders lost money. tnn
A new study by Sebi‘s research division in the cash section of the stock market for FY23 showed that one in three investors in the segment indulged in intra-day trading. And of those who traded, seven out of 10 lost money in the market.It also showed that the percentage of young traders (those below 30 years) increased from 18% in FY19 to 48% in FY23.
“The study finds that the number of individuals trading intra-day in the equity cash segment has increased from around 15 lakh in FY19 to 69 lakh in FY23 (4.6 times). This surge in participation has been associated with a rise in traders with low turnover, traders who trade less frequently, young traders and traders from Tier-2 and Tier-3 cities. The study also found that the share of ‘very small’ traders, those with an annual intra-day turnover less than Rs 50,000, increased to 56% in FY23 from 27% in FY19.
Earlier another Sebi study had pointed out that in the equity derivatives segment of the market, nine out of 10 traders lost money. tnn