At a time when Indian stock markets are hitting new highs, Zerodha co-founder Nithin Kamath wondered on Friday if this is the most hated all-time high While markets are at all-time highs, the momentum in retail participation and activity is not nearly as high as it was last year. Even though markets are back to highs, the monthly new demat account openings are down 40%, he tweeted while attaching a chart showing the dip in demat accounts.
In the last 12 months, global stock markets have had a downturn, particularly after March 2022 when the US Federal Reserve hiked interest rates to try and stomp down the raging inflation.
Kamath's tweet was alluding to the surge in retail investor participation since the Covid lows when central banks across the world kept interest rates unchanged to stimulate the pandemic-hit economies and, consequently, stock markets surged.
The Indian share markets snapped an eight-session winning streak on Friday, but held on to weekly gains.
The S&P BSE Sensex was down 0.66% to 62,868, down 0.66%. The Nifty 50 index was 0.62% lower at 18,696 while the Nifty 50 index was 0.62% lower. The last eight sessions of the Nifty 50 went up by 3.6%.
In the comments section, Kamath said that retail investors are going to offices and their personal times because of the demat additions post Covid lows.
Another user said since Nifty has hit 15,200 in June, retail investors are very cagey about the bear market and the subsequent crash that might be seen in 2023, as many analysts are expecting.
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