In recent trends, it has seen that the retailers are moving towards the equity markets or the stock market in India during the novel coronavirus lockdown period. At this time, when retail investors get stuck in their home, they are looking for an option where they can invest. As a result, they have found the Indian share market as one of the suitable places to invest in. Due to the whole phenomenon, since the 1st of April, the growth in the share market has been seen. The rate of nifty 50 has increased by 29.48%, and it is holding the 1100 mark. Whereas, the growth of The Nifty Midcap 100 remains 31.78% and the growth of the Nifty Small-Cap 100 has been increased to 37.08%. Several factors are present that are taking retail investors towards the equity market also.
The main factor
Since March to make the economy stable, many global banks are providing liquidity to the market. Some of the cash is also coming towards the equity markets. As a result, foreign investors, as well as retail investors, are taking an interest in the equity market. On that note, the retail turnover has increased to 57% read more on startup insider.
Why are investors moving towards the equity markets?
There are several factors present for which the investors are moving towards the equity markets. The preferable reason for the phenomenon is the fixed deposits, and the other fixed incomes are getting decreased. From the month of
March most of the cities have called a lockdown. As a result, the field of investing money is decreasing. The technology is allowing people to work online. Also, investors are being able to explore the equity market using the online method. Due to KYC norms, investors can join platforms. The investors are ready to invest in stocks with the help of mobile applications and online tools.
The turnover for the retail investors in the first quarter has turned to 78 per cent, and the cash segment has converted to 33731 crore rupees. Also, the number of Demat accounts are increasing, and it has reached 2.9 million until May month.
What will be the result for it?
The studies have said that the investors have helped to increase the economic factor by entering the share market by startup news . Though at the time when they have entered the market, it was in peak, the retail performance has also made it more robust. Most of the investors’ activity is increasing from the month of March.
Sum It up
Since the month of March, radical changes are taking place in the global economy. In one hand when the global pandemic is trying to destroy the economy of the world, on the other hand, technology is trying to increase the value of the global economy, thanks to the internet that it has made possible to work from home and explore the world from the inside of the house, as a result, sustainable results are coming from the stock market.