INSUBCONTINENT EXCLUSIVE:
In recent weeks, brokerages have lowered their outlook for the Indian stock market.New Delhi: Nithin Kamath, the chief executive officer of
India's largest online brokerage, estimates that his platform handles 10 to 12 million orders on the average day
They're increasingly from first-time investors under the age of 30, executing dozens of trades at lightning speed off their mobile
phones.Young investors like those on Kamath's Zerodha Broking Ltd
-- which has come to be known as India's Robinhood Markets Inc
BSE Sensex Index rose over 20% in the first 10 months of this year, aided by the central bank's efforts to pump liquidity into the economy
But it's dropped nearly 8% from an all-time high touched in October, partly on expectations that interest rates will rise amid a pick up in
economic activity and inflation
have lowered their outlook for the Indian stock market, flagging pricey valuations
Meanwhile, a poor debut for the nation's largest ever initial public offering, from digital payments pioneer Paytm, has already left many
But returns on traditional investments like savings deposits remain low, encouraging India's millennials to keep pouring money into
investments in equities during the pandemic after strict lockdowns around the world brought the hospitality industry to a grinding
He isn't pulling back now, and he's even pushing younger cousins and other family members to put some of their savings into equities in
stocks plunged worldwide on signs that the coronavirus was spreading globally, India's Sensex has risen about 119%, the highest among
countries with stock markets worth $1 trillion or more.Some analysts see reason for caution
Despite the recent declines, the one-year forward price-to-earnings ratio for the Sensex is near 21, compared to 12.3 for MSCI's Emerging
IPOEarlier this year, Devashish Pahwa, a 31-year-old entrepreneur in New Delhi's apparel industry, invested about Rs 200,000 from his own
and his family's accounts in One 97 Communications Ltd., the operator of Paytm
But the stock has plunged 39% since its listing last month due to doubts over the startup's path to profitability
It reported a wider loss for the latest quarter.Paytm is a household name in India and Pahwa says he didn't look into its financials as
closely as he usually does before investing
Although he's become more cautious, he hasn't sold any shares of Paytm or booked profits on his other stock investments, which are worth
between Rs 350,000 to Rs 400,000
He also says he will buy into any company that he expects to do well in the coming years, especially when shares are falling since that
early 2020, India was adding 400,000 investor accounts every month, according to its market regulator
was one of the best months for brokerages
Zerodha opened nearly 400,000 new investor accounts last month, while competitors like Angel One and 5paisa.com said they also added similar
versus an average 30% for other major emerging markets, according to Gaurav Patankar, an analyst at Bloomberg Intelligence
Households in Latin America hold more than 40% in equities, while the U.S
Tikekar, head of global markets, India at BNP Paribas SA
