10 April 2024 – The surge of retail investors into India’s capital markets post-pandemic has reshaped the investment landscape, with Zerodha’s Nithin Kamath revealing that investors on the Kite platform now possess a staggering Rs 4.5 lakh crore worth of assets in their demat accounts. This influx reflects the unprecedented expansion of India’s markets amidst the pandemic recovery.
The post-pandemic boom in India’s markets has been remarkable, with millions of retail investors gravitating towards capital markets to seek wealth growth beyond traditional avenues. Zerodha’s Nithin Kamath highlighted the magnitude of this shift, underscoring the substantial Rs 4.5 lakh crore worth of assets held by investors on the Kite platform. This surge in retail participation underscores the significant transformation of India’s investment landscape post-Covid.
Amidst the global pandemic recovery, Indian equities have notably outperformed global peers, buoyed by robust market liquidity. Despite concerns surrounding valuations, domestic markets have continued to scale new heights, with the combined market capitalization of all listed stocks reaching Rs 400 lakh crore earlier this week, a significant milestone achieved in just nine months since crossing the Rs 300 lakh crore mark in July last year.
The rally in the market has been particularly pronounced in smaller stocks, with numerous small and midcap stocks delivering multibagger returns. India’s market capitalization trajectory reflects a remarkable journey, crossing key milestones such as Rs 50 lakh crore in 2007, Rs 100 lakh crore in 2014, and Rs 200 lakh crore in February 2021, followed by a doubling of market cap in just over two years.
Retail investor participation has surged significantly, with demat accounts ballooning to 151 million in March 2024 from 36 million in March 2019. Cumulative domestic equity inflows have amounted to $92.7 billion over the last five years, indicating a robust appetite for equities among Indian investors.
