Indian retail investors sell stocks at fastest pace since 2023
What's the story
Indian retail investors, including proprietary traders and direct stock buyers, have sold ₹19,700 crore ($2.2 billion) worth of local shares on a net basis this quarter. The data from the National Stock Exchange shows that this is the biggest quarterly sell-off since June 2023. The trend comes as India's stock benchmark, the Nifty 50, has gained some 10% this year but still lags behind its Chinese, Taiwanese, and South Korean counterparts due to a lack of AI investments in India.
Investment shift
Retail investors shift to precious metals amid market uncertainty
The Nifty 50 Index is on track for its 10th consecutive year of gains but has failed to breach last year's record high. Abhishek Banerjee, CEO of LotusDew Wealth and Investment Advisors, said some retail investors are shifting their investments toward precious metals due to their strong performance this year. This shift is further contributing to the pressure on equities in India.
Catalyst
Indian stock market ends 3-day losing streak
Benchmark Indian indices recovered on Wednesday, ending near record highs and breaking a three-day losing streak as investors grew optimistic over possible US Fed rate cuts. The BSE Sensex rose 1,022.5 points to 85,609.51, while the Nifty 50 climbed 320.50 points to 26,205.3. "We need one to two major pieces of good news to take sentiment ahead — like a good US trade deal or a nice GDP print due soon," Banerjee said.