Small investors make up a big bunch. Do they pack a punch too?
MUMBAI : Individuals who invested up to ₹10,000 in the stock market made up a third of the entire investing community, including institutional and non-institutional, November data from National Stock Exchange (NSE) showed, even as their contribution to the turnover remained fractional. The data, considering so-called active investors who invested at least once a month, shows how an increasing number of small investors has been crowding the market bandwagon and investing part of their investible surplus in stocks in the past few years since the pandemic years of 2020-21 and 2021-22.
Understandably, the value of trades of those investing less than ₹10,000 totalled ₹530 crore, or just 0.04% of the share of total turnover of ₹14.82 trillion, accounted for by all investors—institutional, proprietary, retail, high-net-worth individuals (HNIs) and corporate, NSE data showed. A total of 10.7 million investors were active on the country’s largest exchange, accounting for 93% share of the capital markets segment turnover, with BSE a distant second.
Interestingly, those trading between ₹10,000 and ₹1 lakh stood at 36.5% or 3.91 million investors, showed NSE data, the largest category of active investors. But, in terms of turnover , they too accounted for a mere 0.5% of total turnover or ₹7,450 crore.
The category between ₹1 lakh and ₹10 lakh was the third-largest at 2.32 million, which accounted for ₹38,800 crore or 2.6% of turnover . The Securities and Exchange Board of India (Sebi) categorizes retail investors as those investing up to ₹2 lakh in an initial public offering, and those above that threshold as HNIs, including resident individuals, non-resident Indians, Hindu Undivided Families, corporates, academic institutions,
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