Young Indian Investors are Making it Big in Stock Market Trading
Young Investors in India are making it big time in the stock trading recently. Millions of investors are flocking to the online stock markets since the start of the pandemic.
Young Investors in India are making it big time in the stock trading recently. Millions of investors are flocking to the online stock markets since the start of the pandemic. They have been investing in stocks to make good up the losses that they incurred due to the salary cuts.
Another reason is that since the pandemic struck the world almost all companies have ordered their employees to work from home till further orders. Uncertain economic woes have also made people find out new options to earn income to incur daily expenses.
CDSL (Central Depositories Services India Ltd.) has witnessed nearly 20 per cent rise in opening of DEMAT accounts reaching more than 25 million in September 2020. This target has been achieved in the last six months since the first lockdown was imposed by the Indian Government in March 2020.
According to stock market regulator SEBI (Securities and Exchange Board of India), the majority of the accounts have been opened by clients aged between 24 and 39. That means millennials are more interested in online stock trading in India these days.
As the pandemic has started weighing upon the economic growth and interest rates in the country, efforts are being made by Indian millennial to increase the sources of their finances. Not just the online trading platforms but various other investment options available online have been recently dealing with investment rush mainly by young and inexperienced investors.
Zerodha, India's largest online trading platform by client numbers has recently claimed to handle between 5 million to 7 million orders daily. This is quite high than the United State's most popular platforms including Robinhood, which reported 4.3 million.
A 50 per cent surge in millennial investors has been seen between April and September at Stockal. Stockal is an online platform that helps Indians in investing in US stocks. This led to a 300 per cent increase in transactions at $ 160 million.
Similar to the US and other countries, where technology stocks have performed a lot in the last four to five months, Indian youths who are quite connected with the technology are buying technology stocks. Technology stocks have emerged as clear winners in India. The technology stocks have also surged due to an increase in the digital services amid the lockdown, which forced people to work remotely maintaining social distancing.
Exchange-Traded Funds (ETFs) and Tech stocks have emerged at the most preferred areas for investment in the stock markets. Electrical vehicle maker Tesla is among the investor's favourites till now.
Cube Wealth in its report has said that more than 25 per cent of Stockal clients have traded in Tesla. It added, other top traded stocks include Apple, Microsoft and Amazon. The demand for established investments remains strong yet.
Since the closure of many gold retail outlets in recent months due to nationwide lockdown, gold remains a major investment stock favourite. Gold as a digital investment has an increased demand in the online trading markets in recent times, which was once hoarded as a physical commodity by traditional Indian investors.