Household savings coming into stock market is a trust we must protect, says FM Sitharaman

Finance Minister Nirmala Sitharaman on May 14 underscored the rapidly evolving dynamic of household savings, and said families are actively opening demat accounts believing in the Indian stock market.

Speaking at the Viksit Bharat 2047 event at BSE, Mumbai, FM Sitharaman said households savings is finding way into equities, that shows the trust in the market. "Middle class families realise that even if it is risk laden, there are better returns," thus showing willingness to investing in stocks and share, FM added.

REITS and InvITs, the Finance Minister added are also two fantastic instruments introduced by the Indian Financial market. “Today, sovereign funds are happy to come and invest in them because they see them as a very powerful instrument transfer instrument through which they are able to invest and earn money, " she noted adding that the growth which we have seen in the last 5 years - the combined NAV surging from Rs 10,000 crores around 5 years ago to Rs 2.5 lakh crores today. The bond markets, debt markets have also come along with the corporate bond market size that is outstanding amounts growing by about 30 percent in the last 3 years, Sitharaman added.

So they may not be actually any fluctuation despite the win-seek and FPI movements. Indian owned savings which are coming from small retail investors is providing the shock observer Sitharaman said. “This persistent flow of domestic surge savings towards the stock market has actually played one very important role. They have become now the counterbalancing force when FPI's come and go.”