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Budget 2023
Budget 2023

David trumps Goliath as retail investors flex $19-billion buying power

In 2021, retail investors were net buyers of stocks worth $19 billion in the cash market, while institutional investors were net sellers of stocks worth $7 billion, NSE data shows

Mumbai / February 04, 2022 / 03:13 PM IST

Retail investors have emerged as a major cohort in India’s $3-trillion stock market during the COVID-19 pandemic. Their immense buying power in the last year has dwarfed goliaths like domestic and foreign institutional investors.

In 2021, retail investors were net buyers of stocks worth $19 billion in the cash market, data released recently by the National Stock Exchange shows. By comparison, institutional investors were net sellers of Indian stock worth $7 billion in the same period.

The net inflow of $12 billion in the stock market in 2021, therefore, came entirely from the wallets of retail investors. NSE defines retail investors as individual investors, non-resident Indians, sole proprietors and Hindu Undivided Family.

“Institutional class as a whole, and rightly so, has become a lot less important,” veteran investor Shankar Sharma told Moneycontrol in a post-Budget panel discussion.