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'Don't have a clue': Zerodha CEO Nithin Kamath on views about markets

Zerodha CEO Nithin Kamath, however, also pointed out that if the US bear market continues, the Indian market too may follow the trend.

August 30, 2022 / 08:04 PM IST
Zerodha co-founder and CEO Nithin Kamath.

Zerodha co-founder and CEO Nithin Kamath.


Days after Zerodha--India's most successful stock brokerage firm-- turned 12 and recorded a customer base of over a crore, its co-founder and CEO Nithin Kamath said that despite spending about 25 years in the industry, when people ask him about his views on the markets, he doesn't have a clue.

"People keep asking about my views on the markets. I've been at it for ~25 years and I don't have a clue. I usually say whatever the current trend will continue, as that is most probable," he tweeted on Tuesday.

"But over the last year, I've been consistent that India will most likely outperform. By outperforming, I don't mean our markets will go up, but we will probably not fall as much as others. And if we don't fall as much, we will probably outperform on the upside. This is because of negligible leverage in our markets and all the folks waiting to invest in India."

In a Twitter thread, Nithin Kamath further explained that in bearish times, when buying interest is low, forced liquidation of leveraged positions creates havoc. The down moves are exaggerated, as witnessed in highly leveraged markets like the US or even crypto in the last year. "By the way, this also creates spikes on the way up," he said.

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Elaborating on the buying interest in India, the Zerodha co-founder added, "Almost every time markets gap down, we've seen more investors logging in; historically, it was the opposite. I guess this means huge buying interest. Even on the institutional side, local and foreign, private and public, there's a lot of interest in India compared to others."

Read more: 'How to become a co-founder at Zerodha?' Nithin Kamath's response is winning internet

Kamath, however, also pointed out that if the US bear market continues, the Indian market too may follow the trend. "But I guess we will continue to outperform on the downside and be less volatile," he said, adding, "My neutral to slightly bearish view on the broking industry is because of what has been happening in the US over the last year. To do well, we need a bull; bear/neutral isn't enough.

Read more: Zerodha customer base crosses 1 crore. Nithin Kamath explains how

 
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first published: Aug 30, 2022 07:57 pm
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