Thread by @deepakshenoy

Retail individual investors are the biggest player in our markets. Not FIIs, and not mutual funds. Look at the equity market (non derivative). (Thread)

45% of India's stock market volumes are from retail investors. Up from 33% in 2016.

FIIs went from 23% down to 11%. Domestic institutions at 7%.

And look at the index futures market:

Individuals do 39% of index futures. FIIs merely 15%.
Domestic institutions are 1% - Rest is mostly prop books of brokers.

In index options, prop books dominate at 39%, but retail's gone up from 22% to 32%. FIIs only 16%.

Even in Interest Rate futures (!!) retail seems to have suddenly gone to 14% of the market:

In essence, the market is largely traded by retail investors. Domesticmutual funds are a tiny part of the game. But here's a statistic that will shock you further.

Despite now having 45% of the trading volumes of the market, retail stock ownership has been flat the last three years, at only 18% of non-promoter shares ("float")

FIIs own 43%, Domestic MFs own 15%. Insurers and others have actually reduced their ownership as a %.

And then, from 2001, when promoters owned 40% of the market, now they own 50%.

FIIs went from under 10% to 21%.

Retail investors fell from 18% to 9%.

Looks like foreign investors (and domestic mutual funds) don't trade that much but are continuously increasing their marketshare of ownership.

Retail is just the opposite!

Source: NSE's awesome market pulse letter at: static.nseindia.com//s3fs-public/i…

For posterity: capitalmind.in/2021/05/omg-th…