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:…

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More from @deepakshenoy

1 Feb
The Big Massive Thread on #Budget2021 - our take at @capitalmind_in
From the economic survey: India's debt situation isn't that horrible. Total debt, which includes debt taken from abroad, is about 122% of GDP - where government debt is 70%. Remember this - because most other countries have hiher govt debt and much higher private debt.
If Covid has hit us badly - and it has, even if markets are like what is wrong with you Deepak - we will recover the fastest. It's just math, though - just getting back from a steeper fall is a higher rate.
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10 Jan
Remember this?
It was made when the Dow Jones was here:
The market did correct a whopping 20%....more than a year later. The bottom point of that 20% correction was...uhm, no, let's see it:
Read 6 tweets
15 Dec 20
Does Franklin get away clean after this episode? My thoughts have been with unit holders, but I think we need to speak of a SERIOUS fine for Franklin Mutual Fund for bringing this episode to this shameful end. (Thread)
First, SEBI needs to fine Franklin an entire two years of management fees on the shuttered funds. The money needs to be added back as cash to the funds immediately. This should be upwards of 300 cr. and a decent coverage for defaults if any.
Second, SEBI should appoint a different mutual fund - perhaps one that has much better debt experience, and I'm looking at you, IDFC MF, which should take over the closing down operation of all the shuttered funds immediately. Pay the appointed fund a fee from the Franklin fine.
Read 10 tweets
9 Dec 20
Folks - if you can't pay back your EMI, please create a new bank account at a different bank (Kotak, IDFC and a few others allow it to created online) -…

Also notify your lender that you are unable to pay your EMI and to not auto-debit.
Also notify your current bank to not honour any auto-debit from the lender as the loan is under negotiation, and thus to not charge you auto-debit fees.

Then keep zero balance in that account. Get your lender to negotiate, reduce rates, and give you more time.
Read 7 tweets
17 Nov 20
Laxmi Vilas Bank placed under moratorium. This means they're going to mount a rescue of some sort. It's a small bank but we expect
a) Tier 1/2 bond writedowns
b) Equity capital will need to be infused for a rescue
They have Tier 1 + 2 capital of 148 cr. (march 2020) which would have dwindled further. Even a full write down of Tier 2 bonds - roughly 270 cr. - will not be enough. The bank needs 1300 cr. of capital, at the very least.
Ok, update: RBI does a full merger with DBS Bank India.…

Shareholders wiped out (Shares go to 0)
All depositors will be paid in full, after the moratorium.
Read 11 tweets
31 Oct 20
The Loan compound interest waiver is interesting. Banks and NBFCs have to pay you money, into your account, the interest on interest calculated for the moratorium period. Even if you didn't take the moratorium or paid back in time.…
And the money has to be paid before 5 November. And you don't need to apply or anything - the bank needs to calculate and pay on its own.

And then it can claim the money back from the government.
Interestingly, even a 0% interest loan will pay you money back!

(A Zero percent EMI is actually at a higher interest rate - check:…)
Read 4 tweets

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