Deepak Shenoy Profile picture
Feb 2, 2022 8 tweets 3 min read Read on X
A thread 🧵on how much retail investors (individuals) dominate daily investing in the markets in India, from the NSE Pulse: static.nseindia.com//s3fs-public/i…

They're 41% of the stock market transactions - down from 45% in 2020-21. Still, massive.
Individuals are 29% of index futures - a big drop from 39% in FY 21 and give way to brokers (PRO).
They give way to FIIs and PRO in the stock futures segment, down to just 19% in FY22 (which is April 2021 to March 2022)
Clearly, those straddle and strangle videos are working - individuals are more than 1/3rd the index option market. FIIs said goodbye, and brokers also love this market. This is a source of worry - it's also the most leveraged segment (indexes have low IVs, so leverage is high)
Individuals love them stock options too, and together with brokers prop accounts, are over 80% of the market.
But none of this means they hold stocks.
🕴️‍♂️Promoters own 51% of stocks.
🤵 FIIs own 21%!
💼Mutual funds/Insurers 15%
🥷Retail investors 9.3%

(Rest is others)
FIIs own more than Mutual funds+Retail investors added up. Very different from the trading data where Retail investors is more than double of FIIs+Mutual Funds.

But might be changing. Here's mutual fund SIPs every month:
That's the end. Oh, do check out get.capitalmind.in/premium for Premium and get.capitalmind.in/wealth for our PMS.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Deepak Shenoy

Deepak Shenoy Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @deepakshenoy

Jun 19
India's net FDI is down substantially but it's not sinister. This is a great thread on the topic but let me add two important points.

One, that FDI is still strong incoming but outflows have increased. What does that mean? Aren't you mincing words, Deepak? Let me explain.
What is FDI? It's a foreign entity buying equity into an Indian company. Now you have FPI, which is portfolio investments by people like hedge funds and index funds and all that, into Indian listed companies. That is not fdi.

When suzuki bought shares in Maruti, it was FDI.
When a VC invests from a foreign entity into an Indian co, it's FDI. When Amazon US funds losses of its Indian entity, it probably brings in equity (since taking debt from abroad is a larger painnnnnn) as FDI.

Most gccs though will just do transfer pricing for their india ops i.e JP Morgan usa will pay jp morgan India a few for the back end ops, so that is revenue for the Indian firm, not equity, and that is not fdi.
Read 10 tweets
Apr 29
Personal loans by banks (marketshare):
- Housing loans still dominate (52%)
- Education has halved marketshare (now 2.4%)
- Vehicle loans at 10%
- Unsecured personal loans rises to 29% marketshare
- Credit card usage is rising Image
We now have the split by gender (male/female) and that's throwing some interesting changes in the last decade.

Women are now 40% of all education loans from banks. This is excellent news. Image
But sadly, most of even this growth is not due to a larger number of women taking education loans. It's that the loans are much more. From 2.2 lakh per account to 6.3 lakh, though the number of accounts is the same (8 lakh) after a big dip during covid. Image
Read 9 tweets
Mar 31
India's current account deficit is only $11 bn in the Oct-Dec quarter. For FY2024-25 it's only $37 billion. This is good; the rupee fell, but the problem was FPI flows and speculatory rupee trade, not fundamental trade flows.

Thread: 🧵 Image
Note that in the previous quarter, the deficit was $16 bn. It was announced as $11bn and has now been revised UPWARDS by $5bn. So these figures can be revised.

rbi.org.in/Scripts/BS_Pre…
We import a lot of gold. Last quarter too, we imported $19bn worth, but that is hardly a "current account item" in my book. It's a financial import. So if we look at the deficit net of gold, we have a $8bn surplus! Image
Read 9 tweets
Mar 30
Interesting move in the Vodafone Idea game - the government will convert about 37,000 cr. of debt into equity - buying about 3700 cr. of shares at Rs. 10 each.

Since its your money as a taxpayer, you will rightfully ask, but hello, aren't the shares at Rs. 6.80 in the market? Image
Well, of course, but there is a rule that you cannot issue shares below "par" so we have to cough up 50% more.

Does this help Vodafone idea? There is a song, "Doobne waale ko tinke ka sahaara hi bahut" (To a drowning man, even a twig is a saviour". This song has no idea about drowning men, but Idea now has a twig.
It's a twig. Vodafone Idea owes the government a ludicrous 210,000 cr. Of which it will only reduce the debt by 37,000 cr. now.

And there is no fresh money coming in. So everyone is getting diluted just like that. Image
Read 10 tweets
Feb 26
Gold bonds wise - the worry isn't that the government didnt hedge the gold, the worry really is that they didn't do enough of it to change any imports at all. In fact they raised the duty on gold, making gold even more expensive!
The idea of the SGB was that if you only cared about it as a financial asset, then you could just buy an SGB. The lower interest of 2.5% (versus typical bond issues of 8%+) would help the government raise funds at lower interest and hopefully, reduce imports.
Gold imports in USD terms is about $50bn a year. It was $34bn in FY 2015. So about 50% up in 10 years, which isn't big at all in terms of value, less than 5% a year in dollar terms but meaningful in rupee terms with both duty and USDINR going up.
Read 7 tweets
Feb 1
Budget2025: Thread starts here.

Expect bad attempts at jokes. Do not expect tax cuts. I hope there isn't too much poetry, though I'll quote cartoon movies liberally.
India's highest tax rates of the past, and it's come down to 39% (!) a couple years back. Image
Please, this is what I think is good commentary. Just saying, in case you're here because you think it's informative

Read 73 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us!

:(