Are investors losing faith in the stock market? 38 lakh customers exited the shares

These pressures led to a sharp drop in trading volumes on the exchanges. Investors are leaving the market. is their confidence rising Share Market,

In a tweet, Ashish Baheti, a SEBI registered analyst and co-founder of NAV Investment Research, quoted nse Data shows that 38 lakh clients have left the stock market in the last 6 months. He said, “lockdown traders” must have seen the reality of the stock market.

Last month, Nitin Kamath, chief executive of leading online-trading platform Zerodha, said they have seen a decline of about 50% in monthly new account openings since January this year, and the trend has been similar across the industry.

Baheti expects further decline in the customer base in the market going forward.

According to NSE data, trading in the cash market 10,20,626 crores below — 11,60,846 crore in December and 12,01,108 crore in November last year.

Further, NSE data shows that the average daily turnover 48,601 crore in January 2023, down from 52,766 crore in December and 5,71,96 crores in November 2022.

The turnover of demat securities fell by 40.6% in January 2023. 5,168.47 crores Vs. 8,704.49 crores in December 2022. In November last year, demat securities were traded 5,947.05 crores.

Also in January 2023 the market cap of cash market on NSE declined by approx. from 12.17 lakh crores 268.02 lakh crore as compared to 280.19 lakh crores.

Not only this, the total turnover of equity on BSE has also fallen. Rs 1,18,132.64 crore in September 2022 According to statistics, 68,103.37 crores in January.

Commenting on the fall of investors in the market, Rohan Mehta, CEO & Portfolio Manager, Turtle Wealth said, “It is a clear sign of people losing hope in the markets, fear buying and greedy sell bids tweaked to buy.” Must go when people lose hope and sell when people are very optimistic.”

Mehta further explained that this has happened in the last 20 years, every bull run is followed by a huge consolidation period and before that also it happens, now we are in the 16th month of consolidation in the range of Nifty 50 or Nifty 500, The index remained flat, but the broader markets were widely hurt, for every 52-week high, there were 9 stocks that hit a 52-week low.

He gave four reasons for the current fall in the market. First, bad quarterly numbers; secondly India is a bit overvalued so most of the money has been shifted to other cheaper emerging markets; the third Adanisaga has scared people off the markets; And finally the overall indication of slowdown in the core business.

However, CEO of Turtle Wealth believes that after major consolidation, structural bull run begins, pre covid we saw almost 9 quarters of consolidation and after that, we saw a huge uptick, but here The question is how many people stay invested?

He adds, “Most people enter the markets for the money, but soon lose track of that goal and start chasing some personal version of fun.” He believes this is the best time to review and rebuild a portfolio, to pull out the weeds and water the flowers, given the stock’s price, and while the quarterly numbers have been impressive, Flowers and Visa do the opposite. .

CEO concluded, it may take 1 or 2 quarters but a structural rally in the markets is likely to happen soon.

Year-to-date, the Sensex has fallen around 2.8%, while the Nifty 50 has seen a decline of over 4%. Currently, Sensex is below 59,500 and Nifty 50 is below 17,500 level.