New stock traders a growing tribe in Telangana
Hyderabad: Stock market is the new goldmine for many in Telangana, where there is a staggering increase of 82.81 per cent new investors in just one year. According to data from the Bombay Stock Exchange (BSE) website, last year, there were 14,35,030 investors trading from Telangana. By November 8, the number of registered accounts here […]
Hyderabad: Stock market is the new goldmine for many in Telangana, where there is a staggering increase of 82.81 per cent new investors in just one year.
According to data from the Bombay Stock Exchange (BSE) website, last year, there were 14,35,030 investors trading from Telangana. By November 8, the number of registered accounts here shot up to 26,23,242.
Soon after its multi-year low in March 2020, the Indian stock market saw a one-way rise. Gains in the market attracted many new investors to open demat accounts to deal at Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In fact, the whole country saw a growth of 51.63 per cent of new investors in the last one year.
“The bull run attracted many to invest their money in the stock market,” says Tadimarri Sujay, a city-based investor who started trading this February.
“As the market performed well despite the pandemic, it drew attention from those with money but didn’t have good sources to invest. I know many from Hyderabad who started investing soon after the pandemic hit. As the market is still doing good, there are more investing in reputed companies and PSUs,” he adds.
While the bull market might be one reason for more investors, two lockdowns also meant time to research. Karthik Kondapavuluri, an IT professional from the city, who developed interest in the market recently, points out.
“It wasn’t like information about the stock market was not available before the pandemic. It was just difficult to find time to research. Also, since trading is not as easy as investing in FDs, gold or real estate, many were hesitant to invest without understanding the market.”
“During the lockdown, we had time to study how the market functions and invest slowly. Since the market is bullish at the moment, profits from small investments encouraged people to continue investing,” he adds.
However, regular traders worry this trend might harm the market in the long run. According to city-based investor Manoj Naidu, the bull run might stop after some time and the market might see a fall.
“I fear that in such a scenario, new investors might panic and pull out. This can result in the market falling further, which isn’t good for regular investors,” he said.
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