The surge in retail investor participation in the stock market has reached unprecedented levels, with over 9.5 crore individual investors holding close to Rs 36 lakh crore worth of stocks in 2,500 listed companies, according to the Economic Survey 2023-24.
This surge has been attributed to technological advancements such as India Stack and regulatory measures that have made it easier for retail investors to access and trade in the stock market. The survey highlighted that retail investors now have nearly 10 per cent direct ownership in the market, in addition to their indirect ownership through equity mutual funds.
The impact of retail investors on the market has been significant, with their investments contributing to the overall wealth creation in the economy. This influx of retail investors has also brought a new dynamic to the market, with individual investors playing a more active role in shaping market trends and influencing stock prices.
As the retail investor base continues to grow, experts believe that their participation will have a lasting impact on the market, driving innovation and growth in the economy. With the Union Budget also playing a crucial role in shaping the economic landscape, the influence of retail investors on market dynamics is expected to be a key factor in the coming years.
